CHANGE OF REMUNERATION IN PUBLIC CONSTRUCTION CONTRACTS
Surging prices for construction materials, an inflation rate that is highest in years, and spiralling operating costs are a major headache for construction companies at the moment. The problem is particularly acute when it comes to putting together project cost estimates, as it has become all but impossible to predict with any precision future prices […]
PROJECT OWNER’S SUPERVISING INSPECTOR: WHEN ONE HAS TO BE APPOINTED
Of all the participants in the construction process mentioned in the Construction Law (henceforth CL), the project owner’s supervising inspector is the only one whose involvement is not, in principle, mandatory. Much is down to administrative discretion. But there are important exceptions. Under Article 19, paragraph 1 of CL, the architecture and construction administration body […]
EU ETS II
We continue with the topic of environmental protection and climate action legislation as it pertains to the construction and real estate sectors. In the previous issue we looked at the imminent reform of the European Union’s energy performance of buildings directive, aimed at achieving a climate-neutral building stock by 2050. In the present article we […]
REVISION OF ENERGY PERFORMANCE OF BUILDINGS DIRECTIVE DRAWS CLOSER
The ways in which electricity is generated and how it is consumed have been targeted quite some time ago with the so-called energy transition programs, which were the subject of, for example, the 2015 Paris Agreement or the so-called European Green Deal. Changes in the management of energy carriers affect, already at this stage of […]
A MONUMENT OF NATURE ON A PLOT
If a plot of land has a beautiful tree or shrub on it, it is worth checking if they have the status of a monument of nature. Because if they do, legal restrictions apply that could render a construction project impossible. Under the Nature Conservation Act, monuments of nature are e.g. “individual objects of […]
NEW CJEU RULINGS ON CHF MORTGAGE LOANS
In the early 2000s, banks in Poland began to offer mortgage loans denominated in foreign currencies (or linked to foreign currencies), mainly Swiss francs (CHF), which where cheaper than zloty loans. They proved hugely popular: hundreds of thousands of Poles took out such mortgages in the following decade or so. But when Switzerland’s central bank […]
GOVERNMENT PROGRAMS FOR YOUNG HOME BUYERS AND RENTERS – PART IV
Housing Act 2023 is now set to come into force in July as planned, as the Senate approved it in May with amendments. In this fourth and last part of our series – which previously discussed the Social Rental Agency (SAN), the housing co-op, Safe Mortgage 2%, and Home Account and Home Deposit[1] – we take […]
REITs AND VACANT SPACES IN POLISH LAW – PART 3
This is the third and last installment in our series that looks at new or planned measures in Polish law designed to increase the supply and affordability of housing. Having discussed attempts to introduce a REIT-type instrument into the Polish legal framework[1] and having looked at the so-called Emergency housing act of 2018[2] and at recent changes […]
GOVERNMENT SUPPORT PROGRAMS FOR FIRST-TIME HOME BUYERS – PART III
On 14 April 2023 the Sejm passed the “Act on state support for home savings” (henceforth Housing Act 2023), the legislation that introduces the new assistance scheme for first-time home buyers. The bill is now before the Senate[1]. Thus the planned date of its entry into force – July 2023 – seems realistic. In this […]
THE NEXT STAGE OF LIQUIDATION OF PERPETUAL USUFRUCT
On April 5, the Sejm received a government draft amendment to the Real Estate Management Act and some other acts. The project includes, among others: the right to acquire ownership of land used for purposes other than housing by its perpetual usufructuary. The draft is the next stage of changes in the legislation, which are […]
GOVERNMENT SUPPORT PROGRAMS FOR FIRST-TIME HOME BUYERS – PART 2
This is the second article in our series that looks at existing and planned government measures and programs designed to help young households buy a flat or house. In the opening article, we saw that the most important existing pieces of legislation are Housing Act 2021[1] and Housing Act 2022[2]. In the present article, we take […]
GOVERNMENT SUPPORT PROGRAMS FOR FIRST-TIME HOME BUYER – PART I
Helping young families meet their housing needs – by renting or buying – is a major policy issue for any government. A few weeks ago we discussed a new instrument intended to support renters, called the Social Rental Agency[1]. This article is the first in a new series that will look at recent and planned […]
REITs AND VACANT SPACES IN POLISH LAW – PART 2
