Buying property in Poland as a foreigner – when is a permit required?

According to Polish law, as a rule, any purchase of real estate by a foreigner requires the permission of the Minister of Internal Affairs and Administration (MSWiA). This obligation applies primarily to citizens of countries outside the European Union, European Economic Area (EEA) and Switzerland. In other words, if the buyer does not hold Polish citizenship or citizenship of the EU/EEA/Switzerland, they must obtain the appropriate permit before acquiring the property.

It is worth noting that the statutory concept of a “foreigner” covers not only individuals, but also legal entities and partnerships controlled by foreigners. For example, a Polish company based in Poland that is controlled by foreign shareholders is also treated as a foreigner and is subject to the same restrictions.

UK nationals after Brexit are treated as third-country nationals, which means they must obtain a permit to purchase a house or land in Poland (unless they meet other conditions for exemption). In other words, a UK citizen planning to acquire property in Poland should submit an application for a permit under the general rules.

Which Properties Can Be Purchased Without a Permit?

There are several exceptions where, despite having foreign citizenship, no permit is required to purchase real estate in Poland. Below are the most important situations in which a foreigner can acquire property without a permit:

• Flat/apartment (self-contained residential unit) – a foreigner may freely buy a self-contained residential unit (e.g. a flat/apartment in a block of flats) together with shares in common areas without seeking the ministry’s consent.
• It is important to distinguish the purchase of a flat with shares in common areas from the purchase of a property that includes a share in land (such as an access road to the building). In the first case, no permit is required, whereas acquiring a share in the land necessitates MSWiA consent. Before signing a preliminary agreement, it is advisable to carefully check what type of share is included in the purchase to avoid unforeseen complications.
• Citizens of the EU/EEA/Switzerland – full freedom to purchase real estate in Poland.
• Garage or share in a garage – a garage or parking space can be purchased along with the flat without a permit.
• Long-term residents – foreigners who have held a permanent residence permit in Poland for at least 5 years.
• Spouse of a Polish citizen – if the foreigner has resided in Poland for at least 2 years on the basis of a permanent residence permit.
• Statutory inheritance – real estate inherited from a family member (under laws of intestacy) without the need for a permit.
• Purchase through enforcement proceedings – for example, acquiring a property via a bailiff auction (such as a property taken over by a bank).

Note: Even in the above cases, MSWiA consent is required if the property is located in a border zone or is agricultural land over 1 hectare.

Mortgage Loans and Purchasing Property as a Foreigner

Do Banks Require the MSWiA Permit?

Banks in practice do not require the client to present the MSWiA permit decision before the mortgage is disbursed, even if the property in question is subject to a permit requirement. However, this does not mean that a foreigner can buy the property without meeting this condition – a notary will not execute the notarial deed (final sale contract) without the required permit, which will stall the entire transaction and the release of the loan. Banks only expect the executed notarial deed as evidence of sale, and any formal issues related to the permit remain the responsibility of the buyer and the notary.

How Is the Mortgage Process for Properties Requiring Ministry Approval?

For foreign buyers who must obtain a permit to purchase property in Poland, proper planning of the entire process is crucial. It is advisable to seek the assistance of an experienced mortgage broker, who can help set optimal timelines and provisions in the preliminary contract. This way, the transaction is as protected as possible against potential complications in obtaining the MSWiA permit. A professional adviser will ensure that the preliminary agreement contains appropriate conditions enabling withdrawal from the transaction without loss in the event of a permit being denied or the administrative procedure dragging on.

Secondary Market (Resale Properties): Typically, on the secondary market a foreign buyer signs a preliminary purchase agreement, then submits an application for the permit to the MSWiA and a mortgage application to the bank. The Ministry may require a mortgage approval or a signed loan agreement before issuing the final permit decision. The bank can issue a conditional loan approval, but it will not disburse funds until the notarial deed is signed. If a permit is required, the whole process can be extended by several months.

Primary Market (New Developments): In the case of buying from a developer (primary market), banks’ practices are different. After signing a development contract (an agreement with the developer), the foreign buyer submits a mortgage application and, after receiving approval, signs the loan agreement. For disbursement of the loan tranches, most banks do not require an MSWiA permit at that stage. The Ministry’s consent is only required when it comes time to conclude the final notarial contract with the developer.

Key Bank Requirements for Foreign Buyers

The largest banks in Poland grant mortgages to foreigners on terms similar to those for Polish citizens. The key requirements are:

• Stable income in Poland – Proof of a steady income earned in Poland.
• Creditworthiness – Sufficient financial standing and ability to repay the loan (usually determined by income, existing debts, etc.).
• Legal residency status – A valid legal residence in Poland (e.g. residence permit or long-term visa).
• Credit history – A track record of credit (credit score or history), often preferably within Poland or internationally.

Summary

Buying property in Poland as a foreigner is possible, but in some cases it requires additional formalities. It’s important to check whether an MSWiA permit is needed and to take steps to obtain it well in advance, in order to avoid delays in the purchase and financing process.