Determination of the price of land for the purpose of acquiring the right of ownership by the perpetual user

In August 2023, an amendment to the Law on Real Estate Management (Journal of Laws 2023, item 1463) came into force, regarding, among other things, the possibility of acquiring ownership rights by land perpetual users.

In Section VIa of the Act, introduced by the legislator, separate rules were included for the sale of land to a perpetual user, in particular the determination of prices and discounts.

The price of land owned by the State Treasury, which is subject to mandatory sale to a perpetual user, has been determined by law. It will basically constitute 20 times the annual fee for perpetual usufruct – in the case of a one-time payment, and in the case of payment in installments – 25 times the fee. These regulations are aimed at speeding up the process of converting perpetual usufruct into ownership on land already developed and utilized for specific purposes.

The above-mentioned changes shape not only the time-limited procedure for perpetual users to make demands for the purchase of real estate, but also the general mechanism for determining the acquisition price of the ownership right to land sold to a perpetual user.

The price of land not used for business activities, and sold to a perpetual user, will be determined as 20 times the amount representing the product of the existing percentage rate of the annual fee for perpetual usufruct and the value of the land property determined as of the date of the conclusion of the sale agreement.

The price of land used for business activities, and sold to a perpetual user, will be determined as no less than 20 times the amount constituting the product of the previous percentage rate of the annual fee for perpetual usufruct and the value of the land property determined as of the date of conclusion of the sale agreement, but no more than the value of the land property determined as of the date of conclusion of the sale agreement.