This is the second article in our series that looks at new or planned measures in Polish law designed to increase the supply and affordability of housing[1]. As we saw in the first part of the series, attempts to introduce a REIT-type instrument into the Polish legal framework have so far failed, but a recent […]
REITs AND VACANT SPACES IN POLISH LAW
It has become a truism, but is no less true for its repetition: construction is a key engine of the economy. The different segments of the real estate market – housing, office, retail – are developing at different speeds. In all segments there is a risk of supply exceeding demand, resulting in vacant spaces and […]
DIGITIZATION OF THE CONSTRUCTION PROCESS
Three months ago, the Polish Parliament enacted legislation titled the “Act of 7 July 2022 amending the Construction Law and some other acts” (Journal of Laws item no. 1557). It is an important bill that marks another step in the digitization of the construction process. It introduces the electronic construction site logbook (EDB) and the digital […]
REAL ESTATE ASSETS IN A BANKRUPTCY/RESTRUCTURING – SELECTED ISSUES
When an entity in financial distress is declared bankrupt, or placed under a court-supervised rescue mechanism under the Restructuring Law, among the many legal consequences are those pertaining to real estate assets that it owns. The inclusion of such assets in the bankruptcy or restructuring estate can prove a blessing or a burden. The interests […]
URBAN PLANNING REFORM: KEY POINTS
Earlier this year the Ministry of Development and Technology unveiled a bill amending the Act on Urban Planning and Land Use. The legislation is currently in the consultation phase. If enacted, it will represent a major overhaul of the existing regulatory framework for planning, which has been in place for nearly two decades. In what […]
NEW DEVELOPER ACT – PART 3
It is only weeks now before the New Developer Act (NDA) comes into effect on 1 July. Having looked at what NDA means for developers and home buyers, in this third and final part of our series we focus on the role of banks, and finish with overall conclusions. We begin, though, with a terminological […]
UKRAINIAN AND AMERICAN DOCTORS – PERMIT TO WORK AS A PHYSICIAN IN POLAND
US CITIZENS PROCEDURE NO. 1 FOR DOCTORS WITH SPECIALIZATION (US specialty board certification) – Applicable to physicians educated and trained in the USA.– Limited permit to practice in a specific range of activities, time period and designated place.– Practice limited to one registered health care institution (without COVID restrictions).– Procedure is more of a formality. […]
NEW DEVELOPER ACT – PART 2
The perspective of the buyer is central to the “Act of 20 May 2021 on the protection of the rights of buyers of apartments and single-family houses and on the Developer Guarantee Fund,” commonly referred to as the New Developer Act (henceforth NDA), which is coming into effect on 1 July. In this second part of […]
NEW DEVELOPER ACT
Almost exactly a year ago, on 20 May 2021, the Sejm passed legislation commonly referred to as the New Developer Act (henceforth NDA). Formally titled the “Act of 20 May 2021 on the protection of the rights of buyers of apartments and single-family houses and on the Developer Guarantee Fund,” the stated objectives of NDA […]
CROWDFUNDING
The crowdfunding services sector is one of the most dynamically developing areas of the financial market globally, including Poland. The interest in this form of financing is growing year by year, causing the results of successive years to be a multiple of the results of the previous years. The size of the global crowdfunding market […]
CROWDFUNDING – EU REGULATIONS ALREADY IN PLACE, POLISH REGULATIONS STILL MISSING
Continuing the series of articles on crowdfunding in the area of commercial projects, in this entry we will focus on key aspects related to the EU regulation providing a uniform legal framework for crowdfunding in the European Union. We also encourage you to read the previous article in this series presenting a general outline of […]
SPECIAL ACT ON ASSISTANCE TO UKRAINIAN REFUGEES IN POLAND
#StandWithUkraine On 12 March 2022, the special act on assistance to Ukrainian refugees in connection with Russia’s invasion of Ukraine (the “Special Act”) entered into force. With few exceptions, the Special Act shall apply retroactively from 24 February 2022, i.e., the day Russia invaded Ukraine. The provisions of the Special Act apply to Ukrainian citizens […]
DRAFT LAW ON ASSISTING UKRAINIANS IN POLAND
