Poland

Legal and tax aspects of
investing in real estate
(hereinafter referred to as the Act on
Property Management) must be taken into
account.
Implementation of PPP
Pursuant to the Act on Public-Private
Partnership public and private entities
conclude an agreement under which the
private partner commits itself to implement
the project at an agreed remuneration
and to cover in whole or in part the
expenditures for project implementation, or
cover them through a third party, while the
public entity commits itself to collaborate
for the purpose of achievement of the
project goal, in particular by making its
own contribution. The PPP contract can
also provide that for the purpose of its
performance, the public entity and the
private partner shall establish a company, a
limited partnership or a partnership limited
by shares.
Financial restrictions
The total joint amount up to which bodies
of government administration can contract
financial liabilities on the basis of contracts
of PPP in a given year is specified in the
Budget Act. In 2015 it was PLN one billion.
However, as a rule, the financing of a
project from the State budget to the
amount exceeding PLN 100 million requires
a consent issued by the minister responsible
for public finance. When issuing the consent
the minister responsible for public finance
shall consider the influence of the planned
budget expenditures on the safety of public
finance.
The concession contract – legal
basics
The Act on Concessions specifies the rules
and procedures for contracting concessions
for works or services and the legal
protection measures.
The duration of a concession contract
should take into account the recovery of
the concessionaire’s expenditure incurred
with reference to the performance of the
concession and shall be no longer than:
• in case of concession for works –
30 years;
• in case of concession for services –
15 years.
Where the expected time limit of recovery
of the concessionaire’s expenditure
incurred with reference to performance of
the concession is longer than the period
specified above, the contract may be signed
for a longer term.
The concessionaire under the concession
signed with the concession-granting
authority is obliged to perform the subject
of concession for remuneration, which
constitutes in case of:
• the concession for works – exclusively
the right to use the work or such right
with the payment by concessiongranting
authority;
• the concession for services - exclusively
the right to use the service or such
right with the payment by concessiongranting
authority.
Poland. The real state of real estate | 73