Salans publishes first Global Real Estate Report
Commenting on the parity between new Central European EU member states' real estate legislation and that of the EU the report states that the "harmonization" of national laws with EU requirements [has] accelerated dramatically over the last two years."
Turning to Poland, the report mentions the recent amendment to the Polish Law on Acquisition of Real Estate by Foreigners, which it says, "helped further open the real estate market in Poland to EU investors but at the same time, gave the Polish government new and somewhat controversial controls over certain corporate transactions." Though real estate investors from the 'European Economic Area' no longer require a permit to acquire property in Poland, the "strong stance taken by Poland in Brussels" means "that there remain certain restrictions and transitional rules relating to purchases of specific types of real estate (ie agricultural land, land located in border zones and 'second homes')." The "controversial change" refers to a newly introduced requirement that the acquisition of shares from a Polish company which owns real estate will be subject to control for investors outside the European Economic Area, as will "any other transition pertaining to such shares (e.g the sale of shares of a holding company)." At the moment, continues the report, "it is difficult to predict to what extent the new regulation will have an adverse impact on transactions involving the transfer of shares of holding companies."
Other legal changes addressed by the report, include the new VAT rules which apply to the taxation of land. Until April 30 2004 land was exempt from VAT. The repeal of the Polish Language Law, which means that now only employment and consumer agreements have to be executed in Polish, is also given a mention, as is the recent amendment to the Polish Law on Protection of Competition and Consumers (the "Antimonopoly Law"). It concludes its discussion of this piece of legislation by arguing that it "is an unfortunate development in an area of Polish law that continues to be a source of confusion and frustration."
Turning to Poland, the report mentions the recent amendment to the Polish Law on Acquisition of Real Estate by Foreigners, which it says, "helped further open the real estate market in Poland to EU investors but at the same time, gave the Polish government new and somewhat controversial controls over certain corporate transactions." Though real estate investors from the 'European Economic Area' no longer require a permit to acquire property in Poland, the "strong stance taken by Poland in Brussels" means "that there remain certain restrictions and transitional rules relating to purchases of specific types of real estate (ie agricultural land, land located in border zones and 'second homes')." The "controversial change" refers to a newly introduced requirement that the acquisition of shares from a Polish company which owns real estate will be subject to control for investors outside the European Economic Area, as will "any other transition pertaining to such shares (e.g the sale of shares of a holding company)." At the moment, continues the report, "it is difficult to predict to what extent the new regulation will have an adverse impact on transactions involving the transfer of shares of holding companies."
Other legal changes addressed by the report, include the new VAT rules which apply to the taxation of land. Until April 30 2004 land was exempt from VAT. The repeal of the Polish Language Law, which means that now only employment and consumer agreements have to be executed in Polish, is also given a mention, as is the recent amendment to the Polish Law on Protection of Competition and Consumers (the "Antimonopoly Law"). It concludes its discussion of this piece of legislation by arguing that it "is an unfortunate development in an area of Polish law that continues to be a source of confusion and frustration."
