Buying a house in Poland – comprehensive guide for foreigners. A dive into property purchase in Poland

Buying a house in Poland – comprehensive guide for foreigners. A dive into property purchase in Poland
Jakub Chajdas

Jakub Chajdas

Partner / Attorney-at-law

The procedure of buying a house in Poland is a serious investment that requires adequate preparation. For majority of people the whole procedure may seem quite complicated. What form should a property sale contract take? Can commercial companies acquire properties? Answers to these questions can be found below.

Buying a house in Poland

Buying a house in Poland. Legal form of the sales agreement

In a situation when real estate (house, a flat, land) is the subject of the sales contract, it is necessary to prepare it in the form of a notarial deed (Art. 158 of the Civil Code). In the notarial deed of sale, the subject of the contract is specified – the document includes a detailed description of the real estate, together with its factual and legal status.

The legal status of the real estate results mainly from the land and mortgage register. It also results from the documents submitted to the notary public. The notary public is responsible for establishing the legal status. As well as for securing the interests of the parties to the contract.

Price and method of payment when buying a house in Poland

The sales contract also includes provisions concerning the price and the method of payment. It also specifies the date on which the real estate in Poland will be released into the possession of the purchasing party. The contract may include a number of other provisions, depending on the situation and needs of the parties.

The parties of the contract have to present all the required documents and submit relevant declarations. The set of documents required to finalize a particular contract varies. It depends on the actual and legal situation as well as the state resulting from the land and mortgage register.

Buying a house in Poland is inseparably connected with notarial costs. They include a notarial fee as well as the cost of extracts from the notarial deed. The amount of the notarial costs varies. It depends on the scope of the performed actions and on the value of the subject of the contract itself. The Notary Public Act does not regulate which party of the agreement pays the notarial costs. Consequently, depending on the settlements, it may be either the seller or the buyer of the real estate.

Nevertheless, notarial costs are not the only costs of the purchase of a house in Poland. If you buy a real estate on the secondary market, it is necessary to pay the tax on civil law transactions. Its rate amounts to 2% of the real estate price. The notary collects the fee and then pays it to the tax office.

Formalities after buying a house in Poland

A conclusion of the sales contract results in obligation to make entries into the land and mortgage register. Court costs depend on the provisions of the contract. Their amount is specified in the act on Court Costs in Civil Cases.

In the case of purchasing real estate with the funds from the mortgage loan, there are additional costs which you have to carry. These consist of the tax on civil law transactions. It results from the establishment of the mortgage. As well as of the court fee for entering the mortgage into the land and mortgage register.

Special conditions of buying a house in Poland for foreigners

The Act on Acquisition of Real Estate by Foreigners governs buying a house in Poland. As a rule, it is necessary to first obtain a special permit. Who issues the permit to buy a real estate in Poland by a foreigner? What are the requirements to obtain such a permit? How long is it valid? Find answers to these questions in this article.

Buying a house in Poland by a Foreigner. Who issues the permit?

The Act on Acquisition of Real Estate by Foreigners provides the rules for granting the permit.

It is issued as a result of the administrative decision made by the Minister in charge of internal affairs if there were no objections from the Minister of National Defence. In the case of agricultural property – if the Minister of Rural Development doesn’t raise objections.

The objection stated by these authorities results in the inability to grant a permit. It is expressed in the form of a decision made within 14 days following the receipt of the request issued by the Minister of Internal Affairs.

A negative decision to issue a permit for buying a house in Poland by a foreigner doesn’t require the opinion of the Minister of National Defense or the Minister of Rural Development.

Buying a house in Poland by a foreigner – the subject and the object of the permit

Within the meaning of the Act, a foreigner is:

  1. an individual who is a non-Polish national,
  2. a legal person whose registered office is located abroad,
  3. an unincorporated partnership of the persons referred to in point 1 or 2, whose registered office is abroad. It must be established in compliance with the legislation of a foreign country,
  4. a legal person and an unincorporated commercial partnership whose registered office is in the territory of Poland. It must be, directly or indirectly controlled by the persons or partnerships referred to in points  1, 2, and 3. of the Act.

Buying a real estate means the acquisition of ownership right of this real estate. Alternatively, the acquisition of the right to its perpetual usufruct following any legal event. You should remember that the acquisition of real estate may occur not only in the case of buying a house in Poland by a foreigner but also due to other legal transactions. This relates to actions such as e.g. the transformation of the cooperative right to accommodation into the property right. Another example may be the acquisition of a property by usucaption.

