The new law in Poland related to the change of perpetual usufruct of land into full ownership

There is currently underway the legislative change in Poland aiming to transform the right of perpetual usufruct of land built for housing purposes into land ownership. Under the new provisions, the owners of flats and commercial premises in blocks of flats and single-family houses will become the owners of the land. However, Article 1 para. 9 of this Act may cause additional difficulties in the use of this right by foreigners who own land in Poland. In order for the transformation to take effect in their case, the minister competent for the internal affairs must issue a relevant permit. On the day when such a permit becomes final, one can talk about the transformation. According to lawyers, however, it is an unnecessary step that will only extend the entire process. A foreigner who owns the building under the same law will also become the owner of the land. Therefore, doubts arise due to the status of the land until the decision is issued by the minister and the fact whether such a process is justified. The Ministry, in turn, ensures that the discussed provisions of the new act will not refer to the transformation of the foreigner’s share in perpetual usufruct and will not cause any problems. The regulations in question will come into force on January 1, 2019.