Real estate acquisition by foreigners

In this article I would like to explain shortly the rules and obligatory procedure which should be followed by the foreigner to allow him to purchase a property in Poland.

First of all, who is foreigner?

According to the regulations of the Act of 24^th March 1920 on the Acquisition of Land by the Foreign Nationals (Journal of Laws No. 167 Item 1758 with further amendments), the foreign nationals are: natural persons with no Polish citizenship, legal persons with their statutory seats abroad, as well as their subsidiaries or other companies controlled directly or indirectly by the parent company, and also companies with no legal personality, having its statutory seat abroad.

When the consent is necessary?

On the basis of the mentioned Act, the forceful acquisition of the real estate in Poland shall be preceded by the consent of the Minister of Internal Affairs, issued in the form of administrative decision. This duty concerns acquisition of the property right or right of perpetual usufruct, on basis of any legal event, which means not only sale agreement, but also agreement for exchange, succession, usucaption or donation agreement.

Application

What is important, the consent to acquire the real estate is issued only on application made by the foreign national. The details of its consent and the required documents are listed in the Regulation of the Minister of Internal Affairs and Administration of the 20^th June 2012 on the Particular Information and the Types of Documents that shall be presented by the foreign national that applies for the consent to the acquisition of the real property.

The application for the consent shall include:

1. name and the legal status of the applicant,
2. description of the acquired real estate,
3. description of the vendor,
4. description of the legal status of the acquired property,
5. information on the purpose and the possibility to acquire of the real estate,
6. description of the circumstances confirming relation of the foreign national with the Republic of Poland
7. indication if the foreign national can afford to acquire the real estate,

If the foreign national intend to purchase the real estate consisting of more than 15 plots of ground, then he is obliged to make a particular statement including the list of the acquired properties.

Examples of the circumstances which may confirm relation of the foreign national with the Republic of Poland:

• polish citizenship or polish origin,
• marriage to the Polish citizen,
• temporary residence permit, application for permanent residence permit or stay of the European Communities long-term resident permit,
• membership in the management body of the legal entities or commercial law companies, with no legal personality, having its registered statutory seat in Poland, controlled by the foreign nationals,
• performance of the busines or agricultural activities on the territory of the Republic of Poland, in accordance with the Polish legal regulations.

Please remember that the list above is just an example, therefore the foreigner may try to prove his relations with Poland in different way.

Copies of the documents attached to the application must be certified to be true copies of the originals. Documents made in a foreign language shall be filled together with the translation into Polish certified by the sworn translator.

Requirements for issuance of the consent

 On basis of the article 2 mentioned Act, before the decision is made, the Minister of the Internal Affairs may require to be furnished with the evidence and information necessary to proceed with the application. Also, may verify ( with help of the proper administrative bodies) whether the acquisition of the property will not cause a threat for defensive capability, security of the state or the public order and also wnether same will be consistent with the interest of the State. Moreover, the Minister of the Internal Affairs may indicate in the consent special conditions for the foreigner.

Minister of Internal Affairs is obliged to issue the consent if:

• the acquisition of the property by the foreign national will not cause a threat for the defensive capability, security of the state or the public order and also for the social politics and the society health and if the foreign national will prove the circumstances confirming his relations with Poland,
• the Minister of Sate Defense will not file an objection to such transaction, and when the consent is about farmland – the Minister of the Rural Development Affairs. The Ministers may lodge an objection in period of 14 days ( in particularly justified cases in 2 months) from the day of deliver of the Minister of Internal Affairs’ pleading.

IMPORTANT! : When the objection by the mentioned Ministers above is raised, the consent will not be issued.

                           There is a revenue duty to be paid for the application in the amount of  1570 zł.

Validation of the consent

The consent is valid for 2 years from the day when was issued. The consent consist information about vendor, purchaser and the subject of acquisition.

When the consent is not required?

According to the regulations of the Act, there are situations when the consent to purchase real estate by foreigner is not required. For example, the consent is not necessary to:

• purchase housing unit in view of the Act of 24^th June 1994 on the Ownership of Premises;
• purchase commercial unit built and designed as a parking lot or share in such unit, if this is related with satisfying housing needs of the purchaser or the owner of the real estate or the housing unit,
• purchase the real estate by the foreigner having the place of residence in Poland for the last 5 years from the day he obtained a consent for permanent residence or a consent to stay as long as a long-term resident of the European Communities,
• purchase the real estate, which will constitute the joint property of spouses, by the foreign national who is a spouse of the Polish citizen and has a place of residence in Poland for at least 2 years from the day a consent for permanent residence or a consent to stay as a long-term resident of the European Communities was issued,
• purchase the real estate by the foreigner, if on the day of acquisition same is entitled to inherit the real property from the other person and this person has been its owner or has the right of perpetual usufruct for at least 5 years.

IMPORTANT! :  Foreign nationals who are either citizens of the entrepreneurs of the countries - members European Economic Area do not have to obtain the consent to acquire the real property located in Poland. They only have exceptional duty to have the consent to purchase for example farmland and woodland, within 12-year period of time from date of accession to European Union by the Republic of Poland.