Tax & Legal Highlights for Real Estate – February 2019

Act of 31st January 2019 amending the act on real estate management and the act on transformation of the right of perpetual usufruct to the land developed for housing purposes into land ownership (Journal of Laws of 2019 item 270)

The amendment introduces the percentage rate of perpetual usufruct fees for real properties on which garages or parking spaces are located – which are not used for business purposes – at the level of 1% of the land price. So far, this rate has remained at the level of 3%. This change eliminates the previous rate differentiation in relation to residential real estate (1%) and garage or parking space related to the housing function (so far 3%, currently 1%).

The amendment also provides that on the land owned by the State Treasury, the discount for transforming perpetual usufruct into the ownership right shall not be lower than the discount proposed by the local self-government. The Act introduces a change to art. 9 of the Act of 20 July 2018 on the transfer of the perpetual usufruct right of the land developed for housing purposes into the ownership right, which provides that if the local government decides in the form of a resolution on the discount for a one-off payment higher than 60%, then the voivode shall automatically increase it to the same level within this area.

The Act entered into force on the 13th February 2019.


The new Waste Act

On the 5th September 2018, the amendment to the Act of 20th July 2018 amending the Waste Act and other acts (Journal of Laws of 2018, item 1592) came into force.

By virtue of the amendment, the previous acceptable period of waste storage (by a waste producer, a waste collection operator or a waste managment operator) resulting from technological or organizational processes has been shortened from 3 years to 1 year. Now the storage of waste is also limited by indicating the maximum total weight of all types of waste that can be stored as part of waste collection at the same time. This waste may not exceed half the maximum total weight of all types of waste that may be stored during the year specified in the permission. The amendment introduces the need to conduct a video system of storage or waste storage control, from which 24-hour records should be kept for a month after they have been made. In addition, the Act provides for the requirement to carry out a State Fire Service inspection as part of issuing waste permissions. The amendment also creates an obligation to establish security for claims in the form of a deposit, a bank guarantee, a guarantee or an insurance policy. The security should cover costs of disposal of waste in the event of: storage in a place not intended for this purpose, withdrawal of permit, necessity for removal of waste or remnants of fire-fighting operations or removal of negative effects or damage to the environment.


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