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New land law legislation in Poland will make life very difficult when it comes to selling.


Braveheart16 17 | 122
21 Mar 2016 #1
It would seem that the new legislation on farmland/agriculture purchase which is effective from 1 May 2016 will make things very difficult for owners of such land who wish to sell or pass it on to their family. There would appear to be many restrictions on the sale of such land. However whilst it seems to be intended to target foreign buyers it will seem that farmers will be severely restricted in what they can do with their farmland and the small print in the legislation provides much more detail on how things will be after 1 May.

- No EU nationals will be able to purchase farmland.
- No Polish nationals will be able to purchase farmland, unless they intend to become farmers and use the land for farming purposes for a minimum of 10 years.

- Existing owners of farmland cannot pass on the land to their family unless it will continue to be used as farmland.
- Anyone selling farmland can only sell to someone in their immediate local area and it must be bought by someone who will use the land for farming.

- If unable to find a buyer the government body for land will acquire the land at market value. (likely to be less than current value)

- Any abuse of the law on this will result in land being acquired the government body for land and sold on at market value.
- As land value drops farmers will find it difficult to sell at a price which covers their mortgage/loan.

These are just some points which appear in the legislation. I have attached a link to a short article on this subject which you may find helpful. Just wanted to see what your thoughts are on this.

thenews.pl/1/12/Artykul/211611,Act-to-restrict-purchase-of-land-by-foreigners-passed
delphiandomine 83 | 17,771
21 Mar 2016 #2
You've summed it up very nicely. There's some debate over whether or not the European Commission will take an interest, especially as it relates to the seizing of assets by the agricultural property agency.

Either way, no other government since 1989 has attempted to seize the private assets of farmers.

It's based on the Hungarian example, which saw prime farmland turned over to close associates of the ruling party.
mcm1 2 | 81
21 Mar 2016 #3
in Hungary at least the gov't has allowed small holdings and similar to be re classified at no charge until the end of this year.
cms 9 | 1,271
22 Mar 2016 #4
It is a licence for corruption, a ridiculous reduction of personal freedoms and a massive own goal as it will hit PiS supporters far harder in their pockets than any of the mythical speculators (most foreign investors are in any case very guarded about bringing cash into Poland at the moment).
Ironside 48 | 9,887
22 Mar 2016 #5
There's some debate over whether or not the European Commission will take an interest,

They will not, after all they have no lags to stand on - legally speaking and there is a precedence in Europe - in France for example.

It would seem that the new legislation on farmland/agriculture purchase which is effective from 1 May 2016 will make things very difficult for owners of such land who wish to sell or pass it on to their family.

Seems you are right, but not only that it makes difficult for those who are into farmland speculations to make their killing. If you are right as to specific of the legislation than it is not well balanced law.

the mythical speculators

nothing mythical about them.
pweeg3
22 Mar 2016 #6
There are a million small farmers in Poland. It isn't a very profitable or easy life so, not surprisingly children of farmers don't want to follow the family business.

Obviously selling to your neighbours will be impossible, who would finance the purchase of such a illiquid asset? Land prices will collapse, trapping farmers into poverty. On the other hand, a farmer would be able to build up a substantial local estate from his desperate neighbours on the cheap.

As a way of eliminating the huge number of small farms in Poland and consolidating them into bigger farms it has merit. But what precisely will the state do with with all this cheap, small lots of land?

legally speaking and there is a precedence in Europe - in France for example.

What Poland is proposing its vastly different from the French system.
dolnoslask 5 | 2,560
22 Mar 2016 #7
70% of Polish farms are less than 10 hectares, It would not surprise me if some youngsters would be drawn to the bright city lights instead of continuing the family tradition.

Most estate agents I speak to say there will be a battle over the new laws, but no one has been specific in any detail.

Case of wait and see what happens I guess.
Harry
22 Mar 2016 #8
But what precisely will the state do with with all this cheap, small lots of land?

Lease them to lovers of PIS at the same kind of knock-down prices they bought the houses they now can't even afford to paint.
Ironside 48 | 9,887
22 Mar 2016 #9
There are a million small farmers in Poland

There are millions ways of using it to the advantage of all.
pweeg3
23 Mar 2016 #10
Not legally. Farmers land is devalued if its made almost impossible to sell. So, if I want use my land as equity for a loan to buy land (or farming equipment or buildings), the bank will look at that land and determine that its an illiquid asset with a far lower value. I'm poorer.

Small farmers would probably love to sell their land and retire, that will become much harder (it must be hard enough as it is). How many farmers wives do you see in a market selling their produce when in obvious ill health? its a tragedy.

Even if they could find a buyer, the price will inevitable be less. Protect Poland by ******* the poor farmers, how nice, how communist.

Lease them to lovers of PIS

PO brought in a law last year to 'protect' Polish farmland when the 2016 restriction expired.
Poland does need bigger farms, its could probably double food production if more industrial methods were used. But the methods to do this seems to be dependant on robbing the small, and especially the poor, farmer.

