PMR Construction Insight Poland

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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, […]

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, […]

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 […]

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 […]

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 […]

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 […]

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), […]

  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 […]

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, […]

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 […]

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 […]

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, […]

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 […]

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 […]

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 […]

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 […]

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 […]

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, […]

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 […]

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, […]

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 […]

“The mutual obligations of parties to lease agreements expire”: emergency measure on retail leases in the Anti-Crisis Shield Act The COVID-19 epidemic has had dramatic consequences for the functioning of shopping centres in Poland. To alleviate its negative impact on mall tenants, the Polish parliament has passed a special measure. Under Article 15ze of the […]

In contracts of various kinds, especially between entrepreneurs, force majeure refers to a circumstance that frees both parties from liability for failure to perform their obligations under the contract. The concept of force majeure is not defined in the Civil Code Act of 23 April 1963 (consolidated text: Journal of Laws 2019, item 1,145 with […]

Draft of new Developer Act In December 2019, the new government included in its legislative agenda the amendment to the so-called Developer Act – the informal name under which the Act of 16 September 2011 on the protection of the rights of buyers of apartments and single-family houses is widely known – that the previous […]

On 23 January 2020 – exactly a month after it was submitted to the Sejm, and eight days after its first reading – the lower house of Polish Parliament passed a government-sponsored package of changes to construction laws. The legislation, titled “Act Amending the Construction Law and Some Other Acts” (“Act”, “Amendment”), is now in […]

Nearly five years ago, the Parliament of Poland enacted legislation – the Act of 24 April 2015 Amending the Act of 27 March 2003 on Spatial Planning and Management – that gave local authorities the power to adopt “landscape ordinances”, an unofficial term for legal acts that lay down the terms and conditions under which […]

On 20 July 2018, the Sejm enacted an “Act on the transformation of the right of perpetual usufruct of housing properties into freehold ownership” (henceforth “the Act”), which provided for the conversion of perpetual usufructs of housing properties to freeholds as of 1 January 2019. One year on is a good time to reflect on […]

Three distinct parties are usually involved in the delivery of a construction project: the project owner, the general contractor, and the subcontractor (or subcontractors). But whereas the relationship between the project owner and the general contractor on the one hand, and the relationship between the general contractor and the subcontractor on the other, are contractually based, […]