Generally, a purchase of real estate, or taking it over in perpetual usufruct, as well as a purchase or taking over shares in a company having its registered seat in the territory of Poland and holding title to, or the right of perpetual usufruct to real estate (if such an action results in the company becoming controlled by a foreign person), requires a permit from the Minister of Internal Affairs and Administration. However, acquiring stock in publicly traded companies does not require a permit.
Permits are issued by the director of the Department of Permits and Licences (Departament Zezwoleń i Koncesji) in the Ministry of Internal Affairs an Administration, acting on the authorisation from the Minister of Internal Affairs and Administration. A permit is issued in the form of an administrative decision, pursuant to an application having been filed by a foreigner. The permit is valid for two years from the date of issue. Provisions of the Code of Administrative Procedure apply to the purchase of real estate.
Currently, a foreigner does not have to apply for a permit in the following cases:
· The purchase of an independent residential property, as defined in the Law on Ownership of Premises of 24 June 1994, including purchase of separate premises destined for garages, or of shares in such premises;
· The purchase of real estate by a foreigner who has lived in Poland for at least five consecutive years from the date of issuance of a permanent residency card, or EC long-term residence permit for the territory of Poland;
· The purchase of real estate by a foreigner who is the spouse of a Polish citizen and who has lived in Poland for at least two consecutive years from the date of issuance of a permanent residency card, or EC long-term residence permit for the territory of Poland when the real estate will become part of the matrimonial estate;
· The purchase of real estate by a foreigner, if legally entitled to inherit from the property title holder on the day of the purchase, when the property title holder had been the owner or perpetual user of the property for at least five years;
· The purchase by a legal entity or a commercial partnership that has no legal personality and a registered seat in Poland, controlled directly, or indirectly by any entity mentioned in 1, 2, or 3 above, in accordance with its statutory objectives, when the total area of undeveloped land does not exceed 0.4 ha within city zones;
· The purchase of real estate by a foreign entity that is simultaneously a bank and a mortgage debtor, as a result of an unsuccessful auction being a part of an execution process;
· The purchase or acquisition by a bank being a legal person defined in art. 1 paragraph 2 item 4 of the law, of shares in a company, as mentioned in art. 3e of the law, in connection with that bank’s pursuance of claims arising from banking activities performed.
The above listed exemptions from the permit requirement do not apply to property located in the border zone, or when the total area of land zoned for agricultural use exceeds 1 ha.
A permit may be refused only if such a refusal is justified by national security, public order, social policy, or public health concerns.
This text is part of "How to do Business in Poland 2006" written by Unido.