#StandWithUkraine On 7 March 2022 the Polish government presented to the Polish Parliament (the “Sejm“) a draft of a special act on assistance to citizens of Ukraine in connection with Russia’s invasion of Ukraine (the “Special Act”). The Sejm will now consider the Special Act. Once finally adopted, the Special Act would apply retroactively from […]
CROWDFUNDING FOR BUSINESS VENTURES AND BORROWER ASSISTANCE
After months of prolonged work on a draft Polish law to apply the ECSP Regulation in our country, on the 7th of July 2022, the Parliament passed the Act on Crowdfunding for Business Ventures and Borrower Assistance (the “Act”). In the past week, the Act was signed by the President of Poland and promulgated in […]
DEVIATION FROM TECHNICAL BUILDING REQUIREMENTS
Under Article 5, paragraph 1 of the Construction Law of 7 July 1994 (consolidated text: Journal of Laws 2021, item 2351, henceforth “CL”), all construction projects must be designed and built in conformity with “technical building regulations,” i.e. regulations issued by competent ministers that set out technical requirements for buildings, their location, and use. From […]
AMENDMENT TO ARRANGEMENT APPROVAL PROCEEDINGS
On 1 December 2021, an amendment to the Act on National Debtor Register and Certain Other Acts (“Amendment”) came into force. One of the most significant changes ushered in under the Amendment is the complete revamping of the—so far highly niche—arrangement approval proceedings. The arrangement approval proceedings are an offshoot of the simplified restructuring proceedings […]
NEW GUIDELINES FOR TRANSFER OF PERSONAL DATA FROM EU TO US
The issue of transfer of personal data from the EU countries to the United States has raised many questions for years, while its legal framework has rapidly evolved. Said personal data transfer is governed under Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural […]
WHISTLEBLOWER PROTECTION UNDER NEW WHISTLEBLOWER REGULATIONS
The deadline for implementation of Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law (“Directive”) by Member States expired on 17 December 2021. However, the Polish Parliament has not managed to meet it, and hence the implementing regulations […]
NEW OBLIGATIONS UNDER WHISTLEBLOWER PROTECTION REGULATIONS AND CONSEQUENCES OF THEIR VIOLATION
The deadline for implementation of Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law (“Directive”) by Member States expired on 17 December 2021. However, the Polish Parliament has not yet managed to enact the implementing regulations, which are […]
PRINCIPLE OF EFFICIENCY IN NEW PUBLIC PROCUREMENT LAW
The Public Procurement Law of 11 September 2019, which came into force on 1 January 2021 (“Law”), ushered in many changes in the public procurement regime. One of the underlying assumptions of the legislators when designing these changes was to significantly improve the efficiency of public procurement. The principle is expressly stated in Article 17.1(2) […]
KEY CHANGES TO PUBLIC PROCUREMENT LAW
On 1 January 2021, the Public Procurement Law of 11 September 2019, a completely new set of regulations replacing the previous law of 29 January 2004, came into force. It contains a number of significant changes that have transformed the nature of public procurement and are worth addressing. The most important change in the new […]
REMOTE WORK AND LABOR CODE
Remote working is a development that has become very common in the last two years. The pandemic forced the legislators to enact extraordinary measures to prevent the spread of the virus, also with regard to employment and its forms. There was a need for a set of regulations that would allow the employer to make […]
CHANGES TO RULES REGARDING EMPLOYMENT OF FOREIGNERS
On 17 November 2021, the Polish Parliament adopted an amendment to the Act on Foreigners (Journal of Laws 2020.35) and to certain other acts. One of these acts is the amended Act on Promotion of Employment and on Labor Market Institutions (Journal of Laws 2021.1100), hereinafter referred to as the Amendment. It puts in place […]
What are possible negative effects of New Developer Act?
The Act of 20 May 2021 on the protection of the rights of buyers of apartments and single-family houses and on the Developer Guarantee Fund (consolidated text: Journal of Laws 2021, item 1,177), popularly referred to as the New Developer Act (henceforth NDA), is coming into effect on 1 July 2022. This means, in practice, […]
What are possible negative effects of New Developer Act?
The Act of 20 May 2021 on the protection of the rights of buyers of apartments and single-family houses and on the Developer Guarantee Fund (consolidated text: Journal of Laws 2021, item 1,177), popularly referred to as the New Developer Act (henceforth NDA), is coming into effect on 1 July 2022. This means, in practice, […]
What are possible negative effects of New Developer Act?
