Purchasing Real Estate

When Does a Foreigner Need a Permit to Purchase Real Estate? The General Rule

According to Polish law, foreigners from outside the European Economic Area (EU, Iceland, Liechtenstein, Norway) and Switzerland generally must obtain a permit from the Minister of Internal Affairs and Administration (MSWiA) to acquire:

• Ownership title to real estate (land, buildings).
• The right of perpetual usufruct of land.
• Shares or stocks in commercial companies headquartered in Poland that own or are perpetual users of real estate in Poland, if the acquisition results in the company becoming controlled by foreigners.

Who Is Exempt from the Obligation to Obtain a Permit? Important Exceptions

Fortunately, there are many significant exceptions to the general rule. You do not need a permit if you belong to one of the following groups or are buying a specific type of property:

• You are a citizen or entrepreneur from an EEA member state or Switzerland.
• You are acquiring a separate residential premises (i.e., simply an apartment in a multi-family building). This is the most common and important exception!
• You are acquiring separate commercial premises intended for garage use or a share in such premises (e.g., a parking space in an underground garage).
• You have resided in Poland legally and continuously for at least 5 years from the date of obtaining a permanent residence permit or an EU long-term resident permit.
• You are the spouse of a Polish citizen and have resided in Poland legally and continuously for at least 2 years from the date of obtaining a permanent residence permit or an EU long-term resident permit (or a temporary residence permit issued due to marriage), and the acquired property will become part of your statutory marital joint property.
• You acquire the property through statutory inheritance from a person who owned or was the perpetual user of it for at least 5 years.
• There are also other, more specific statutory exemptions.

It is always worthwhile to carefully verify if your situation qualifies you for an exemption to avoid complications. Our Law Firm can help you with this verification.

What Types of Real Estate Most Often Require a Permit?

If you do not qualify for any exemption, you will likely need a permit primarily when purchasing:

• Dwellings that are located in the border zone
• Undeveloped land (e.g., building plots).
• Land developed with a single-family house or other non-residential buildings.
• Agricultural and forest real estate (often subject to additional, stricter regulations).
• Shares or stocks in companies owning real estate, as mentioned above.

How to Obtain the Minister’s Permit? Application Process

If it turns out you need a permit, you must submit an application to the Minister of Internal Affairs and Administration. The procedure is as follows:

1. Submit the Application: You file a formal application with the MSWiA.
2. Required Documents: You must attach several documents to the application, including:
   • Your identification details and legal status.
   • Details of the property seller.
   • A detailed description of the property (e.g., land and mortgage register number, excerpt from the land register, area).
   • The seller’s declaration of intent to sell.
   • A certificate regarding the property’s designation in the local spatial development plan.
   • Your declaration about real estate previously acquired in Poland.
   • Documents confirming your ties with Poland.
   • Proof of payment of the stamp duty.
3. Application Assessment: The Ministry analyzes the application based on two main criteria:
   • Whether the acquisition poses a threat to defence, state security, or public order.
   • Whether you have demonstrated ties with the Republic of Poland.
4. Decision Issuance: The proceedings can take several months or longer. Upon completion, the Minister issues a decision – either granting the permit or refusing it.

What Constitutes “Ties with Poland”?

The law does not exhaustively define this concept, but examples of circumstances indicating ties with Poland include:

• Having Polish descent or a Pole’s Card.
• Being married to a Polish citizen.
• Holding a residence permit (temporary – especially long-term, permanent, EU long-term resident).
• Conducting business or agricultural activity in Poland.
• Being a member of the management board of a company based in Poland.

How Can Our Law Firm Help You Purchase Real Estate?

Regardless of whether you need a permit or not, the process of purchasing real estate as a foreigner can be complex. We offer support in:

• Determining if you need a permit: We thoroughly analyze your legal situation and the type of property.
• Verifying if you meet the exemption criteria.
• Preparing and submitting the permit application: We gather the necessary documents, complete the application, and ensure its formal correctness.
• Demonstrating your ties with Poland: We help collect arguments and evidence confirming your connections to the country.
• Representing you before the Minister of Internal Affairs and Administration.
• Monitoring the proceedings and liaising with the office.
• (Optionally) General legal advice during further stages of the purchase transaction.