Five years have already passed since Poland joined the European Union. Since the 1st of May 2009, according to the regulation of article 8, clause 2 of the Act on purchasing real estates by foreigners, it is not required to obtain a permission to purchase the so-called second house by foreigners who are citizens or businessmen coming from countries – parties of the agreement on European Economic Area or Swiss Confederation.

Till the 1st of May 2009 the interpretation of the following expressions: “second home” and “permanent place of residence” caused difficulties. As it is was indicated in article 2 clause 3 of the Act, “second home” is a real estate built for housing or recreation / leisure purposes which does not constitute a permanent place of residence for a foreigner (excluding independent residential premises as comprehended by the act of the 24th of June 1994 on property of premises). Since the beginning of May all the doubts have disappeared.


Will the removal of barriers lead to the increase of purchasing real estates by foreigners?
849 application forms applying for permissions to purchase real estates were received from foreigners by Minister of Internal Affairs and Administration in 2008. The Ministry issued 580 permissions to purchase real estates, including 514 to purchase land properties. In the same year Minister of Internal Affairs and Administration issued in total 160 decisions refusing foreigners to be given a permission to purchase real estates. The total area of land properties covered by permissions was equal to 1284,7214 ha, including the total area of 1149,05 ha for corporate entities, and the total area of 134,351 ha for physical entities and the total area of 1,3212 ha for diplomatic branch offices of foreign countries. These permissions referred mostly to real estates situated in the following provinces: dolnośląskie (lower silesian) and lubuskie Voivodship. All the data refer both to the right of ownership to a particular real estate as well as to the right of perpetual usufruct.

As it can be concluded when analysing the graphs, after a wide interest in real estates by foreign corporate entities at the time when Poland entered the European Union in 2004 and several consequent years of less interest in them, Poland has still been an attractive place to invest into real estates. The decrease in the number of application forms results probably from two causes: firstly, the closer the removal of barriers in purchasing real estates by foreigners, the more inclination to wait and omit the officials. Secondly, since 2004 the differences in prices per 1 square metre in Poland and in the Western European Countries have been minor.

In the forthcoming quarters we will get to know how far limitations resulted from the Act of purchasing real estates by foreigners which has been in force since 01-05-2009, hindered purchasing real estates. Having regard to the crisis prevailing at the capital markets of the Western European Countries, it should be judged that investors (corporate entities) will not increase their interest in real estates in Poland but physical entities will increase the area of land properties possessed by them.

As it can be concluded from the statement of Minister of Internal Affairs and Administration from 2008, permissions to purchase land properties by foreigners with the largest area was issued for the dolnośląskie (lower silesian) voivodship; previously in previous years the provinces were as follows: opolskie, mazowieckie, świętokrzyskie and wielkopolskie voivodships.


The barriers which were removed on the 1st of May 2009 do not eliminate all the limitations in purchasing real estates in Poland by citizens or businessmen coming from the countries of the European Economic Area. Foreigners willing to purchase and own an agricultural or forest property in Poland will still have to apply for a permission up to the 1st of May 2016 (article 8, clause 2, point 1 of the Act on purchasing real estates by foreigners). It should be remembered that the barriers which have been already removed as well as these which will be removed in the future refer to citizens and businessmen coming from the countries of the European Economic Area. Physical and corporate entities coming from outside the countries of the European Economic Area will have to still apply for a permission for purchasing real estates in Poland.

It can be noticed in the nearest future how many foreigners from the European Economic Area will be willing to invest their money in the so-called second house in Poland. In the past, at relatively low prices of flats, foreigners purchased for rent several, sometimes up to a dozen or so, flats as investments, achieving their profits at the so-called peak. It can be different with the so-called second houses as the countries of the European Economic Area have currently suffered the crisis and, secondly, the value of real estates in Poland is close to the one of real estates located in the countries of the European Economic Area.

Robert Naborczyk
WGN Real Estate
Source: Property Jornal Polska Giełda Nieruchomości 06-07/09