Acquisition of real estate by a foreigner in Poland – a comprehensive guide

The acquisition of real estate by a foreigner in Poland is a process regulated by the provisions of the Polish Act on the Acquisition of Real Estate by Foreigners and the Regulation of the Minister of Internal Affairs of 20 June 2012 on detailed information and types of documents that a foreigner applying for a permit to acquire real estate is required to present. Obtaining consent for the acquisition of real estate in Poland by a foreigner is a prerequisite for the transfer of ownership of the property, as without a positive decision, the transaction is invalid and has no legal effect. In practice, this means that the foreigner does not obtain legal title to the property.

A practical example from Polish case law:

‘The acquisition of real estate on the basis of a legal transaction carried out without the required permit still results in the absolute invalidity of the legal transaction’ (the Polish Supreme Court resolution of 25 June 2008, file ref. no. III CZP 53/08).

Permission for a foreigner to acquire real estate is issued by way of a decision of the Minister of Internal Affairs and Administration, after administrative proceedings initiated at the request of the foreigner. As a rule, the application is submitted after the conclusion of a preliminary agreement for the purchase of real estate in Poland in Poland or a development agreement concerning real estate. The permit for the purchase of real estate in Poland is valid for two years from the date of issue of the decision.

The obligation to obtain consent from the Polish Ministry of Internal Affairs and Administration for the acquisition of real estate applies to all forms of real estate acquisition, i.e. both purchases from private individuals (on the secondary market) and developer transactions (on the primary market), as well as the acquisition of shares in real estate.

In this publication, we present a practical guide on how to apply for the acquisition of real estate by a foreigner.

Who is considered a foreigner under Polish law?

According to the Polish Act on the Acquisition of Real Estate by Foreigners, any natural or legal person who does not have Polish citizenship, as well as legal entities controlled by foreigners, are required to obtain a permit from the Minister of Internal Affairs and Administration to purchase real estate before they can legally become owners of real estate in Poland.

Detailed considerations regarding who is a foreigner within the meaning of the Polish Act on the Acquisition of Real Estate by Foreigners are presented in this publication, but in general it can be assumed that these are persons who do not have Polish citizenship and entities which, due to their structure or place of residence, are treated as foreign under the provisions of the Polish Act on the Acquisition of Real Estate by Foreigners.

Importantly, possession of a residence card does not automatically confer Polish citizenship or domestic status, which means that a valid residence card does not exclude a person from the category of ‘foreigner’ within the meaning of the Polish Act on the Acquisition of Real Estate by Foreigners. Furthermore, getting married in Poland and having a community property regime also does not mean that a foreigner does not need to obtain a permit, regardless of who formally signs the preliminary agreement.

A practical example from Polish case law:

‘For the acquisition of real estate – under the amended Polish Act on the Acquisition of Real Estate by Foreigners, by a spouse of a Polish citizen with effect on joint property, it is necessary to obtain a permit by the spouse – a foreigner, even in a situation where the party to the legal transaction is only the spouse – a Polish citizen’ (judgment of the Polish Supreme Administrative Court of 28 October 2015, ref. no. II OSK 370/14).

Required documents for foreigners purchasing real estate in Poland

The Regulation of the Minister of Internal Affairs on detailed information and types of documents that a foreigner is required to submit when applying specifies which specific documents should be attached to an application for the purchase of real estate in Poland by a foreigner. These documents can be divided into three main groups, each of which plays an important role in the process of considering an application for acquisition by the Ministry of Internal Affairs and Administration. The correct preparation and completion of documents together with the application affects the assessment of whether the statutory conditions for the acquisition of real estate have been met. Failure to submit a complete set of required documents and information will result in a negative decision by the authority.

Acquisition of real estate by a foreigner – documents concerning the real estate being acquired

The first group of documents attached to the application for the acquisition of real estate by a foreigner in Poland includes documents and information relating to the factual and legal status of the real estate that the foreigner intends to acquire.

First and foremost, the application must be accompanied by a preliminary property sale agreement or a development agreement, which form the basis for the assessment of the planned transaction by the Ministry of Internal Affairs and Administration. These documents contain information about the parties to the transaction, the price of the property, the date of transfer of ownership and any other terms and conditions and obligations of the parties that are relevant to verifying the compliance of the purchase with the provisions of the Polish Act on the Acquisition of Real Estate by Foreigners.

In addition, the application must also be accompanied by other documents relating to the property, such as:

• a copy (copies) from the land and mortgage register,
• an extract and excerpt (extracts and excerpts) from the land register,
• information on the applicable local spatial development plan (or information on the absence of an LSDP),
• possibly a decision on the location of a public purpose investment,
• documents concerning any mortgage encumbrances and easements on the property.

