Due to the constantly growing number of foreigners seeking to acquire real estate in Poland, this issue has become particularly important. The large number of regulations and sometimes their high level of complexity do not make it any easier for foreigners to acquire real estate. This short guide is intended to give some insight into the subject.
DO YOU WANT TO BUY A FLAT IN POLAND? DO NOT HAVE POLISH CITIZENSHIP?
A citizen of e.g. Ukraine or the United Kingdom may acquire a self-contained residential premises (a residential premises constituting a separate property, which we will hereinafter refer to as a flat) without the need to apply for a permit from the Minister responsible for internal affairs (Article 8 section 1 point 1 of the Act of 24 March 1920 on the Acquisition of Immovable Properties by Foreigners).
It should be remembered that the provisions of the Act on the Acquisition of Immovable Properties by Foreigners do not apply to the acquisition of cooperative ownership rights to residential premises. A cooperative ownership right to a residential premises does not constitute separate ownership of a property, it is a limited property right which may be converted into separate ownership and which is transferable and heritable.
WOULD YOU LIKE TO BUY A GARAGE ALONG WITH YOUR FLAT?
A citizen of e.g. Ukraine or the United Kingdom may acquire a self-contained residential premises (a residential premises constituting a separate property, which we will hereinafter refer to as a flat) without the need to apply for a permit from the Minister responsible for internal affairs (Article 8 section 1 point 1 of the Act of 24 March 1920 on the Acquisition of Immovable Properties by Foreigners).
The provisions of the Acquisition of Immovable Properties by Foreigners do not apply to the acquisition of cooperative ownership rights to non-residential premises (e.g. a garage). Such premises can be purchased in Poland by anyone. The construction of a cooperative ownership right to a non-residential premises is essentially the same as the cooperative ownership right to a residential premises referred to above.
DO YOU WANT TO BUY A SHARE OF THE ACCESS ROAD TOGETHER WITH YOUR FLAT?
It sometimes happens that a flat is located in a building that does not have access to a public road. It is then necessary to purchase a share of the access road (internal road). Permission is already required to purchase such a flat together with a share of the access road.
A foreigner (e.g. a citizen of Ukraine or the UK) cannot acquire an share in property or a whole property without obtaining a permit from the minister responsible for internal affairs. Such acquisition shall not be subject to the exemptions referred to in Article 8 of the Act of 24 March 1920 on the Acquisition of Immovable Properties by Foreigners).. The only exception occurs when:
- a property or an interest in a property is to be purchased by a foreigner residing in the Republic of Poland for at least 5 years after a permanent residence permit or a residence permit for a long-term EU resident has been granted (more on the concept of residency below);
- the real property or a share in the real property is to be purchased by a foreigner who is the spouse of a Polish citizen and has resided in the Republic of Poland for at least 2 years since the granting of a permanent residence permit or a long-term resident's EU residence permit, and the real property or share in the real property as a result of the purchase will constitute the marital joint property of the spouses;
- a foreigner wishes to acquire the property or a share in the property, if on the date of acquisition they are entitled to statutory inheritance under Polish law from the person selling the property, and the person selling the property has been the owner or perpetual usufructuary of the property for at least 5 years.
It is therefore crucial to establish whether the flat is sold with a share of the public road.
HOW TO PROVE RESIDENCE IN THE TERRITORY OF THE REPUBLIC OF POLAND
The domicile of a natural person is the place where that person resides with the intention of permanent inhabitation. Residence is therefore a factual situation that often has to be proven in real estate matters.
The documents on the basis of which residency can be documented are:
- tenancy agreements;
- employment contracts in the territory of the Republic of Poland;
- annual PIT (income tax) statements confirming tax payment in the territory of the Republic of Poland.
Being registered under certain address is not the same as being domiciled. Theoretically, someone can have a registration and reside outside the territory of the Republic of Poland. Therefore, the certificate of registration can only be an additional, but not the primary document confirming residence in the territory of the Republic of Poland.
WHO IS CONSIDERED TO BE A FOREIGNER?
According to the Act of 24 March 1920 on the Acquisition of Immovable Properties by Foreigners, a natural person who does not hold Polish citizenship is considered a foreigner. The Act also contains detailed regulations on the status of companies (legal persons). However, discussion of these principles requires a separate publication.
Natural persons who are foreigners, with certain exceptions, are required to obtain a permit from the minister relevant for internal affairs before purchasing a property. Among others, foreigners who are citizens or entrepreneurs of states - parties to the Agreement on the European Economic Area or the Swiss Confederation - are released from the obligation to obtain a permit.
Citizens of Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the Swiss Confederation will be released from the requirement to obtain a permit.
A foreigner in this context will be the citizens of such countries as Ukraine, Russia, Belarus, USA, Canada.
THE SITUATION OF BRITISH CITIZENS.
On 1 January 2021 The United Kingdom of Great Britain and Northern Ireland ceased to be a member of the European Union and the European Economic Area. Therefore, UK citizens are required to obtain permission from the Minister responsible for internal affairs to acquire property.
It should be noted that the issue of the acquisition of property by British citizens was not regulated by the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (2019/C 384 I/01).
ADDITIONAL RESOURCES:
the Act of 24 March 1920 on the Acquisition of Immovable Properties by Foreigners:
https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU19200310178
Principles of obtaining permits for the acquisition of property by foreigners.