Poland

Legal and tax aspects of
investing in real estate
the public authority does not exercise its
preemptive right within that period, the
parties can conclude the final agreement,
which effects the unconditional transfer of
the title to the real estate.
Restrictions in acquiring of real
estate
As a general rule, foreigners (or Polish
entities controlled by a foreigner) are
required to obtain a special permit of the
Minister of Internal Affairs for acquiring
a real estate in Poland. The permit is
necessary when acquiring ownership of real
estate or perpetual usufruct on the basis
of any legal event (e.g. purchase, in-kind
contribution, merger with a Polish entity,
taking up shares in Polish entities).
The permit is issued upon a written request
of a foreigner, provided that:
• a foreigner’s acquisition of real estate
does not pose a threat to the State’s
defense, national security, public order
and is not contrary to the social policy
and public health considerations;
• the foreigner proves that there are
circumstances confirming his bonds with
Poland (i.e. for example the buyer has
Polish origins or is conducting business
or agricultural activities in the territory
of Poland under the Polish law).
The Minister’s decision concerning real
estate acquisition should be issued within
one month (two months in particularly
difficult cases). The permit is valid for two
years from the day of issuance.
The acquisition of real estate without a
permit is invalid. A foreigner intending to
acquire real estate in Poland may apply for
a promise of the permit. The promise of
the permit is valid for one year. During this
period a permit cannot be refused unless
the actual circumstances pertinent to the
decision have changed.
The above restrictions do not pertain
to acquiring real estate by entities from
European Union, European Economic Area
or Switzerland (or Polish entities controlled
by such) – provided that a real estate to be
acquired is not agricultural or forest land.
Acquisition of such real estate, until 1 May
2016, also requires the abovementioned
entities to obtain the permit of the Minister
of Internal Affairs. However, acquisition
of shares in a company being owner of
agricultural or forest land by entities from
European Union, European Economic Area
or Switzerland (or Polish entities controlled
by such) do not require obtaining the permit
of the Minister of Internal Affairs.
After 1 May 2016, the obligation to obtain
the permit for acquisition of agricultural
or forest land by entities from EU, EEA or
Switzerland will be abolished.
In connection with the above, a new
legislation restricting trade of agricultural
land is pending.
Under the new law on shaping the
agricultural system, coming into force as
of 1 May 2016, acquiring of agricultural
land by any entity (regardless of origin) will
be subject to certain restrictions. The new
limitations include in particular:
• introducing a pre-emption right of an
individual farmer whose land neighbours
with an agricultural real estate being
sold,
92 | Poland. The real state of real estate