1. Registration of Title for Companies

The process of registering title for companies is similar to that for individuals but involves additional documentation and compliance requirements.

Key Steps for Registration:

Purchase Agreement: The company must sign a notarized purchase agreement, which should include details of the company’s legal representation.

Application Submission: The application is submitted to the local district court. Required documents include:

• Notarized purchase agreement.
• Company registration documents (KRS extract).
• Proof of payment of property tax.
• Surveyor’s report (if applicable).
• Resolution from the company’s board authorizing the purchase.

Court Verification: The court verifies the documents and ensures there are no legal disputes or encumbrances on the property.

Entry in the Land Register: Once approved, the company’s name is entered into the Land and Mortgage Register as the legal owner.

Recent Legal Updates:

• Digitalization: Companies can now access and submit documents through the electronic Land and Mortgage Register system.
• AML Compliance: Companies must declare the source of funds for property transactions exceeding €15,000.
• Faster Processing: The 2021 amendment reduced the registration timeline to approximately 30 days.

2. Freehold Property Management for Companies

Managing freehold property as a company involves additional responsibilities, particularly in terms of taxation, leasing, and compliance.

Key Aspects of Management:

Property Maintenance: Companies must ensure the property complies with local building codes and safety regulations.

Leasing: If leasing the property, companies must:

• Draft a written lease agreement compliant with Polish Tenancy Law.
• Register the lease with the tax office.
• Comply with VAT regulations (if applicable).

Tax Obligations: Companies must pay:

• Property Tax: Levied by local municipalities, typically ranging from 0.03% to 0.09% of the property’s value.
• Corporate Income Tax: Rental income is subject to a 19% tax rate.
• VAT: Commercial leases are subject to a 23% VAT rate, which must be declared and paid.

Sale of Property: When selling, companies must:

• Provide a valid Energy Performance Certificate (EPC).
• Pay a 2% civil transaction tax on the sale value (if the property was owned for less than 5 years).
• Pay corporate income tax on any capital gains.

Recent Legal Updates:

• EPC Requirements: Since 2021, all properties must have an up-to-date EPC before sale or lease.
• VAT on Leases: The 2022 amendment clarified VAT obligations for commercial leases, ensuring compliance with EU regulations.
• AML Compliance: Companies must maintain detailed records of property transactions and report suspicious activities.

For companies in Poland, the registration of title and management of freehold property requires careful attention to legal and tax obligations. By leveraging recent legal reforms and digital tools, companies can streamline processes, ensure compliance, and optimize their real estate investments.