The Act of 20 May 2021 on the protection of the rights of buyers of apartments and single-family houses and on the Developer Guarantee Fund (consolidated text: Journal of Laws 2021, item 1,177), popularly referred to as the New Developer Act (henceforth NDA), is coming into effect on 1 July 2022. This means, in practice, […]
End of implementation period concerning construction projects
Just over a year ago, on 19 September 2020, a wide ranging amendment to the Polish construction law aimed at expediting construction projects came into effect.. The legislation – The Act of 13 February 2020 amending the Construction Law and some other acts (henceforth Amendment) – encompassed nearly 60 provisions which were aimed at e […]
End of implementation period concerning construction projects
Just over a year ago, on 19 September 2020, a wide ranging amendment to the Polish construction law aimed at expediting construction projects came into effect.. The legislation – The Act of 13 February 2020 amending the Construction Law and some other acts (henceforth Amendment) – encompassed nearly 60 provisions which were aimed at e […]
Changes to construction and planning laws in the government’s Polski Lad programme
The Ministry of Development, Labour and Technology unveiled for consultation in August a draft bill amending the Construction Law of 7 July 1994 and the Act of 27 March 2003 on Spatial Planning and Land Use. Its objective is to simplify the construction of small single-family houses and recreational houses. The reform is part of […]
Changes to construction and planning laws in the government’s Polski Lad programme
The Ministry of Development, Labour and Technology unveiled for consultation in August a draft bill amending the Construction Law of 7 July 1994 and the Act of 27 March 2003 on Spatial Planning and Land Use. Its objective is to simplify the construction of small single-family houses and recreational houses. The reform is part of […]
Role of the Study of land use conditions and directions in the spatial planning system
The Act of 27 March 2003 on Spatial Planning and Land Use (consolidated text: Journal of Laws of 2021, item 741, with subsequent amendments) (henceforth “the Act”) imposes an obligation on local governments and central government authorities to pursue spatial planning and land use policies that respect the principles of spatial order and take into […]
SALE OF REAL ESTATE BY MEANS OF ELECTRONIC AUCTION
The Act of May 28, 2021 on amending the act – the Code of Civil Procedure and certain other acts (Journal of Laws of 2021, item 1090), in addition to controversial changes regarding the existing rules for handling cases in civil, criminal and administrative court proceedings and the rules for delivery of letters to professional […]
New Developer Act signed into law
On 8 June President Andrzej Duda signed into law the so-called New Developer Act, whose official name is the Act of 20 May 2021 on the protection of the rights of buyers of apartments and single-family houses and on the Developer Guarantee Fund. One of its key provisions is to establish a fund called the […]
New Developer Act signed into law
On 8 June President Andrzej Duda signed into law the so-called New Developer Act, whose official name is the Act of 20 May 2021 on the protection of the rights of buyers of apartments and single-family houses and on the Developer Guarantee Fund. One of its key provisions is to establish a fund called the […]
ACT ON PERSONAL INCOME TAX
Expenses for garden equipment are not tax deductible. Letter of the Director of the National Fiscal Information dated May 4, 2021, ref. no. 0112KDIP2-2.4011.81.2021.3.WS The director of the National Fiscal Information did not agree with the entrepreneur, who believed that the expenses incurred for garden equipment (such as, for example, terrace, pergola, table, chairs, plants), […]
Acquisition of real estate in Poland by a foreigner versus permanent residence
Pursuant to the Act of March 24, 1920 on the acquisition of real estate by foreigners: “Acquisition of real estate by a foreigner requires a permit. The permit is issued by way of an administrative decision by the minister of internal affairs, if the Minister of National Defense does not raise an objection, and […]
Sale of real estate by means of electronic auction
The Act of May 28, 2021 on amending the act – the Code of Civil Procedure and certain other acts (Journal of Laws of 2021, item 1090), in addition to controversial changes regarding the existing rules for handling cases in civil, criminal and administrative court proceedings and the rules for delivery of letters to professional […]
Issuing of an outline planning decision for a part of a plot
An outline planning decision (the “WZ decision”) is a key element of any construction project carried out in an area which is not covered by a local spatial development plan. The decision contains information determining whether it is possible to execute an investment with specific parameters on a particular plot, being the subject of the application. […]
About the identity of the investment in an outline planning decision and in a building permit
Since the beginning of the Act of March 27, 2003 on spatial planning and development, there have been doubts as to which extent an application for a building permit should correspond to the content of the relevant outline planning decision. While there are no major doubts that the building permit should meet the parameters specified in […]
ISSUING AN OUTLINE PLANNING FOR A PART OF A PLOT, 10 June 2021
An outline planning decision (the “WZ decision”) is a key element of any construction project carried out in an area which is not covered by a local spatial development plan. The decision contains information determining whether it is possible to execute an investment with specific parameters on a particular plot, being the subject of the application. […]
ISSUING AN OUTLINE PLANNING FOR A PART OF A PLOT
An outline planning decision (the “WZ decision”) is a key element of any construction project carried out in an area which is not covered by a local spatial development plan. The decision contains information determining whether it is possible to execute an investment with specific parameters on a particular plot, being the subject of the […]
Material deviation from an approved building plan: amended regulations.
