Buying Property in Poland as a Foreigner

Poland has long attracted foreign investors interested in its real estate market. A stable economy, growing cities, and relatively affordable prices make an increasing number of foreigners consider purchasing an apartment, house, or land within the territory of the Republic of Poland. However, before making a final investment decision, they must familiarise themselves with the applicable regulations governing property acquisition by persons who do not hold Polish citizenship. The legal system imposes certain requirements and restrictions, while simultaneously introducing a number of significant exemptions – particularly for citizens of European Union and European Economic Area member states.

The primary legal act regulating this matter remains the Act of 24 March 1920 on the Acquisition of Real Estate by Foreigners. This is one of the oldest pieces of legislation still in force in Poland, amended multiple times and adapted to changing circumstances – including Poland’s accession to the European Union. The Act is supplemented by the Regulation of the Minister of Internal Affairs of 20 June 2012, which specifies the documentation requirements for foreigners applying for permission to acquire property.

Who qualifies as a foreigner under the Act?

Polish regulations define the concept of a foreigner broadly, encompassing not only natural persons but also legal entities. According to the Act, a foreigner is defined as a natural person without Polish citizenship, a legal person with its registered office outside Poland, and a partnership without legal personality established under foreign law with its registered office abroad. Importantly, foreigner status is also attributed to commercial companies with their registered office in Poland if they are controlled by foreigners – meaning foreign persons directly or indirectly hold more than 50% of votes at a shareholders’ meeting or general meeting, or hold a dominant position within the meaning of the Commercial Companies Code.

This last category carries particular practical significance. It means that a Polish limited liability company in which the majority shareholder is, for example, a Chinese or Ukrainian citizen, formally becomes a foreigner under the Act. However, this does not automatically mean a permit is required – as explained later in this article, the company’s registered office is decisive, not its ownership structure.

The general rule: permit requirement

The fundamental principle arising from the Act is that acquisition of real estate by a foreigner requires prior authorisation. The competent authority for issuing such permission is the Minister of Internal Affairs and Administration, who acts by way of an administrative decision. A permit is required for the acquisition of ownership rights to real estate and perpetual usufruct rights, regardless of the legal basis for the transaction – whether a sale agreement, donation, exchange, or testamentary inheritance.

The obligation to obtain authorisation also extends to the acquisition or subscription of shares in commercial companies with their registered office in Poland that own or hold perpetual usufruct rights to real estate located within the territory of the Republic of Poland. This applies to situations where, as a result of the transaction, the company becomes controlled by a foreigner, or where a foreigner who previously held no shares in a controlled company becomes its shareholder.

Conditions for obtaining a permit

The Minister of Internal Affairs and Administration may issue a permit only upon cumulative fulfilment of two conditions.

• First, the acquisition of real estate by the foreigner must not pose a threat to national defence, state security or public order, nor be contrary to considerations of social policy or public health.
• Second, the foreigner must demonstrate circumstances confirming their ties to the Republic of Poland. Circumstances evidencing connections with Poland may take various forms. The Act indicates, by way of example, possession of Polish nationality or Polish origin, marriage to a Polish citizen, holding a permanent residence permit or EU long-term resident permit, membership in the management bodies of an enterprise with its registered office in Poland, or conducting business or agricultural activity in Poland in accordance with Polish law. This catalogue is not exhaustive, so a foreigner may invoke other circumstances supporting their connection to the country.

In the permit issuance process, the minister seeks the opinion of the Minister of National Defence, and in the case of agricultural property – also the minister responsible for rural development. These authorities have the right to raise objections, which prevent the issuance of a positive decision.

Procedure and required documents

Proceedings are initiated upon the foreigner’s application. The Act does not prescribe an official application form – it must be prepared independently, incorporating all required elements. The application should contain identification of the applicant along with their legal status and citizenship, detailed data identifying the property to be acquired (address, land register number, area, intended use), identification of the seller, and information about the purpose of acquisition and sources of financing.

Documents confirming the circumstances indicated in the application must be attached. For natural persons, these will typically include copies of identity documents, certificates of residence status, and documents confirming sources of income and funds for the purchase. For companies, extracts from commercial registers, articles of association or company statutes, and documents confirming ownership structure are required. Regarding the property itself, it is necessary to submit a current extract from the land register, an excerpt from the land registry, and often also a certificate of the plot’s designation in the local spatial development plan.

The application is subject to a stamp duty of PLN 1,570, which must be paid to the account of the Capital City of Warsaw before submitting the documents. Without proof of payment, the ministry will not commence examination of the case. The standard timeframe for issuing a decision is up to two months, although in particularly complex cases this may be extended.

From 1 January 2025, correspondence in cases concerning the issuance of permits is delivered in electronic or hybrid form, in accordance with the provisions of the Act on Electronic Deliveries. Professional representatives (advocates, legal advisers) and entities entered in the National Court Register are obliged to maintain an electronic delivery address.

Promise: assurance of permit issuance

In situations where a foreigner is at the negotiation stage or has not yet finalised all transaction conditions, they may apply for a promise – that is, an assurance that a permit will be issued. The promise is valid for one year from the date of issue and constitutes a guarantee that if the foreigner submits an application for a full permit based on the same factual circumstances within this period, the minister will issue a positive decision. However, the promise does not in itself authorise acquisition of real estate – after obtaining it, a full permit is still required.

