Selling a flat to a foreigner

Every year more and more foreigners come to Poland. Many of them decide to settle here permanently or to base their business here. What should you pay attention to when a citizen of another country decides to buy your flat?

• Foreigner – who exactly?
• Citizenship matters when selling a property
• Who needs a permit?
• In the border zone everyone needs a permit
• Is a permit also needed for the land attached to the flat?
• Which country's law applies when selling a flat?
• In what language should the agreement and the deed be drawn up?

Foreigner – who exactly?

We usually associate foreigners with people who do not hold Polish citizenship. However, you should know that, in legal terms, the term also covers companies and organisations with their registered office outside our country, or controlled by natural persons or legal entities from other countries.

Citizenship matters when selling a property

When selling flats to foreigners, their citizenship is of key importance, because transactions with individuals or businesses from the European Economic Area and Switzerland take place on the same terms as with Poles. The situation becomes more complicated, however, when the property is to be acquired by a citizen of a country outside the EEA, although even then there are some exceptions.

Who needs a permit?

As a rule, a foreigner must obtain a permit from the Minister of the Interior and Administration before buying a property in Poland. There are, however, several exceptions to this rule. A permit is not required when the subject of the transaction is a self-contained residential unit (which may also include a cellar and an attic) and a garage, intended to meet the buyer's housing needs.

Nor do foreigners who have lived in Poland for at least 5 years since obtaining a permanent residence permit or an EU long-term resident's permit need to apply for consent to buy a property. In this case, what matters is that this period has really elapsed since the permit was obtained, because the actual length of stay in our country is irrelevant here. And if the foreigner is the spouse of a Polish citizen, this period is shortened to 2 years.

In the border zone everyone needs a permit

The above exemptions do not apply, however, in the border zone. A foreigner who wants to buy a flat in this area must obtain a permit from the minister without exception. The zone covers municipalities in 12 of the 16 voivodeships in Poland. In the Silesian Voivodeship it includes such towns as Wisła, Ustroń, Szczyrk, Cieszyn, Racibórz, Jastrzębie-Zdrój, Wodzisław Śląski and Żory. If your flat is in the border zone, the foreigner will have to present the relevant permit before buying it. A transaction concluded without the minister's prior consent will be invalid.

READ ALSO – SELLING A PROPERTY AND THE ENRICHMENT TAX

Is a permit also needed for the land attached to the flat?

Under the regulations, foreigners from outside the EEA and Switzerland must apply for a permit if they want to buy land. This matters when a flat is sold together with a share in the plot beneath the building. In that case, the notary drawing up the agreement may ask to see the minister's consent, but this will not be necessary if it is shown that the land is attached to the residential unit and is not a separate property.

Which country's law applies when selling a flat?

It may happen that a foreigner buying our flat will want the agreement to state that any disputes will be resolved under the law of his or her country of origin. This is not possible, because real estate is always governed by the law of the country in which it is located. Nor can the agreement freely specify which court will hear disputes. The competent court will always be the one in whose district the property is located.

In what language should the agreement and the deed be drawn up?

Polish law also requires the agreement to be drawn up in Polish if one of the parties is a Polish citizen. It is, however, possible to prepare the agreement in two languages and to specify which version will be the basis for interpretation in the event of a dispute. For this reason, it is a good idea to have the translation done by a sworn translator, in order to avoid translation errors that could later cause problems in interpreting the provisions of the agreement.

The notarial deed (akt notarialny) may also be drawn up in two languages (one of which must be Polish) if a party to the agreement so requests. The notary, on the other hand, is obliged to translate the deed if one of the parties does not speak Polish.

Selling a flat to a foreigner is simpler than selling other types of property. Even so, it is worth turning to specialists for help in completing all the formalities, which can cause a great deal of difficulty even in agreements between Poles. REMAX Gold will gladly share its knowledge and experience in this area with you. We encourage you to contact us.