Polish law imposes specific restrictions on foreigners purchasing real estate, requiring ministerial approval in most cases.
Legal Basis for the Acquisition of Real Estate by Foreigners
The rules for acquiring real estate by foreigners are regulated by the Act of March 24, 1920, on the acquisition of real estate by foreigners (as amended, Journal of Laws of 2017, item 2278). This Act specifies when a foreigner can acquire real estate without restrictions and when permission from the minister competent for internal affairs is required.
These provisions have a special character compared to the general rules of real estate transactions resulting from the Civil Code.
Who is Considered a Foreigner?
Under the Act on the acquisition of real estate by foreigners, a foreigner is considered as:
When Does a Foreigner Need Permission to Purchase Real Estate?
As a rule, a foreigner needs permission from the Minister of Internal Affairs and Administration to acquire real estate located in the territory of the Republic of Poland.
Permission takes the form of an administrative decision and is issued upon the foreigner’s application, after obtaining the opinion of the Minister of National Defense and – in certain cases – the minister competent for rural development.
Exceptions to the Requirement to Obtain Permission
The Act provides numerous exceptions where the acquisition of real estate by a foreigner does not require obtaining permission, particularly when:
Procedure for Obtaining Permission to Acquire Real Estate
The proceedings for issuing permission include:
Permission is issued for a specified period and concerns a specific property.
Acquisition of Real Estate and Legalization of a Foreigner’s Stay and Work
Acquiring real estate in Poland does not automatically legalize the stay or work of a foreigner. Property rights are independent of the regulations governing the stay and employment of foreigners.
At the same time, the fact of owning real estate may be one of the elements confirming the foreigner’s ties with Poland, which is taken into account in proceedings concerning:
Consequences of Acquiring Real Estate Without Required Permission
The acquisition of real estate by a foreigner in violation of the provisions of the Act on the acquisition of real estate by foreigners results in the invalidity of the legal act. This means that the sales contract or other dispositive act does not produce legal effects.
Summary
Transactions in real estate with the participation of foreigners in Poland are permitted, but are subject to special restrictions. It is crucial to determine whether in a given case permission from the Minister of Internal Affairs and Administration is required and whether statutory exceptions apply. The acquisition of real estate does not replace the procedures for legalization of stay and work, although it may have auxiliary significance in administrative proceedings.
FAQ – Acquisition of Real Estate by Foreigners
Yes, in most cases, the acquisition of a separate residential unit does not require permission.
As a rule, no.
No. Property rights do not legalize stay or work.
Permission is issued by the Minister of Internal Affairs and Administration.
The act is void by operation of law.