In addition, one of the key documents is a statement by the seller(s) in which they unequivocally declare that they consent to the sale of the property to a foreigner, although this obligation is already explicitly stated in the preliminary agreement.

The Polish Ministry of Internal Affairs and Administration pays particular attention to the compliance of documents with the data contained in the land and mortgage register and the extract and excerpt from the land register, as well as to confirmation that the seller has full rights to dispose of the property. Therefore, if there are any discrepancies in the documentation concerning the legal status of the property before submitting an application to the Polish Ministry of the Interior and Administration for the purchase of real estate in Poland by a foreigner, they must be removed at the stage preceding the submission of the application. Of course, this obligation rests with the seller and not with the foreigner. Otherwise, the applicant may be asked to supplement the deficiencies, which will delay the entire process, or even a negative decision may be issued by the Polish Ministry of Internal Affairs and Administration due to the lack of required compliance and completeness of the documents attached to the application for purchase.

The application must also specify the type of legal event on the basis of which the property will be purchased.

Purchase of real estate in Poland by a foreigner – personal and legal situation of the applicant

The second group of documents attached to the application for the purchase of real estate in Poland by a foreigner concerns the personal and legal situation of the applicant(s).

First and foremost, in this regard, the applicant is required to prove their permanent ties with Poland. Details regarding the circumstances under which a foreigner may be considered to have sufficient ties with Poland, and those under which they may not, are described in more detail in this publication. In general, the authority thoroughly analyses, among other things: the length of stay in Poland, employment or business activity in the country, the existence of family ties, including possible ancestors, education and any other circumstances indicating permanent ties with Poland, such as holding a Polish Card.

In addition to demonstrating the foreigner’s permanent ties with Poland, the applicant must prove the legality of their stay in Poland and their legal status, citizenship, address of residence, date and place of birth, etc.

In the case of the acquisition of real estate by foreign nationals who are legal persons, it is necessary, first and foremost, to provide information and documents concerning the capital structure of the company and the persons exercising control over the entity.

Acquisition of real estate by a foreigner – possession of funds for the acquisition of real estate and the legality of their origin

The third group of documents attached to an application for the acquisition of real estate by a foreigner in Poland are documents concerning the financing of the real estate. Our experience shows that the Polish Ministry of the Interior and Administration analyses the method of financing the real estate, the legality of the origin of the funds and their adequacy particularly thoroughly. Depending on the method of financing, the authority requires a number of documents to be submitted by foreigners buying property in Poland, such as:

1. employment contracts,
2. bank statements,
3. PIT forms obtained in Poland and abroad (in the case of financing transactions from funds earned abroad),
4. loan agreement/loan decision,
5. statements from the employer regarding the foreigner’s earnings,
6. JPK V7M/V7K declaration forms for goods and services tax (in the case of financing the purchase from funds obtained as part of a sole proprietorship), or financial statements (in the case of companies).

In our experience, it is this part of the application that causes applicants the most difficulty in many cases. Imprecise or incomplete information may result in the need to supplement the application for purchase, and in many cases lead to a negative decision by the Ministry of the Interior and Administration. Therefore, it is extremely important that all financial information is presented accurately and supported by relevant evidence.

Duration of the procedure for foreigners purchasing real estate in Poland

Our experience shows that the duration of the procedure for the acquisition of real estate by a foreigner in Poland is between two and four months from the date of submission of a complete application. Of course, the more carefully the application is prepared, the shorter the time taken by the Polish Ministry of Internal Affairs and Administration to consider it.

Importantly, the waiting time for a decision does not include delays caused by the applicant, such as failure to provide documents or imprecise wording of the application, or periods of suspension of proceedings. In the case of an incomplete application, the Polish Ministry of the Interior and Administration sends the applicant a list of additional questions. Each round of questions asked by the Polish Ministry of the Interior and Administration and the applicant’s responses may take up to several weeks. In order to shorten the waiting time and minimise the risk of requests to supplement the application, it is necessary to carefully prepare the application and accompanying documents.

In exceptional circumstances, particularly when the agreed date for the conclusion of the property transfer agreement is approaching, the applicant may submit a request to expedite the proceedings for the acquisition of real estate by a foreigner.

It is also worth noting that, starting from 1 January 2025, correspondence in cases concerning the issuance of permits for the purchase of real estate in Poland by foreigners will be delivered in electronic form, with the exception of decisions, which may be delivered in paper form if the party submits such a request before the decision is issued. At the same time, if the applicant is represented by a solicitor or legal adviser, all communication with the authority is much more efficient. A professional representative receives letters via an ICT system, which eliminates the need to wait for traditional postal deliveries and speeds up the proceedings. In the case of applicants acting independently, correspondence is sent in the traditional manner, i.e. by the Polish Post Office.