The wide-ranging reform of Poland’s construction laws that came into effect in September of last year (Act of 13 February 2020 amending the Construction Law and some other acts, Journal of Laws 2020, item 471) introduced, among other things, significant changes concerning material deviations from approved building plans. Under the amended text of Article 36a, […]
Material deviation from an approved building plan: amended regulations.
The wide-ranging reform of Poland’s construction laws that came into effect in September of last year (Act of 13 February 2020 amending the Construction Law and some other acts, Journal of Laws 2020, item 471) introduced, among other things, significant changes concerning material deviations from approved building plans. Under the amended text of Article 36a, […]
Tax spotlight Poland II
ACT ON PERSONAL INCOME TAX Assignment of revenues from lease, tenancy and other contracts of a similar nature to the appropriate source of revenues in the PIT Act. Supreme Administrative Court Resolution dated May 24, 2021, ref. no. II FPS 1/21 Income from lease (sublease), tenancy (subtenancy) and other contracts of a similar nature are […]
Investment process after amending the Act on Disclosure of Information on the Environment
As of May 13, 2021, the provisions of the Act of March 20, 2021 on amending the Act on disclosure of information on the environment and protection thereof, public participation in environmental protection and environmental impact assessments and certain other acts (Journal of Laws 2021, item 922), shall apply. In addition to amendments to the […]
ACT ON CORPORATE INCOME TAX
Expenses for public road as a tax expense of a real estate developer. Letter of the Director of the National Fiscal Information dated January 26, 2021, ref. no. 0114-KDIP2-1.4010.448.2020.3.PD The costs resulting from a contract concluded with a municipality that are related to the construction of a public road leading to a multi-family residential building […]
Amendment to the Real Estate Development Act
On April 20, 2021, the Sejm passed an amendment to the act on the protection of the rights of buyers of a flat or a single-family house and on the Real Estate Development Guarantee Fund, the draft of which was submitted by the President of the Office for the Protection of Competition and Consumers (“OPCC”). […]
Adapting listed historic buildings for commercial use: legal requirements
One way in which old structures deemed to be of special historic significance are protected in Poland is through inclusion in the register of historic monuments. Article 9 paragraph 1 of the Act of 23 July 2003 on the protection and care of monuments1, henceforth the Act, stipulates that “A structure of special historic signifcance […]
Civil proceedings in times of the COVID-19 epidemic
The draft act of April 20, 2021 (date of submitting the first draft to the Sejm – January 15, 2021) amending the act – the Code of Civil Procedure and certain other acts, introduces important changes, such as introduction of provisions regulating e-auctions of real estate. It also introduces changes, which will significantly affect the […]
Tax spotlight Poland
I. TAX ORDINANCE It is allowed to apply for a tax interpretation in case of doubts related to MDR (Mandatory Disclosure Rules) reporting. Reporting of MDR tax schemes is included in the scope of interpretation proceedings pursuant to Art. 14b and subsequent of the Tax Ordinance Supreme Administrative Court judgement dated January 28, 2021, file […]
The legal nature of the contractor’s obligation under the construction works contract
Few areas of construction law have generated more controversy in jurisprudence and court practice in Poland than the nature of the performance that the construction works contract imposes on the contractor. The debate comes down to the following point: is the obligation – which according to Article 647 of the Civil Code1, consists in the […]
ACT ON PERSONAL INCOME TAX
The employer’s reimbursement to a remotely working employee of the purchase costs of equipment necessary for remote work does not constitute the employee’s income. Letter of the Director of National Fiscal Information dated January 25, 2021, file ref. 0115-KDIT1.4011.851.2020.1.KK. Argument In the opinion of the Director of the National Fiscal Information, the reimbursement of expenses incurred […]
Construction of an exit in the light of new regulations
The construction or reconstruction of an exit from a property to a public road requires the fulfillment of a number of formalities that have changed in the last few years. The procedures for designing and building exits vary according to the category of the exit. The legislator, by introducing new regulations regarding exits, made an […]
Expropriation of real estate as a consequence of the loss or lack of Polish citizenship
