Amendments to the law on the purchase of land by foreigners
As a curiosity, this law has been amended several times and its present incarnation has its roots in legislation dating back as far as World War I. Now, let's analyze the interesting changes this 'noble old lady' has to offer after her most recent face lift.
As a rule, a foreigner - in this case a citizen or an entrepreneur of a member state of the EU - may acquire immovable property without a permit. However, as there are exemptions to every rule, the provident legislator in this case also did not fail to add a few exceptions.
Consequently, the acquisition of immovable agricultural property in general by EU citizens will still require them to gain an appropriate permit. And this proviso will remain in force up to 12 years after Poland's accession to the EU.
However, the acquisition of immovable agricultural property will not require a permit if a citizen of the EU acquires a property that they have held as a lessee for between three to seven years (the time period depends on the location of the immovable property) on the basis of a lease agreement with a certified date. In addition, the EU citizen must have personally conducted agricultural activity on the piece of land while legally residing in Poland.
What's more, a permit will still be required for the acquisition of a second house, which includes any acquisition of a property designed for residential premises or for recreational purposes that is not to be the permanent residence of the foreigner. The permit will not be required, however, for citizens of the EU who have constantly and legally resided in Poland for at least four years or if the second house is purchased in order to perform a business activity consisting of providing services to tourists.
The limitations in the acquisition of land in this scope do not apply to separate apartments. Thus, a foreigner may simply buy an apartment without any restrictions.
Other foreigners may also expect some easing in the procedures for acquiring real estate. However, this does not mean that the Polish Parliament gave up the chance of ensuring plenty of paperwork for officials.
The issuance of a permit is no longer to be conditional upon the approval of the Defense Ministry and, in the case of agricultural land, the Agriculture Ministry. It will now depend on the non-objection of the Internal Affairs Ministry. The objection may be lodged within 14 days from the date in which the information about the application for the permit was delivered to the Internal Affairs Ministry, but, if justified events occur, this time period may be extended by up to two months.
Moreover, the issuance of a permit has been made conditional upon the foreigner providing evidence of their ties to Poland. The act considers the following as exemplary: being of Polish nationality or Polish descent; being married to a citizen of the Republic of Poland; residing in Poland on the basis of a residence permit or permit for settlement; being a member of a managing body of legal persons and commercial companies without legal personality with a seat in Poland controlled by foreign nationals; and the conducting of business or agricultural activity in the territory of Poland pursuant to the provisions of Polish law. Of course, these ties will have to be proved by the foreigner during the application.
It's certainly much more convenient for buyers now that the validity term of the permit required for the acquisition of immovable property has been extended to two years, and the promise of the permit up to one year. It is also better now that any foreigner who acquires immovable property through inheritance will have two years to file the application for the permit as of the opening date of the inheritance proceedings.
Also, car owners may feel happier, as the list of events in which the permit is not required has been extended to include the acquisition of a separate premises designated as a garage, or the acquisition of a share in such a building.
Let's hope that these amendments will simplify and significantly speed up the previously uneasy purchasing procedure for foreigners.
by Aleksandra Dalecka, an Attorney-at-Law at Marek Zdanowicz & Partners in Warsaw.
As a rule, a foreigner - in this case a citizen or an entrepreneur of a member state of the EU - may acquire immovable property without a permit. However, as there are exemptions to every rule, the provident legislator in this case also did not fail to add a few exceptions.
Consequently, the acquisition of immovable agricultural property in general by EU citizens will still require them to gain an appropriate permit. And this proviso will remain in force up to 12 years after Poland's accession to the EU.
However, the acquisition of immovable agricultural property will not require a permit if a citizen of the EU acquires a property that they have held as a lessee for between three to seven years (the time period depends on the location of the immovable property) on the basis of a lease agreement with a certified date. In addition, the EU citizen must have personally conducted agricultural activity on the piece of land while legally residing in Poland.
What's more, a permit will still be required for the acquisition of a second house, which includes any acquisition of a property designed for residential premises or for recreational purposes that is not to be the permanent residence of the foreigner. The permit will not be required, however, for citizens of the EU who have constantly and legally resided in Poland for at least four years or if the second house is purchased in order to perform a business activity consisting of providing services to tourists.
The limitations in the acquisition of land in this scope do not apply to separate apartments. Thus, a foreigner may simply buy an apartment without any restrictions.
Other foreigners may also expect some easing in the procedures for acquiring real estate. However, this does not mean that the Polish Parliament gave up the chance of ensuring plenty of paperwork for officials.
The issuance of a permit is no longer to be conditional upon the approval of the Defense Ministry and, in the case of agricultural land, the Agriculture Ministry. It will now depend on the non-objection of the Internal Affairs Ministry. The objection may be lodged within 14 days from the date in which the information about the application for the permit was delivered to the Internal Affairs Ministry, but, if justified events occur, this time period may be extended by up to two months.
Moreover, the issuance of a permit has been made conditional upon the foreigner providing evidence of their ties to Poland. The act considers the following as exemplary: being of Polish nationality or Polish descent; being married to a citizen of the Republic of Poland; residing in Poland on the basis of a residence permit or permit for settlement; being a member of a managing body of legal persons and commercial companies without legal personality with a seat in Poland controlled by foreign nationals; and the conducting of business or agricultural activity in the territory of Poland pursuant to the provisions of Polish law. Of course, these ties will have to be proved by the foreigner during the application.
It's certainly much more convenient for buyers now that the validity term of the permit required for the acquisition of immovable property has been extended to two years, and the promise of the permit up to one year. It is also better now that any foreigner who acquires immovable property through inheritance will have two years to file the application for the permit as of the opening date of the inheritance proceedings.
Also, car owners may feel happier, as the list of events in which the permit is not required has been extended to include the acquisition of a separate premises designated as a garage, or the acquisition of a share in such a building.
Let's hope that these amendments will simplify and significantly speed up the previously uneasy purchasing procedure for foreigners.
by Aleksandra Dalecka, an Attorney-at-Law at Marek Zdanowicz & Partners in Warsaw.
