Purchasing an Agricultural Land in Poland

Poland is a large country with great potential for future development. Its natural resources make the country’s agricultural land a good investment opportunity.

The agricultural industry contributes to the country’s GDP and Poland has suitable natural conditions to produce a wide variety of cereals, vegetables, fruits and animal products such as dairy and other animal products.

Farmland prices attract investors as they are currently somewhat lower, compared to average prices in other European countries. The prices, however, are expected to align with those in the European Union.

Land purchase conditions in Poland

The Act of 24 March 1920 on Purchase of Real Estate by Foreigners and its subsequent amendments govern the conditions under which foreigners are allowed to purchase land and property in Poland.

For the purpose of the Act, a `foreign` person is:

• -       an individual who is not a Polish national;
• -       a corporate entity with its registered place of business abroad;
• -       a partnership who does not have legal personality, is registered abroad and is incorporated under foreign laws;
• -       a corporate entity with a registered place of business in Poland but governed by the entities described above.

Entrepreneurs that reside or are established in the European Economic Area must obtain a permit from the Minister of Internal Affairs in order to purchase agricultural lands. This provision is valid until May 2016. After this date, purchase conditions will become easier for foreign investors. For personalized consultancy in this matter, our Polish law firm will be at your disposal.

There are certain cases, however, in which foreign investors operating in the EAA area do not need a permit. The exceptions apply if the person has been performing agricultural activities in Poland for a certain amount of time and the desired land is located in specific areas of the country.

How to obtain land purchase permits in Poland

Permits are issued by the Director of the Department of Permits and Licenses of the Ministry of Internal Affairs, upon the authorization from the Minister of Internal Affairs. Foreigners must submit an application for the permit and the permit will be issued as an administrative decision.

The permit application must contain the applicant’s identification details, legal status, the purchased land and the seller. Also, the applicant should motivate his wish to purchase the lands and demonstrate that the purchase will be done properly.

All documents must be translated into Polish by an authorized translator.

Our Polish lawyers can offer you additional information about property purchase in Poland and help you with all the necessary documentation if you are interested in buying agricultural land in Poland. Contact us for more information.