Can foreigners buy a castle, a manor or a grange in Poland?

Time and again, prospective buyers of real estate or land in Poland are faced with similar questions and uncertainties due to various sources of information on the Internet:

As a Foreigner, can I buy a castle or a historic property in Poland at all?

Can only a Polish farmer purchase an estate in Poland?

Can I also buy a property with a large plot of land and forest land?

REALPORTICO provides information on the current status in 2021.

Please note:

This article serves as a brief overview and initial information for prospective buyers of real estate with an agricultural character in Poland and makes no claim to legal certainty. It is in no way a substitute for sound legal advice. The laws on which this information is based may be subject to change at short notice. In addition, the acquisition of land may be a borderline case requiring approval, which in case of doubt can only be determined by a lawyer specializing in property law in Poland.

Mere internet research is not helpful. Your first contact person is the real estate agent or provider of a property in Poland. As there is often a risk of misunderstandings or ambiguous statements due to language barriers, we generally recommend additional legal advice. Define your intention "What do I want to buy where in Poland for what purpose?" and invest a small amount for a specific initial consultation with a Polish lawyer. In the meantime, there are many English and German-speaking lawyers in Poland who advise foreign prospective buyers on the acquisition of real estate or land in Poland.

If you speak English or Polish, or have Polish-speaking contacts, you can also contact the National Support Center for Agriculture, or "KOWR" for short, directly if you have any questions. However, it is recommended that contact be made in the local language.

2. Agricultural character: Restrictions apply to this real estate and land

In Poland, all developed and undeveloped land that is in principle suitable for farming is considered to have agricultural character. A plot of land registered in Poland as agricultural real estate is in most cases subject to official control by the competent agricultural authority KOWR when it is sold or purchased. These include in particular:

Generally undeveloped agricultural land of all types: arable land, fields, meadows, forests.
Real estate and developed land whose lot size with potential agricultural land is greater than 1 hectares/10,000 m².

Since many historic estates in rural areas, despite possible urban sprawl, still exceed a customary plot size and are historically associated with agricultural use, these restrictions apply to all castles, palaces, manors, estates and equally to remnant farms, farmhouses and, in principle, to all houses and estates that have a potentially agriculturally usable portion of more than 0. 5 Ha possess.

For the required permission it is irrelevant whether this is an actively used agricultural area or a fallow land with abandoned use. Registered monuments are also not subject to any special conditions in this regard. In all cases, the provision for acquisition remains.

In brief: The purchase of a castle with 10 Ha plot size requires, regardless of any monument status and condition, an official permit just as the purchase of a house with 11,000 m² of meadow.

3. in these cases the purchase of an agricultural real estate is permit-free.

If the land plot of an agricultural property is below the limit of 1 ha, a purchase does not require a permit. Then you become the legal owner with the conclusion of a notarial purchase contract by a Polish notary. Before buying, you should check the deed of the Polish notary and also always ask to see the land register to make sure that there are no encumbrances registered here and that the seller is the legal owner.

Municipal tendering of agricultural real estate

Many palaces and mansions in Poland are owned by municipalities. Often, municipalities are looking for buyers or investors to develop real estate within the framework of a local land use plan. The land use plan specifies the future use and is usually the basis for subsidized rural development programs. Typical uses include facilities in the fields of health and care or recreation and tourism.

If you are interested in acquiring such a municipal property, the approval requirement by the agricultural authority does not apply, regardless of the associated property size of an advertised property. However, a buyer must comply with and implement the requirements of an RFP. As a rule, there are clear regulations for each tender regarding who can acquire the property, what investments must be made in what time frame, or what private and public uses are planned.

Even in the case of purchase intentions that are obviously exempt from a permit
Always make sure whether approval is required or not. A purchase requiring approval that has been made without official consent is invalid and entails considerable legal difficulties, which may also result in the loss of the purchase price paid!

4. Basis of the purchase restrictions

The basis of the restrictions or required purchase permit for agricultural land is the Law on the Formation of the Agricultural System (Ustawa o kształtowaniu ustroju rolnego) in Poland, the latest amendments to which came into force in October 2021. Similar laws also exist in Germany and other European countries. The overriding goal here is to support and promote domestic agriculture and, above all, to prevent the uncontrolled sale and misuse of agricultural land as an object of speculation.

Therefore, the law stipulates that certain conditions apply to the purchase of agricultural land and that initially, in principle, only a farmer can acquire such land. The widespread opinion that the law is also directed against the acquisition of foreign buyers is refuted to the effect that a required purchase permit is independent of nationality, because even Polish citizens require a permit for the purchase of an agricultural property.

5. Acquisition of agricultural real estate by non-farmers

Polish or foreign EU citizens who are not engaged in agricultural activities may acquire agricultural real estate with an area of more than 1 ha if no domestic farmer is interested in acquiring it and if the agricultural authority also does not exercise its right of first refusal.

Any owner of an agricultural property with an associated plot size of more than 1 Ha, must inform the agricultural authority of a proposed sale. Within a specified period of time, the land must first be offered to a local farmer. If no farmer is interested in purchasing the land and the authority does not exercise its right of first refusal, it can release the land for general sale. As a rule, you can assume that official approval has been obtained if the real estate is offered on the Internet on broker websites or real estate portals. The offerer or broker is responsible here that for the offered real estate an official release is present.

Independent of it the hurdle of the official permission remains. Any prospective buyer must submit an application to the Agricultural Development Center justifying the intent to purchase and disclosing the intent.

6. Request for purchase approval

The application for consent to purchase an agricultural property in Poland should be made as early as possible. Here you can download the application form of the agricultural authority KOWR. You should provide accurate information here and fill in all fields. Various documents must be attached to the application. Inquire in advance with the provider of a property whether he offers support in this regard or, if in doubt, have the submission of the application accompanied by a lawyer.

Can the authority refuse a purchase?

Of course, the authority can refuse its consent - even without giving any reasons or non-reasonable grounds. If your project is compliant with Polish laws, if you are committed to investing or even creating jobs and if, at best, you want to move to Poland completely, there is usually no reason for the authority to refuse a purchase.

7. Can citizens from Switzerland, Great Britain or the USA purchase agricultural real estate?

The same regulations apply to prospective buyers outside the European Union. In addition, they need a permit from the Polish Ministry of Interior, which creates an additional bureaucratic hurdle. The more ties an applicant can prove to Poland (spouse, carrying out a commercial or agricultural activity...), the greater the chances of obtaining such a permit. Seek legal advice on the conditions under which the Ministry of Interior may grant a permit and the circumstances under which such a permit may be waived.

8. Summary

The sale and purchase of agricultural real estate in Poland is regulated by the agricultural authority KOWR.
Farmers and the agricultural authority have a right of first refusal.
If neither a farmer nor the authority exercises its right of first refusal within a statutory period, non-farmers may also acquire this property. These properties may then be publicly offered for sale on the Internet.
The acquisition of agricultural real estate by non-farmers with a plot size of more than 10,000m² requires approval.
The acquisition of agricultural real estate by non-farmers with a plot size of less than 10,000m² is permit-free.
The acquisition of agricultural real estate offered for sale to the public by municipalities does not require a permit. However, buyers must meet the requirements of a tender.
The acquisition of agricultural real estate by non-EU citizens additionally requires a permit from the Polish Ministry of the Interior.
A lawyer specializing in "real estate law in Poland" can advise you further and guide you safely through this bureaucratic process.