The right to property, seemingly one of the most protected, it is sometimes restricted or even taken away in the name of the law under various circumstances. In the period after 1945, Polish law has contained several regulations directly linking the loss of Polish citizenship (or the lack of such citizenship) with the loss of […]
Location of retail parks in areas without a local spatial development plan allowing for such facilities
The purpose of this study is to discuss the admissibility – in the light of the regulations and jurisprudence of administrative courts – of the location of retail parks consisting of several buildings, the total sales area of which exceeds 2,000 m2, in areas not covered by a currently binding local spatial development plan or […]
Changes in building-permit application and documentation requirements: the amendment to Construction Law of 10 December 2020
A number of changes to the Act of 7 July 1994 – Construction Law (consolidated text: Journal of Laws 2020, item 1333 as amended) (henceforth “Construction Law”) are coming into effect from 1 July 2021 that will make the process of applying for a building permit easier and quicker. Several onerous requirements will be eliminated, […]
Changes in building-permit application and documentation requirements: the amendment to Construction Law of 10 December 2020
A number of changes to the Act of 7 July 1994 – Construction Law (consolidated text: Journal of Laws 2020, item 1333 as amended) (henceforth “Construction Law”) are coming into effect from 1 July 2021 that will make the process of applying for a building permit easier and quicker. Several onerous requirements will be eliminated, […]
New restrictions on the return of real property covered by the decree of the National Council on the ownership and use of real property in the area of the Capital City of Warsaw, issued on October 26, 1945 (the so-called Bierut Decree), effective as of October 20, 2020, may lead to a complete suspension of re-privatization processes in the territory of the Capital City of Warsaw.
The amendment to the Act on Real Property Management (Journal of Laws of 2020, item 1709) has significantly expanded the catalog of conditions on the basis of which the authority may refuse to grant the land for perpetual usufruct or to transfer the ownership of the land to the current owners of the land (their […]
Rights of the owner who is unlawfully prohibited to use the common property under co-ownership regulations
The right of co-ownership is the ownership right held by several people simultaneously and indivisibly. Co-ownership is characterized by three basic features, i.e. the unity of the subject, the multiplicity of entities with the right of the co-ownership and the indivisibility of the joint right, which means that each of the co-owners has the right […]
“Visibility of the device” as a premise for acquisitive prescription of a land easement
A land easement is a concept that consists in encumbering one property in order to increase the utility of another property. On its basis, the owner of the benefited property may use the encumbered property to a certain extent. A land easement may be acquired through an agreement, a court decision, but also by acquisitive […]
New energy performance standards for buildings – Standard WT 2021
More stringent rules As of 1 January 2021, all construction projects undertaken in Poland have to comply with new energy performance standards for buildings, known as “Standard WT 2021”. Standard WT 2021 toughens up the requirements in this respect. The new rules are laid down in §328 and §329 of the “Regulation of the Infrastructure […]
New energy performance standards for buildings – Standard WT 2021
More stringent rules As of 1 January 2021, all construction projects undertaken in Poland have to comply with new energy performance standards for buildings, known as “Standard WT 2021”. Standard WT 2021 toughens up the requirements in this respect. The new rules are laid down in §328 and §329 of the “Regulation of the Infrastructure […]
Consequences of Brexit for the real estate
Sandwiches seized at the border: first consequences of Brexit – the title of an article of the Italian La Repubblica recently reprinted in Gazeta Wyborcza says. Unfortunately, it doesn’t end with sandwiches… Although Great Britain formally left the European Union almost a year ago, it’s only recently that its effects have begun to reach us […]
New rules on annulment of building permits and occupancy permits
Following the latest amendment to the Construction Law, which came into effect on 19 September 2020, the maximum time in which authorities may declare a building permit or occupancy permit null and void has been reduced to 5 years. Under Article 37b (1) of the amended Construction Law, “A decision to grant a building permit […]
New rules on annulment of building permits and occupancy permits
