For companies operating in Poland, purchasing or selling property involves additional legal and regulatory considerations. Property transactions are essential for expanding operations, setting up offices, or investing in the real estate market.
Key Steps for Companies
Legal Due Diligence
Conducting comprehensive due diligence is crucial for corporate transactions. This includes verifying property ownership, encumbrances, zoning regulations, and environmental restrictions. Companies should also review any existing lease agreements tied to the property.
Corporate Authorization
Polish law requires that corporate decisions to purchase or sell property are authorized by the company’s management board or other governing bodies, as outlined in the company’s articles of association.
Preliminary and Final Agreements
Preliminary Agreement: Similar to individual purchases, a preliminary agreement may be signed to secure the property and outline terms.
Final Agreement: Must be formalized through a notarial deed.
Tax Implications
VAT: Commercial properties may attract VAT at rates of 23% or 8%, depending on the property type.
Corporate Income Tax: Gains from the sale of property are subject to corporate income tax.
Zoning and Permits
For companies purchasing property for development or commercial use, compliance with zoning laws and obtaining necessary permits is mandatory. This is regulated by the Building Law and local zoning plans.
Financing
Corporate buyers often use loans or other financing options. Polish banks offer financing tailored to companies, but detailed documentation and creditworthiness are required.
Recent Updates for Companies
Agricultural Land Acquisition: Recent changes in law allow companies to acquire agricultural land with fewer restrictions, provided the land will not exceed a specific size.
Energy Efficiency Requirements: Corporate buyers of commercial properties must comply with the latest energy efficiency regulations as part of Poland’s alignment with EU directives.
Key Considerations for Both Individuals and Companies
Hire a Legal Expert: Property transactions in Poland can be complex, and legal advice ensures compliance and minimizes risks.
Notary Role: The involvement of a notary is mandatory and ensures the legality of all transactions.
Local Regulations: Each municipality may have additional requirements, particularly for zoning and permits.
Language Barrier: Legal documents are in Polish. It is advisable to engage a translator or bilingual legal advisor for clarity.
Conducting due diligence on properties.
Drafting and reviewing sales agreements.
Guiding you through compliance with Polish property laws.
Assisting with permit applications and zoning requirements.
Representing you in negotiations and at the notary’s office.
Recent Legal Developments
Digitalization of Land Registers: Poland has accelerated the digitalization of land registers, allowing online access to property records and streamlining the registration process.
AML Regulations: Stricter AML measures require notaries and real estate agents to verify the source of funds and the identity of buyers and sellers.
First-Time Buyer Exemptions: First-time buyers of residential property are exempt from the 2% PCC tax, provided the property is used as their primary residence.
With a thorough understanding of Polish property law and recent legislative changes, we ensure a seamless transaction process tailored to your specific needs. Let us help you secure your property with confidence.
