Acquisition of real estate in Poland by foreigners is not always easy

Although the current regulations on the Acquisition of real properties by foreigners provide for a number of exemptions from the obligation to obtain a permit from the Minister of Interior, as of January 1, 2021, citizens of the United Kingdom must apply for the permit. The permit will also be necessary if foreigners want to purchase real estate located in the so-called border belt.

As a rule, the Polish regulations require obtaining a permit from the Minister of the Interior (the “Permit”) for the acquisition of real estate in Poland by foreigners. This is regulated by the Act of March 24th, 1920, as amended.  A foreigner, simplifying, is considered to be a person who does not have Polish citizenship or a company (legal person) having its registered office abroad (or controlled by such entities). At the same time, however, there are many exceptions to the above rule.  As a result, citizens of countries that are parties to the Agreement on the European Economic Area (in practice to a significant extent overlapping with the area of the European Union) and the Swiss Confederation are exempt from the obligation to obtain a Permit. As of January 1st, 2021 , obligation to obtain a Permit, applies to citizens and companies based in the United Kingdom.

It should be noted that the above exceptions do not apply to the acquisition of the so-called border real estate, including, among others, apartments, plots and holiday homes, located in the coastal zone and in attractive areas, e.g. in the south of Poland.

Since the purchase of real estate without the Permit, in a situation where it is required, results in the invalidity of the transaction, it is worth recalling the basic principles related to obtaining Permits. In particular, when the interest of foreigners in attractive real properties in Poland, is still high.

Each transaction should be analyzed individually

The obligation to obtain a Permit or exemption from this obligation should be analyzed individually in relation to each transaction and potential buyer who is a foreigner. It is important to check what is the status the property itself (including: whether it is an agricultural, forestry, border strip property, or whether it is a so-called independent dwelling), in what form it is to be acquired (e.g. contract, inheritance, acquisition of shares in the company that owns the property), and finally – what is the status of a foreigner who wants to acquire a property (whether he/she is a natural person, legal entity or, for example, the spouse of a Polish citizen).