Following the latest amendment to the Construction Law, which came into effect on 19 September 2020, the maximum time in which authorities may declare a building permit or occupancy permit null and void has been reduced to 5 years. Under Article 37b (1) of the amended Construction Law, “A decision to grant a building permit […]
Amendment of the provisions on the transfer of construction permits
The possibility to transfer decisions on construction permits to a third party has been possible since the introduction of the Construction law dated July 7, 1994 (the “Act”). This issue was always regulated by Article 40 of the Construction law, which was amended several times. At first this possibility concerned only construction permits. In 2003 […]
Compensation for the division of a plot of land for a public road
A common way of expropriation of real property is the division of a plot of land for a public road. The division may be made if the separated part of the real property was designated for a public road in the zoning plan or, if there is no plan, a decision was made to determine the […]
New taxes in the real property industry in 2021
On November 29, 2020 the Polish Sejm (lower house of the Parliament) adopted regulations under which spółki komandytowe (limited partnerships) will be treated the as capital companies as far as income taxes are concerned, which will effectively result in double taxation of this form of activity starting from 2021. Unfortunately, this will not be the […]
New taxes to hit real estate-owning firms in 2021
On 29 November the Sejm passed legislation under which limited partnerships in Poland will be treated as corporations for income tax purposes – i.e., will be required to pay the corporate income tax – already from 2021, leading to double taxation. Unfortunately, this is not the only way in which the tax burden on business […]
The concept of “adaptation” in construction law and related regulations
Recent years have shown that adapting and modernising old buildings and industrial buildings, such as those in Łódź, Poznań, Żyrardów or Warsaw, is worthwhile. However, it is important to keep in mind that such undertakings, usually involving higher costs than the construction of new facilities, not always are successful. One of the reasons for possible […]
Public access to spatial information
On October 31, 2020, the regulations which are the basis for creating and updating spatial information sets, including spatial data created for spatial development acts (especially local spatial development plans) entered into force. Issues related to the creation, maintenance and making available of spatial information sets are covered by provisions of the Act on the […]
Period of Validity of the Building Permit
Building permits in Poland are not granted indefinitely, whatever the building structures they apply to. So how much time does a permit’s holder have to exercise it? Building permits in Poland are not granted indefinitely, whatever the building structures they apply to. So how much time does a permit’s holder have to exercise it? Article […]
Problems with obtaining certificates of independence of car parks
Building underground car parks has become a very popular solution, especially in urban areas. From the legal perspective, a car park may be subject to separate ownership of premises or constitute shared property – the choice being up to the investor. However, in order to distinct the ownership of a car park unit, it is necessary […]
ADMISSIBILITY OF OWNERSHIP TRANSFER OF A PART OF A DEVELOPED PROPERTY
As a result of various factors, real property transactions practice shows, it sometimes may occur that one building is situated on the border of two or more adjacent plots of land. Such circumstances may result in legal complications, which make it impossible to conclude such a transaction and sell only one of such plots of land […]
Malls in the second phase of COVID -19
The growing number of people infected with coronavirus has forced the introduction of instruments to fight against the second phase of COVID-19 epidemic. The instruments involved in this fight, have a real impact on operating in many different sectors of the economy, including activities within commercial and service facilities. For the purposes of this publication, […]
IMPORTANT TIME LIMITATIONS CONCERNING BUILDING (AND OCCUPANCY) PERMITS INVALIDATION RISKS – PRACTICAL COMMENTS
In the practice of the construction projects, it happens that the building permit or the occupancy permit (even though formally legal and valid) includes formal incorrectness or irregularity which, although not having any impact on the use of the facility, creates the theoretical risk of invalidation of a building or occupancy permit, and until now […]
Legalisation of unauthorised construction after 19 September 2020
