Land opportunity in Poland

A LOOPHOLE IN Polish land ownership laws means it should now be possible for foreigners to acquire agricultural freehold in that country, far sooner than originally intended.

Under the terms of EU accession, it was agreed that Poland could block foreign ownership of land for up to 12 years, the longest transition period for any of the 10 new member states.

The rules also state that farms that are rented to foreigners may only be sold to the tenants once seven years have passed since the start of the tenancy.

“Given its history of invasion and concerns about large areas being bought for speculative purposes, land ownership by foreigners is extremely sensitive in Poland,” said Adam Oliver of land agent Brown and Co, based in Torun.

But a recent change in the law has opened the way for sales to foreigners though companies.

“Before EU accession, foreigners hoping to acquire land – either directly or through companies – would have to apply for a permit from the Ministry of Interior.

“In practice this permit was never granted,” said Mr Oliver.

“But in the past few weeks a loophole has opened up, and a foreigner acquiring shares in a company with agricultural freehold will no longer have to apply to the Ministry of Interior.”

About 70% of all land sales are done privately, with freehold land values ranging from €1200/ha (£325/acre) to €3500/ha (£945/acre).