Consequences of acquisition without a permit

The legislature has provided for a severe sanction for violation of the authorisation requirement: acquisition of real estate or shares without the required permit is null and void. This means that the legal act produces no effects, and in the event that a notary were to draw up a notarial deed without verifying the required authorisation, the land registry court will refuse to register ownership.

Exemptions for EU, EEA and Swiss citizens

Poland’s accession to the European Union in 2004 fundamentally changed the situation for citizens and entrepreneurs from member states. Pursuant to Article 8(2) of the Act, foreigners who are citizens or entrepreneurs of states party to the Agreement on the European Economic Area (that is, all EU states plus Iceland, Liechtenstein and Norway) and the Swiss Confederation are not required to obtain a permit for the acquisition of real estate in Poland.

This exemption is almost complete in scope. It applies to both residential and commercial properties, land and premises. A citizen of Germany, France, Italy or Spain can therefore freely acquire an apartment, house, building plot or commercial premises without any administrative formalities related to obtaining ministerial consent.

The EU treaties also extend to dependent and overseas territories of member states, such as Guadeloupe, French Guiana, Martinique, Réunion, the Azores, Madeira and the Canary Islands. Entities originating from these territories enjoy the same exemption as citizens of the parent states.

It is worth emphasising that for the exemption to apply, citizenship of an EEA state or having a registered office in its territory is sufficient. The ownership structure of the entrepreneur is irrelevant. This means that a Polish limited liability company, even if its sole shareholder is a citizen of a third country (e.g. China or Brazil), may acquire real estate without a permit because its registered office is located within the territory of the EEA.

Brexit consequences for UK citizens

From 1 January 2021, following the United Kingdom’s withdrawal from the European Union, British citizens and entrepreneurs lost their status as entities exempt from the permit requirement. The United Kingdom ceased to be a member of the European Economic Area.

Currently, British nationals intending to acquire real estate in Poland must apply for a permit under the general rules, unless they meet the conditions for one of the subject-matter exemptions. An exception applies to persons who are beneficiaries of the Withdrawal Agreement – those who, before the end of the transition period, exercised their right of residence or right to conduct business activity in a member state, retain their entitlements.

Subject-matter exemptions for all foreigners

Regardless of citizenship, the Act provides for a number of cases in which a permit is not required. The most important subject-matter exemptions include the acquisition of a self-contained residential unit within the meaning of the Act on Ownership of Premises. This means that any foreigner – including those from outside the EU – may purchase an apartment in a block or a flat in a multi-family building without a permit. The exemption also covers the acquisition of a self-contained commercial unit intended for garage use, or a share in such a unit, if this is connected with meeting the housing needs of the purchaser.

Further exemptions relate to the foreigner’s life circumstances in Poland: acquisition of real estate by a person who has been residing in Poland for at least 5 years since being granted a permanent residence permit or EU long-term resident permit; acquisition by a foreigner who is the spouse of a Polish citizen and has been residing in Poland for at least 2 years since being granted a residence permit, if the property is to constitute the spouses’ statutory joint property; acquisition of real estate from a relative entitled to intestate succession, if the seller has been the owner for at least 5 years.

Acquisition through intestate succession also does not require a permit – a foreigner who is an intestate heir may acquire real estate forming part of the estate without additional formalities. The situation is different for testamentary inheritance by persons outside the circle of intestate heirs – in such cases, the foreigner has 2 years from the opening of the succession to obtain a permit. Failure to do so results in the ownership of the real estate passing by operation of law to the intestate heirs.

Limitations on exemptions: border zone and agricultural land

Even when a foreigner qualifies for an exemption, there are categories of real estate whose acquisition always requires ministerial consent. This applies to real estate located in the border zone and agricultural land exceeding 1 hectare in area. In these cases, even a citizen of an EU state must apply for an MSWiA permit.

The border zone comprises the area of municipalities adjacent to the state border. Its precise extent is defined by separate regulations and primarily covers municipalities along the borders with Russia (Kaliningrad Oblast), Belarus and Ukraine. This restriction is strategic in nature and relates to the protection of state security.

In the case of agricultural real estate, the provisions of the Act on the Shaping of the Agricultural System additionally apply, which impose their own restrictions on trading in agricultural land – regardless of the purchaser’s citizenship.

Area limits

When acquiring real estate for residential purposes, the Act introduces an area limit. The area of real estate acquired by a foreigner for the purpose of meeting their living needs may not exceed 0.5 hectares, and in the case of a married couple – 1 hectare. Acquisition of real estate with a larger area is possible only for the purpose of conducting business or agricultural activity on it, and in such cases the area must be justified by the actual needs arising from the nature of the planned activity.

Practical guidance for investors

A foreigner planning to purchase real estate in Poland should first establish whether a permit is required in their case. Citizens and entrepreneurs from EU, EEA and Swiss states may in most cases proceed directly with the transaction. Other foreigners should consider whether the property being acquired is not subject to a subject-matter exemption – purchasing an apartment in a multi-family building does not require consent regardless of the purchaser’s citizenship.

If a permit is necessary, it is advisable to gather the required documentation in advance and realistically estimate the procedure time. The waiting period for a decision may be several months, which should be taken into account in negotiations with the seller. The permit relates to a specific property, so if the transaction does not proceed, the procedure must be repeated for another property.

It may be helpful to first apply for a promise, which will secure the possibility of obtaining consent and allow for more confident negotiation of transaction terms. It is also worth using professional legal advice – both for verifying the legal status of the property and for preparing the application to the ministry.