Amendment to Construction Law 19 September 2020 marked the coming into force of the Act of 13 February 2020 Amending the Construction Law and Some Other Acts (henceforth the Amendment; Journal of Laws 2020, item 471). It introduced a number of changes aimed at cutting red tape around construction projects and giving investors greater legal […]
Protective function of tax interpretations – chosen examples
In the judgment dated November 26, 2019 the Voivodship Administrative Court of Rzeszów, in case No I SA/Rz 730/19 revoked both decisions of tax authorities and discontinued tax proceedings in a case in which according to tax authorities, the taxpayer should settle VAT on a transaction differently, although this settlement complied with the individual tax interpretation […]
Time limit for declaring a permit invalid under the Construction Law
Under current provisions of the Construction Law, in many cases there is no time limit for declaring building or occupancy permits invalid. As a result, these decisions can be challenged even many years after they were issued. This lack of stability of decisions, in turn, translates to a great extent into uncertainty relating to the […]
Amendment to Construction Law – part II
On 19 September 2020, revolutionary changes to Poland’s construction regulations are coming into force. The amendment to the Construction Law that MPs passed on 13 February 2020 altered nearly 60 of its provisions. The aim is to expedite construction projects, and to make construction-related decisions more stable and predictable. In part I of our article, […]
DOES AN INDIVIDUAL TAX INTERPRETATION PROTECT THE TAXPAYER?
“One of the key features of a business-friendly economic system is stability and predictability of the legal system. Laws and regulations, among other things, establish a system basis for conducting business activity, they define rules of conduct between entrepreneurs, as well as between companies and public institutions, including fiscal authorities. It is clear that conducting […]
Amendment to Construction Law – part I
On 19 September 2020, revolutionary changes to Poland’s construction regulations are coming into force. The amendment to the Construction Law that MPs passed on 13 February 2020 altered nearly 60 of its provisions. The aim is to expedite construction projects, and to make construction-related decisions more stable and predictable. The most important changes concern the […]
COVID-19 ANTI-CRISIS SHIELD FINANCIAL AID FOR LARGE ENTREPRENEURS
In relation to the finalisation of the notification procedure for the European Commission, the process of accepting applications for subventions under the governmental scheme – Financial Shield of the Polski Fundusz Rozwoju S.A. (Polish Development Fund – PFR), has already been launched for Large entrepreneurs. The Financial Shield is another form of financial support addressed […]
COVID-19 ANTI-CRISIS SHIELD FINANCIAL AID FOR LARGE ENTREPRENEURS
In relation to the finalisation of the notification procedure for the European Commission, the process of accepting applications for subventions under the governmental scheme – Financial Shield of the Polski Fundusz Rozwoju S.A. (Polish Development Fund – PFR), has already been launched for Large entrepreneurs. The Financial Shield is another form of financial support addressed […]
Changes to geodetic laws come into force
On 31 July 2020, most provisions of an amendment to the country’s geodetic laws that the Sejm passed in April will come into effect. The amendment, officially titled “Act of 16 April 2020 amending the Geodetic and cartographic law and some other acts” (henceforth “Amendment”), introduces a number of changes designed to expedite construction projects, […]
POLAND’S ANTI-CRISIS SHIELD 4.0. – KEY UPDATES
On 24 June, 2020 the Law on subsidies to interest rates on bank loans granted to entrepreneurs affected by COVID-19 and on simplified procedure for approval of the arrangement in connection with COVID-19, i.e. the so- called Anti-Crisis Shield 4.0, came into force. Below, we briefly summarize some of the changes introduced by the Law […]
Historical monuments in the Construction Law Act of 7 July 1994
The Construction Law Act of 7 July 19941 (henceforth the Construction Law) stipulates that its provisions are without prejudice to separate regulations, and in particular to regulations pertaining to the protection and care of historical monuments2 – sites and structures entered in the register of historical monuments, and sites and structures subject to conservation protection […]
IV STAGE OF ECONOMY DEFROSTING – ABOLITION OF RESTRICTIONS FOR THE ECONOMIC ACTIVITY
This week, the Polish Government has announced the entry into the next, and according to earlier announcements, the last stage of defrosting the domestic economy, and thus the abolition of existing restrictions on business activities introduced in connection with the COVID-19 epidemic. The sixth in a row Regulation of the Council of Ministers on the […]