Buying a house in Poland by a foreigner – application for a permit

The foreigner’s request results in the issuance of the permit if:

  1. acquisition of property poses no threat to the defence and security of the state or to public order;
  2. acquisition of property is not contrary to the interests of social policy and social health;
  3. the foreigner demonstrates circumstances that confirm his relation with the Republic of Poland.

The circumstances listed below can be a basis to verify the connection with Poland:

  • being of Polish nationality or Polish origin;
  • marrying a national of the Republic of Poland;
  • holding a temporary, permanent or EU long-term residence permit.

The application for the permit to buy a house in Poland by a foreigner should include:

  1. the name of the applicant and his legal status;
  2. identification of the real estate to be acquired;
  3. the name of the seller;
  4. a description of the legal form of the acquisition of real estate;
  5. information on the purpose and possibility of acquiring the real estate.

A foreigner applying for a permit should enclose the following documents:

  • a document that confirms the circumstances indicated in the application,
  • a document that confirms the connection with the Republic of Poland
  • other documents that enable verification of the validity of the property’s acquisition.

There is no possibility to list all the documents that may be necessary to consider the application. In this way, the legislator made it possible for the authority to demand any document, as long as it justifies the proceeding. Any document that determines the correctness of the property’s acquisition may be valid.

What is important, the area of a real estate purchased by foreigners for their living needs may not exceed 0.5 ha.

Do you need help completing the documents necessary to buy a property?

Buying a property can be overwhelming. Do not hesitate to ask for help. Contact our experts who will make sure that the entire procedure will be successful. Our specialists will verify that the content of a property purchase agreement corresponds to your interests. They will also let you know what formalities and documents still need to be taken care of.

Buying a house in Poland by a foreigner – the content and validity of the permit

The permit should specify in particular:

  1. the name of the buyer and of the seller,
  2. the acquired property,
  3. special conditions, if the Minister of Internal Affairs specified them in a given case.

According to the regulations, the permit for the purchase of real estate by a foreigner is valid for 2 years.

Permit proceedings may be discontinued if the foreigner who initiated them requests it. This can also happen if the owner of the real estate says he has no intention to sell it to the foreigner applying for the permit.

Buying a house in Poland by a foreigner – a promise of a permit

A foreigner intending to buy a real estate may apply for a promise of a permit issuance. The promise of a permit can be used when a foreigner, for various reasons, cannot yet apply for a permit to buy a real estate.

Foreigners most frequently apply for a promise of issuance in the following situations:

  • They want to buy a real estate through an auction,
  • The real estate they want to buy has an unresolved legal status,
  • They want to buy a separated part of a property, and the geodetic division has not yet been completed.

The promise is valid for one year from issuance. A permit allowing a foreigner to buy a real estate cannot be denied during the validity of the promise. This can only happen if a significant change in factual circumstances has occurred. The essence of this change should affect the decision in the case.

Buying a house in Poland by a foreigner – when a permit is not necessary?

The Act on the Acquisition of Real Estate by Foreigners specifies cases in which it is possible to buy a property by a foreigner without the permit.

For example, a permit is not required for:

  1. Buying an independent residential unit, which provides adequate living conditions.
  2. Buying a unit or a share in a unit serving as a garage, if it is intended to provide adequate living conditions.
  3. Buying a house in Poland by a foreigner who has been living in Poland for at least 5 years from the date of obtaining a residence permit.
  4. Buying a house in Poland that will be part of matrimonial real estate– i.e. when the foreigner is the spouse of a  Polish citizen and lives in Poland for at least 2 years. The timeframe is calculated from the moment of obtaining the residence permit.
  5. Buying a property if, on the date of acquisition, the foreigner is entitled to statutory inheritance from the seller. In this scenario, the seller must be the owner of the real estate for at least 5 years.

Yet, you should remember that despite the statutory exemptions there are certain situations in which a permit is needed to buy a real estate. For example, buying by a foreigner a real estate located in a border zone creates such a scenario. Another example may concern buying agricultural lands with an area over 1 ha.

According to the regulations, a permit for buying real estate by foreigners who are citizens of states that are parties to the agreement on the European Economic Area or the Swiss Confederation is not required.

Buying a house in Poland. Summary

Buying a house in Poland may be stressful for both the seller and the buyer. It is worth ensuring that the content of the contract fully reflects the will of the parties and secures the interests of each of them as much as possible.

The trade in real estate with foreigners is somewhat limited by the provisions of the law. Especially, of the Act on the Acquisition of Real Estate by Foreigners. The Act provides for a special acquisition procedure that takes into account the need to obtain a relevant permit.

If this article was interesting for you and you want to know more on the topic it concerned we encourage you to contact us. Specialists from our law firm in Poland, will  be happy to help. If you are interested in company registration in Poland visit our dedicated landing page.

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