For me, with access to capital, its a Godsend. I need at least 20 Ha to be viable.
sebbii101 - | 1
27 Mar 2016 #11
Merged: RIGHTS TO LAND IN POLAND - HELP

My mother passed away here in the states. My father and I have no will left from her. She had land in Poland on the country side. I have dual citizenship. My father is wants to sell the land but I don't. Its my last memories of my mother and all the times I have spent there. I need to know what right I have if any. Please help.
johnny reb 18 | 3,750
27 Mar 2016 #12
My father and I have no will left from her.

In which case the land now belongs to your father and not you.
delphiandomine 83 | 17,771
27 Mar 2016 #13
My father and I have no will left from her.

Then the statutory rules of inheritance apply in the case of the Polish property.

That means the land is shared between your father and the children, although your father must inherit 1/4th as a minimum (I think).
Tell your father to stop being a greedy so and so and to sell it to you.
nomadone
29 Sep 2018 #14
My partner (who is Polish) and I (British) have recently bought 19 acres of land in Poland. Due to financial constraints, initially we want to build a small house on the property (Polish law dictates up to 35m2 without necessary permissions etc) which will allow us to live and work on the land while arranging our financial situation in the UK in order to build a larger property. Does anyone know of a way to legally combine two 35m2 houses (for more living space) without falling foul of Polish law/legislation?

Many thanks.
delphiandomine 83 | 17,771
29 Sep 2018 #15
I (British) have recently bought 19 acres of land in Poland.

How did you get permission to buy?

Does anyone know of a way to legally combine two 35m2 houses (for more living space) without falling foul of Polish law/legislation?

Impossible. You could divide the plots, but the local planning authorities will have a fit if they see that you've combined two dwellings.
nomadone
29 Sep 2018 #16
It was bought in my partners name. We contemplated a joint application only briefly. The land is divided into two area - farmland and "residential"; essentially a much smaller but still wooded area nearer the main road. Our plan is change the permissions on a meadow at the far end of the land into a building zone so that we can build. Thanks for your answer. I thought this may be the case, but wanted any other thoughts......
delphiandomine 83 | 17,771
29 Sep 2018 #17
Our plan is change the permissions on a meadow at the far end of the land into a building zone so that we can build.

Since the 'lex deweloper' came in, you may not even have to change them at all if they're already zoned for residential.

One thing that should concern you - if you're nowhere near the main road, you'll struggle to get so-called 'media' connections. Water companies are not responsible for paying to reach your property, only the border.
nomadone
29 Sep 2018 #18
Unfortunately the part of the land which is best to build on (with road access established) is classified as farmland. We're aware of the issue of media connection - it's about 400m to the "mains." We're willing to include that cost though, the main one being sewage. We'll have a well dug for water and electricity is not an expensive issue - connection to a nearby pylon is not too expensive. We're choosing to build a straw-bale house, and have a lot of clay available on the land for rendering. Any ideas or thoughts about straw-bale? It seems to be currently just becoming a viable option in Poland. The county which we'll be living in has great incentives for things such as solar power etc.... . Thanks.
delphiandomine 83 | 17,771
29 Sep 2018 #19
We're aware of the issue of media connection

One thing I'd warn you about - companies here are notorious for simply not doing the work needed. A lot of people building from scratch get quotes, but then the work doesn't get done - I'd actually say that you need to get the electricity connection in before anything else. Sewage can be dealt with through a tank (it's not expensive to empty), and if there's a supply of fresh water, you'll be fine. Gas in tanks is also quite common in more rural areas here.

Any ideas or thoughts about straw-bale?

I'd suggest staying away from anything exotic or new unless you've got a builder that you can trust. I'd also say that if you plan to build from scratch, you need to be on-site every single day during construction. Do *not* trust anyone, but verify their work.
nomadone
29 Sep 2018 #20
Great thoughts. Thank you. We've already used a very local company (the same village so no getting away!! to build a road very reasonably, so although we remain wary, it's a good start. Unfortunately the sewage can't be via a tank. The county has a rule where they modernised their sewage systems and now it is routed centrally. I have a lot of experience in straw-bale builds so feel I can take this on with the help of a few tradesman (we'll source locally....) I guess costing will inevitably go over budget to a degree, but I think we've a good foundation (not literally!) in place.

Once again, thanks for your help.... .
delphiandomine 83 | 17,771
29 Sep 2018 #21
build a road very reasonably, so although we remain wary, it's a good start.

Yes, it's a good start, but I still reiterate the importance of being on site. You'll want to inspect all the work carried out, because the second you let your guard down, you'll experience problems. Also, do *not* use anyone connected to you in terms of family or friends - it's asking for trouble. Keep everything professional, and only pay in milestones. In my experience, what you want to do is sit down at the end of each week with their main guy and go over everything - what needs to be done, what needs to be fixed, etc etc. Best is to only pay them in advance for the materials immediately required, unless something has a long order time - although if they agree to post-payment, it'll be better for you (but unlikely).

I can take this on with the help of a few tradesman (we'll source locally....)

Definitely you can if you're willing to set strict rules and not deviate from them. There's a lack of good tradesmen in Poland, so the available good ones tend to booked out months in advance for work.


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