Fees and costs for acquiring real estate in poland

The procedure for obtaining a permit also involves administrative costs. Stamp duties include:

• PLN 1,570 – for issuing a permit for the acquisition of real estate by a foreigner,
• PLN 98 – for issuing a promise of a permit for the acquisition of real estate by a foreigner,
• PLN 17 – for issuing a certificate,
• PLN 17 – for granting power of attorney in the case of representation of the applicant by a proxy.

The fees should be paid to the account of the City of Warsaw – Taxpayer Service Centre, clearly indicating the applicant in the transfer title.

Certified translations and form of documents

All documents drawn up in a foreign language that are attached to an application for a permit for the purchase of real estate in Poland by a foreigner must be submitted in a language that is understandable to the administrative authority. For this reason, foreign-language documents must be submitted in the original together with a translation into Polish made and certified by a sworn translator. Certified translations of documents will apply in particular to:

• registration documents of foreign companies,
• documents confirming the legal status or personal situation of the applicant (e.g. copies of civil status records),
• financial documents, including equivalents of Polish PIT forms,
• contracts or other attachments in a foreign language required by the Polish Ministry of Internal Affairs and Administration for the assessment of transactions,
• statements from accounts held abroad.

Form of documents attached to an application for the purchase of real estate in Poland by a foreigner

If the documents attached to the application for the purchase of real estate in Poland by a foreigner are not originals, the copies of the documents must be certified as true copies of the originals. In practice, this means that if the proceedings are conducted by a solicitor or legal adviser, the copies of the documents may be certified directly by them as a professional representative. However, if the   foreigners buying property in Poland act independently, the copies should be certified by a notary public.

Promise of permit to purchase real estate in Poland

The Polish Act on the Purchase of real estate in Poland by Foreigners also provides for the possibility of issuing a so-called promise for the purchase of real estate in Poland by a foreigner.

A promise is an administrative decision which constitutes a pledge to issue a permit for the acquisition of real estate by a foreigner in Poland. It is valid for one year and guarantees that during this period the authority will not refuse to issue a permit, unless the facts of the transaction, the real estate or the applicant’s situation change significantly. In this case, the promise will expire. However, if the changes in the facts do not have a significant impact on the outcome of the case, the promise to purchase real estate will remain in force.

In practice, the issuance of a promise has limited significance in trade, as foreigners generally submit applications for permission to purchase real estate immediately. However, the legal institution of a promise may be applicable, for example, in a situation where:

• a foreigner, for various reasons, cannot submit an application for a permit to purchase real estate,
• the legal status of the real estate to be transacted is not regulated,
• a foreigner wants to purchase real estate by auction,
• the foreigner intends to purchase a separate part of the property in a situation where the geodetic division has not yet been completed.

However, after the Polish Ministry of Internal Affairs and Administration issues a promise, in order for a foreigner to actually purchase real estate, it is necessary to submit an application for consent from the Polish Ministry of Internal Affairs and Administration on the basis of the promise. Therefore, our experience shows that situations where a foreigner should first apply for a promise and only then for the relevant consent from the Polish Ministry of Internal Affairs and Administration are extremely rare.

A practical example from Polish case law:

“A foreigner holding a promise does not obtain a permit to purchase real estate, but receives a special guarantee in the form of a promise to issue a permit to purchase real estate, which is specified in the promise of a permit. The decision in question does not have any material legal effects and therefore does not entitle the addressee of the promise to purchase real estate. Therefore, before purchasing real estate, they are required to obtain a permit, which, in the case of a prior promise, should be done unless the facts relevant to the case change.” (judgment of the Polish Provincial Administrative Court in Warsaw of 3 October 2013, ref. no. IV SA/Wa 1630/13).

Appealing a negative decision by the Polish Ministry of Internal Affairs

The decision of the Polish Minister of Internal Affairs and Administration regarding consent for the purchase of real estate in Poland by a foreigner is discretionary. In practice, this means that the authority assesses all the circumstances of the case, but acts within the framework of the following regulations:

• the Polish Act on the purchase of real estate in Poland by foreigners,
• the Regulation of the Polish Minister of Internal Affairs of 20 June 2012 on detailed information and types of documents that a foreigner applying for a permit to purchase real estate is required to submit,
• the Polish Code of Administrative Procedure.

However, the discretion of the authority does not mean arbitrariness; the official conducting the case on behalf of the Polish Minister of Internal Affairs is obliged, in the course of the proceedings, to take into account the factual and legal circumstances of the case, the applicable legal norms, the rules of administrative procedure set out in the Polish Code of Administrative Procedure, including the proportionality between the public interest and the legitimate interest of the party, and the prohibition of arbitrariness on the part of the authority.

