01 listopada 2021


Acquisition of real estate by a foreigner


Acquisition of real estate by a foreigner

 

Acquisition of real estate by foreigners - without a permit - is possible only in strictly defined cases. How does the purchase of real estate by EU citizens and other non-EU countries proceed in the light of the law?

 

Pursuant to the applicable regulations, foreigners who want to buy agricultural and forest land in Poland must obtain a permit from the Ministry of the Interior. It results from the act on the acquisition of real estate by foreigners.

 

What is worth knowing about the acquisition of real estate in Poland by a foreigner? How do I get permission to buy real estate?

 

In this article you will learn, among others:

  • can foreigners purchase real estate in Poland

  • whether a permit is required for the purchase of premises by a foreigner

  • what the formal issues of such transactions look like

 

 


Act on the acquisition of real estate by foreigners

 

Can a foreigner buy real estate in Poland? The most important issue in the case of purchasing real estate of non-Polish citizens is to establish the status of a foreigner. By this term we mean:

  • a natural person who does not have Polish citizenship,

  • a legal person based abroad,

  • a company of the persons mentioned above, without legal personality and established abroad, established in accordance with the legislation of foreign countries,

  • a legal person and a commercial company without legal personality with its registered office in Poland, controlled directly or indirectly by the persons or companies mentioned above.

 

The principle of purchasing real estate by foreigners is the need to obtain a special permit, issued by the Minister of the Interior and Administration. The purchase of real estate without this permit is absolutely invalid - the transaction does not take place. Fortunately, there are a few exceptions in the Act on Acquisition of Real Estate by Foreigners.


It is worth emphasizing that this prohibition does not apply to the purchase of independent residential premises, as well as utility premises for a garage or a share in such premises, if it is related to satisfying the housing needs of the buyer or owner of the property or an independent dwelling.
 
 

Foreigner's application - how to obtain a permit?

 

The Minister of the Interior and Administration grants a permit on the basis of a submitted application, in which ties with Poland must be proven. How can I do that? You can indicate:

  • Polish nationality or origin,

  • a spouse who is Polish citizens,

  • residence permit: temporary (this does not apply to a temporary residence permit for victims of trafficking in human beings or due to circumstances requiring a short-term stay of a foreigner in Poland), permanent or long-term EU resident,

  • membership of the management board of a controlled commercial company,

  • conducting business or agricultural activity in Poland, in accordance with the provisions of Polish law.

 

Form of the application for a permit for the acquisition of real estate by a foreigner can be downloaded from the website biznes.gov.pl. The completed form, along with an identity card and additional documentation, must be submitted to the seat of the Ministry of Internal Affairs and Administration. What documents should be attached to the application?

 

  • an excerpt from the register of entrepreneurs of the National Court Register - if applicable,

  • an excerpt from a foreign register on entry in the register of entrepreneurs - if applicable,

  • an excerpt from the land and mortgage register, an excerpt from the land register,

  •  

    an excerpt from the cadastral map,

  • documents constituting the basis for changing the marking of the real estate,

  • an excerpt from the local spatial development plan,

  • a declaration of the seller expressing the will to sell the real estate to the foreigner,

  • decision on development conditions,

  • documents confirming the foreigner's ties with the Republic of Poland,

  • proof of payment of stamp duty,

  • documents confirming the source of origin of funds for the purchase of real estate.

 

Importantly and worth emphasizing, the area of ​​real estate purchased by foreigners for living purposes may not exceed 0.5 ha.

 

 

Real estate purchase permit - when is it not needed?

 

Permission for the purchase of real estate by a foreigner is not always necessary. In certain cases, it is possible to purchase real estate for foreigners without a permit. You don't need a special permit when you purchase:

  • an independent apartment that provides adequate housing conditions,

  • premises or a share in a premises intended for a garage - if, as a buyer, owner of real estate or an independent flat, you want to purchase a garage to ensure adequate housing conditions,

  • real estate - if you have lived in Poland for at least 5 years after obtaining a permanent residence permit or a long-term resident's EU residence permit,

  • real estate that will be part of the property community - if you have a wife or husband with Polish citizenship and you live in Poland for at least 2 years from obtaining a permanent or long-term resident's EU residence permit,

  • real estate from a person who is its owner or perpetual usufructuary for at least 5 years and you are entitled to inherit real estate on the date of purchase (e.g. a daughter, son or grandson acquires real estate from the mother, father or grandparents)

  • real estate as a mortgage creditor (bank) - when you take ownership of the real estate after an unsuccessful auction in enforcement proceedings.

 

A potential heir from a potential testator will purchase real estate in Poland without any additional formalities, but under two conditions. First, he must inherit real estate on the basis of the provisions of the act, and not solely on the basis of the testator's will. Moreover, the seller of the real estate is its owner or perpetual usufructuary for at least 5 years before the sale. Of course, the permit does not apply to the acquisition of real estate by inheritance or debt collection by persons entitled to statutory inheritance.

 

Interestingly, if a foreigner who acquired real estate included in the estate on the basis of a will, does not obtain a permit on the basis of an application submitted within two years from the inheritance opening (death of the testator), the ownership of the real estate or the right of perpetual usufruct is acquired by the persons who would be appointed to inheritance from the Act, even if they were excluded from inheritance on the basis of a will.

 

 

Purchase of real estate by a foreigner - formal issues

 

In all the cases described above, with the exception of inheritance, the permit will be required when the object of purchase is land with an area of ​​more than one hectare, as well as in the case of real estate located in the border zone.

 

The latter condition can be extremely onerous. This is due to the fact that the frontier zone covers the entire area of ​​municipalities adjacent to the state border, and in the maritime section - to the seashore. If the width of the border zone determined in this way does not reach 15 km, the area of ​​the communes directly adjacent to the state border or the sea shore is also included in the border zone.

 

In Poland, border zones are designated in as many as 12 voivodships and there are several dozen municipalities and cities in them. For example: Gdańsk, Szczecin, Chełm, Zakopane, Przemyśl, Słupsk, Koszalin.

 

 

 

Permission to acquire real estate and the EU member states

 

However, citizens of the European Union, the European Economic Area and Switzerland can freely purchase real estate. The transition periods negotiated in the accession treaty have already ended - the last one in May 2016. Subject, however, to restrictions on the acquisition of agricultural land.

 

In order to prevent the circumvention of the provisions in question, the consent of the Minister of the Interior and Administration is also required in the case of acquiring shares or stocks of companies registered in Poland, which are owners or perpetual users of real estate located in Poland. In this case, the same rules apply as for the acquisition of real estate.

 

A citizen of the European Economic Area and Switzerland may purchase such shares or stocks without permission. On the other hand, citizens of other countries must demonstrate either that the condition exempting them from the obligation to obtain a permit has been met, or they must obtain a permit.

 

Attempts to circumvent the Act are also served by the obligation imposed on notaries and courts to send the Minister of the Interior and Administration documents under which real estate was acquired in Poland by a foreigner. This minister also keeps a special register of real estate, shares and stocks acquired or subscribed for by foreigners without a permit.

 

The sanction of invalidity of a contract concluded in breach of the provisions of the Act, as well as the mechanisms to prevent it, which are included in its provisions, should encourage foreign sellers of real estate to carefully read the above-mentioned legal act. If we do not check whether we can sell the property to a foreign buyer in a given case, we may run into unnecessary difficulties in finalizing such a transaction.

 

 

 

Remember that if you have any doubts, I am happy to offer you advice and assistance. Let's meet, you will find that my help in choosing the best mortgage can be invaluable.

 

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Michal Kaplon

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