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Property Purchase In Poland
The Permit System
The Polish know only too well the massive boom in property prices that would occur if it was left to the free EU market - with farms for sale for as little as 10,000 GBP how many would you buy? As such there are a number of restrictions on what a non-Polish citizen can buy. These will be gradually phased out between 2009 (for an investment property) and 2016 (for agricultural land). Their purpose was to stop property and land becoming unaffordable to the local population which could in turn have caused high inflation.
Some web sites will tell you that you are restricted to buying so many square metres of land or x number of properties. This is infact not true. As long as you can keep getting permits you can keep on buying so if you want to buy more keep applying until your first rejection!
You might also want to consider applying for Polish nationality which would mean you could purchase without a permit. This is possible, but not guaranteed, if you have a parent or grandparent who was Polish and is an avenue well worth exploring. Contact the Polish Embassy in your country for details on eligability or speak to an English speaking solicitor based in Poland.
Who Needs a Permit
The Act on the Aquisition of Immovable Properities by Foreign Persons 1920 begins by saying, "Acquisition of immovable properties by a foreign person shall require a permit" and then goes on to list a number of exceptions. Perhaps the best summary is in the Polish Information and Foreign Investment Agencies book How to do business - Investors Guide to Poland. Below are the key extracts
A foreigner may purchase real estate only after receiving permission from the Ministry of Internal Affairs and Administration (after approved by the Ministry of Defence and, in the case of farmland, also after receipt of approval by the Minister of Agriculture)
From the day of accession to the EU (1 May 2004), foreigners who are citizens or entrepreneurs of the EEC countries do not need permission to purchase real estate...
Exceptions to the above are:
1) Farms and woodlands - permission is required during the first 12 years from the date of Poland's accession to the EU. However, permission is not required if several conditions are fulfilled: if the person who wants to purchase the real estate is a leaseholder over a defined period (7 years for western regions of Poland and 3 years for the remainder ... and if the leaseholder personally conducts agricultural activities and lives legally in Poland
2) "Second House" - permission is required during the first 5 years from the date of Poland's accession to the EU (however, permission is not required if a foreigner lives legally and continuously in Poland for 4 years or if he purchases a "second house" in order to conduct business activities in tourism services |
So in summary if you are from the EU you do not need a permit unless you are buying farmland, woodland or a second property. For farmland or woodland you don't need a permit if you can prove long term "Bonds with the Republic of Poland". This may be, for example, that you have been renting farmland and using it for agricultural purposes for several years. In other words you are an active person in Poland! You also do not need a permit for your second property as long as it will be used for touristic purposes - e.g. a bed and breakfast, etc.
For the exact restrictions visit www.paiz.pl, click the Union Jack, select Polish Law from the menu across the top and then 'Purchase of Real Estate by Foreigners' from the menu on the left hand side. Note however that there are a number of ways around the permit system such as setting up a company.
You should also check the Acquisition of Real Estate by Foreigners Act 1920 at www.mswia.gov.pl/portal/en where you will also find translated forms that you need to complete in order to get a permit.
How Long does it take to get a Permit?
The law requires that the Ministry of Internal Affairs and Administration makes a decision on an application for a permit within two months
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