If the Polish Ministry of the Interior and Administration issues a negative decision, the foreigner has two means of appeal at their disposal:

1. within 14 days of the date of delivery of the decision, the applicant may request the Ministry of Internal Affairs and Administration, as the authority conducting the proceedings, to reconsider the case (Article 129 § 2 in conjunction with Article 127 § 3 of the Polish Code of Administrative Procedure),
2. If the applicant does not wish to exercise their right to request a reconsideration of the case, they may lodge a complaint against the decision with the Provincial Administrative Court in Warsaw within 30 days of its delivery. The complaint shall be lodged through the authority that issued the contested decision, i.e. the Polish Ministry of the Interior and Administration (Article 53 § 1 and Article 54 of the Polish Act on Proceedings before Administrative Courts).

Appeals against negative decisions of the Polish Ministry of the Interior and Administration most often concern procedural irregularities or substantive errors that may have affected the outcome of the proceedings. In particular, they may include:

• incorrect assessment of the evidence,
• omission of relevant evidence submitted by the foreigner,
• insufficient justification of the decision by the authority,
• arbitrariness of the decision, i.e. incorrect recognition that the negative conditions listed in Article 1a(1)(1) of the Act on the Nationality of Polish Citizens, which prevent the issuance of a permit for acquisition, are met,
• violation of the rules of administrative procedure set out in the Polish Code of Administrative Procedure, e.g.
  • Article 7 of the Polish Code of Administrative Procedure – obligation to thoroughly clarify the facts,
  • Article 77 § 1 of the Polish Code of Administrative Procedure – obligation to collect and examine all evidence,
  • Article 8 of the Polish Code of Administrative Procedure – principle of trust in state authorities,
  • Article 9 of the Polish Code of Administrative Procedure – the obligation to properly inform the party,
  • Article 11 of the Polish Code of Administrative Procedure – the obligation to properly justify the decision.

Typical substantive legal objections include pointing out that the authority incorrectly assessed the existence of grounds for issuing a permit, e.g.:

• lack of a reliable assessment of the foreigner’s ties with Poland,
• unjustified questioning of the financing of the property purchase transaction,
• erroneous findings regarding the impact of the property purchase on national defence or security.

In many cases, a successful appeal against a decision of the Polish Ministry of the Interior and Administration consists in demonstrating that the authority could, but was not obliged to, issue a negative decision, and that the analysis of the case was incomplete or biased.

A practical example from Polish case law:

“The legal basis for deciding whether to grant a foreigner a permit to purchase real estate is Article 1(1) of the Polish Act on the Acquisition of Real Estate by Foreigners. This provision does not contain any substantive criteria for issuing such a permit, which means that the decision on this matter is left to the discretion of the Minister of the Interior and Administration. Although administrative discretion is not excluded from the control of the administrative court, this control is limited and essentially boils down to examining whether the rules of procedure have been violated in a manner that could have a significant impact on the outcome of the case, and whether the decision falls within the limits of discretion set by law and is not a manifestation of arbitrariness on the part of the administrative authorities. The discretion of the decision must in each case fall within the limits set out in the provisions of generally applicable law, as well as maintain a balance between the public interest and the legitimate interest of the party”. (judgment of the Polish Provincial Administrative Court in Warsaw of 24 February 2011, ref. no. V SA/Wa 2265/10).

Summary – how to buy property in Poland as a foreigner

The acquisition of real estate by a foreigner in Poland is a process that requires careful preparation, and its proper execution depends primarily on the completeness of the documentation and the compliance of the application with the requirements of the Polish Act on the Acquisition of Real Estate by Foreigners. The lack of a permit from the Polish Ministry of Internal Affairs and Administration renders the transaction absolutely invalid, which is why all foreigners – both natural persons and legal entities controlled by foreigners – should prepare the documents properly before concluding the contract transferring ownership.

The process of obtaining a permit requires the submission of three key groups of documents:

1. documents relating to the property,
2. documents relating to the applicant’s personal and legal situation,
3. documents confirming the availability of financial resources and the legality of their origin.

In practice, applicants have the greatest difficulty in proving the legality and source of their financial resources and their permanent ties with Poland. It is these areas that most often result in requests to supplement the application or in a negative decision.

Administrative proceedings conducted before the Polish Ministry of the Interior and Administration usually take between two and four months from the date of submission of a complete application. Careful preparation of documentation can significantly shorten this time and minimise the risk of additional questions from the authority. From 1 January 2025, correspondence in such cases will, as a rule, be delivered electronically, which will particularly streamline the procedure when acting through a professional representative.

The entire procedure, although complex, is fully feasible with proper preparation. A complete, precise and logically justified application, supported by appropriate documentation, allows you to effectively obtain the consent of the Polish Ministry of the Interior and Administration and safely carry out the transaction of purchasing real estate in Poland.