Definition of agricultural property
The Agricultural System Act introduces a number of restrictions and obligations related to trading in agricultural property in Poland. Thus it is vital to define precisely what agricultural property is. Incorrect classification of property may render the transaction defective. Below we discuss the definition of agricultural property in light of the Agricultural System Act.
Proceedings before the National Support Centre for Agriculture: Obtaining approval for acquisition of agricultural property
The procedure for obtaining approval for acquisition of agricultural property is highly formalised. Not every entity is eligible to acquire agricultural property. For example, this cannot be done by a commercial company interested in starting agricultural activity. Additionally, strict requirements have been enacted governing the price at which the vendor can offer agricultural property for sale.
Obligations of the purchaser of agricultural property
The current provisions have greatly restricted the possibility of trading in agricultural property, introducing a number of requirements that must be met before acquiring such property. But it doesn’t end there. The Agricultural System Act imposes a number of obligations on the owner following the acquisition.
Restrictions on trading in shares under the Agricultural System Act
Before any transfer of shares in companies, it is essential to analyse the transaction in the context of the restrictions on share trading under the Agricultural System Act. If any of the subsidiaries holds an agricultural property (of at least five hectares), it may be necessary to notify the National Support Centre for Agriculture. Failure to notify the transaction will invalidate the transaction.
Sanctions for violations of the Agricultural System Act
The primary stated purposes of the Agricultural System Act of 11 April 2003 are to strengthen family farms in Poland, ensure the country’s food security, and promote sustainable agriculture with an emphasis on environmental protection. Therefore, the act imposes severe sanctions for violation of its provisions: nullity of the transaction or forced buyout of the agricultural property.
The Shelter Act: Collective protection facilities in Poland
As of 1 January 2026, every new multifamily development will have to allow for operation of an emergency shelter. Civil defence authorities will also have to designate which existing or planned structures can serve as shelters, hiding places, and sites of emergency refuge.
A few words on the right to use the right-of-way of a public road for construction purposes
An investor seeking to build on a site must have the right to use the property for construction purposes. If the project includes for example building or rebuilding utility lines in a road right-of-way, can the right to use the property for this purpose be based on a decision authorising occupation of the right-of-way?
Legal support for post-flood reconstruction and renovation
In the face of the elements and their destructive impact, the priority is quick reconstruction and renovation of structures. Thus an act was introduced into the Polish legal system in 2001 allowing such work to be carried out in a simplified manner. It is likely that persons affected by the September 2024 floods in southwestern Poland will soon be able to take advantage of these provisions.
How the proximity of an airport can block the development process
Approval of the master plan for Warsaw Chopin Airport in July 2023 has paralysed real estate development in the city. Why? And is there a cure?
Extension of the relief sought on appeal should be more available
For years, the rules limiting the extension of a claim on appeal have been a challenge for counsel determining their litigation strategy when seeking damages in tort cases. Over many years of court proceedings, the value of the claims may change as prices rise. But the Polish courts require the amount of the claims to be frozen as of the time of entering the judgment in the first instance, even though there is a long way before the end of the court dispute.
Investment property and tax expenses
One of the challenges facing real estate companies is the limitation of claiming tax costs for depreciation on real estate, effective from 2022. Sometimes, the only way out will be tax litigation.
Minimum tax on building income
The minimum tax on income from buildings in Poland was reinstated as of 2022, and the reinstatement brought with it a return of interpretive doubts making it difficult for taxpayers to apply the tax. These doubts include whether hotel services are covered by the minimum tax, and whether depreciation deductions on buildings and income from common areas should be factored in when calculating the tax.
