International property sales transactions. Warsaw – LBC INVEST
The report published in June 2019 by the Ministry of Internal Affairs and Administration stated that in 2018 foreigners carried out 16531 transactions of real estate purchase in Poland. This is another increase compared to previous years.
Citizens of other countries were interested in both land and different types of premises. What is more, last year saw the greatest growth in these types of transactions. Two years ago, there were only 5464 recorded. Buyers are usually citizens of countries neighbouring Poland, and the first positions in the ranking – at least in terms of premises – were occupied by Ukrainians, Germans and Belarusians. Buyers from Scandinavia, especially Norway and Sweden, as well as large South African investors, both private and institutional, are the ones that are most willing to invest in real estate market in Poland. Buying real estate in Poland is becoming easier. From May 1, 2016, citizens and entrepreneurs from the European Economic Area and Switzerland do not need permits to purchase real estate in Poland, including agricultural and forestry real estate. In the case of other foreigners, they are necessary.
What is the European Economic Area?
The European Economic Area includes all the countries of the European Union, as well as Iceland, Liechtenstein, and Norway. If you are not a citizen of any of the above-mentioned countries, you must obtain the consent of the Minister of the Interior and Administration for the purchase of real estate in Poland.
What is the procedure to obtain such consent?
First of all, an appropriate application should be submitted to the appropriate administrative office. The Minister may grant permission if the applicant guarantees that the purchase of his property does not pose a threat to national security or public order. Potential restrictions arising from social or health policies may also play a significant role. It is also important to prove your ties with Poland (e.g. your origin or the origin of close family members such as your wife or husband). A positive factor may also be a temporary or permanent residence permit or the status of long-term EU resident. However, when it comes to temporary stay, the above-mentioned rule does not apply to residence permits for victims of human trafficking or due to other circumstances requiring a short stay in Poland. An additional argument for a positive consideration of the application is the fact of conducting business in Poland or being a member of the management board of a company operating in Poland. The permit is valid for two years from its issuing.
What determines the rejection of an application?
An example of a negative factor is an attempt to purchase real estate based on so-called statutory inheritance in accordance with the provisions of the foreigner’s country of origin. In Poland, such inheritance occurs automatically when the deceased has not left a will or the will is invalid. Alternatively, this may happen if the indicated people reject the inheritance or for some other reason (e.g. due to the debts of the deceased) they cannot accept it.
If a foreigner does not belong to the group of statutory heirs (this is usually regulated by the legislation of individual countries or by the Polish state if there are no such provisions in the given country), he may benefit from inheritance under a will. If he acquires real estate on this basis, he has two years to apply for a permit. After this time, the property or the right to its perpetual usufruct will be transferred to heirs who inherit according to the principles of Polish law. Also, a permit cannot be granted if the foreigner applying for it is part of a company that is undergoing transformation.
In what cases is a permit not necessary?
Apart from the circumstances described at the beginning, no permit is required when a foreigner purchases an apartment or premises intended for a garage. In addition, if the buyer has been living for at least five years after obtaining a permanent residence permit, he has the status of a long-term EU resident. Also, real estate belonging to joint property does not require a permit (e.g. when you have a wife or husband with Polish citizenship and you have been living in Poland for at least two years after obtaining the relevant permits). Real estate, which the foreigner acquires from the owner himself or which he takes over after enforcement proceedings, is also excluded from the need to obtain a permit. The exception to this rule are properties located in the so-called border area and agricultural areas of more than 1 ha. In such cases there are not exceptions, it is absolutely necessary to apply for a permit.
Guarantee
You can also obtain a special guarantee, i.e. a commitment to issue a permit. To apply for it, you must submit documents confirming the right to purchase the property – the same documents as those attached to the permit application. The guarantee is valid for one year from its issuance. During this time, if the foreigner meets the conditions listed above, the ministry cannot refuse to grant a permit. Acquisition of real estate contrary to applicable law in Poland is considered invalid. Such invalidity may be ruled by a court at the request of the commune head or mayor or president of the city in which the purchased property is located. A poviat staroste, a voivodship marshal, or a voivode, as well as the Minister of the Interior and Administration himself may also request such a judgment.
Procedure
The procedure is carried out at the Ministry of the Interior and Administration. In order to initiate it, you must submit an application accompanied by documents specifying your legal status. All documents should be issued no earlier than six months before the deadline for applying. The institutions to which the application will be submitted have two weeks to raise objections. The whole procedure should not take more than a month (or two if the case is complicated).
Who can help?
Businesses specializing in international sales can help with the entire permit process and the acquisition of the property itself. One such company is LBC INVEST, which specializes in the services for foreign investors interested in investing capital in Poland. LBC INVEST deals with international real estate sales transactions all over Poland. LBC INVEST has its headquarters in Gdynia and a branch in Warsaw. The company has its representatives in England, Monaco, Germany, Sweden and the United Arab Emirates. LBC INVEST is a member of Scandinavian-Polish Chamber of Commerce (SPCC) and Polish-African Chamber of Commerce & Industry (PAIPH). The company was found by Agata Karolina Lasota in 2007.
