Real estate – purchase by foreigners, leases, contracts and land registers in Kraków

Yes, if the foreigner buys a self-contained residential unit within the meaning of the Act on Ownership of Premises – such an acquisition requires no permit (Article 8(1)(1) of the Act on the Acquisition of Real Estate by Foreigners). The exemption does not apply to property in the border zone (Article 8(3)).

As a rule, yes, if the buyer is a foreigner from outside the European Economic Area and Switzerland (Article 1(1)). The permit is issued by the minister competent for internal affairs if the acquisition does not threaten defence, state security or public order and the foreigner shows ties with Poland, e.g. a residence permit, marriage to a Polish citizen or running a business (Article 1a(1)–(2)). There are also exemptions, e.g. where the foreigner has lived in Poland for at least 5 years since being granted a permanent residence permit or EU long-term resident permit (Article 8(1)(2)).

The permit is valid for two years from the date of issue (Article 3(2)). A foreigner intending to buy property may first apply for a promise to issue the permit, which is valid for one year (Article 3d(1)–(2)).

The Act does not apply to the acquisition of real estate by inheritance or a vindication legacy by persons entitled to intestate succession (Article 7(2)). If a foreigner acquires real estate under a will, they should apply for a permit within two years of the opening of the succession (Article 7(3)).

An agreement obliging a party to transfer ownership of real estate must be made in the form of a notarial deed (Article 158 of the Civil Code). A preliminary agreement must set out the essential terms of the final agreement (Article 389(1)); if it meets the requirements on which the validity of the final agreement depends, in particular as to form, the entitled party may seek conclusion of the final agreement (Article 390(2)).

Where the legal status recorded in the register differs from the actual one, the register prevails in favour of a person who acquired ownership or another right in rem by a legal act with a person entitled according to the register (public credibility of land registers, Article 5 of the Act on Land and Mortgage Registers). That protection does not cover gratuitous dispositions or an acquirer acting in bad faith (Article 6(1)), so it is worth checking the register and the documents before buying.

A lease of real estate or premises for longer than one year should be in writing; otherwise it is deemed to be for an indefinite period (Article 660 of the Civil Code). A lease for more than 10 years is deemed, after that time, to be for an indefinite period (Article 661(1)). If let premises are sold, the buyer steps into the lease and may generally terminate it observing the statutory notice periods; this does not apply if the lease was for a fixed term, in writing with a certain date, and the premises were handed over to the tenant (Article 678).

It is a lease of residential premises for a fixed term of no more than 10 years, where the landlord is an individual who does not run a business of letting premises. The agreement is accompanied, among others, by the tenant’s notarial statement submitting to enforcement and undertaking to vacate the premises, an indication of another place where the tenant can live, and the consent of its owner (Article 19a(1)–(2) of the Act on Tenants’ Rights Protection). The deposit may not exceed six times the monthly rent (Article 19a(4)).

Where the tenant is in arrears with rent or other charges for at least three full payment periods, and the landlord has warned the tenant in writing of the intention to terminate and set an additional one-month period to pay arrears and current amounts. Termination must be in writing on pain of nullity and state the reason, and is given no later than one month in advance, for the end of a calendar month (Article 11(1) and (2)(2) of the Act on Tenants’ Rights Protection). Additional provisions apply to occasional leases.

A developer agreement is concluded in the form of a notarial deed (Article 40(1) of the Act on the Protection of the Rights of the Purchaser of a Residential Unit or Single-Family House and on the Developer Guarantee Fund). A developer who starts sales must conclude a residential escrow account agreement for the given development project (Article 7(1) of that Act).