The Polish Civil Code distinguishes between: a lease (najem) which grants the right to use property for a definite or indefinite period of time subject to payment; and a tenancy (dzierżawa), which governs the right to use and collect profits from real estate for a definite or indefinite period of time subject to payment.
Last modified 13 Mar 2025
The term of a tenancy (dzierżawa) can be definite or indefinite. A tenancy is regarded as having an indefinite term where the parties agree on a period of over 30 years and the initial term of the lease has come to an end. The tenancy continues indefinitely with either party having the right to terminate within a relatively short statutory time of up to one year. In the absence of a contrary agreement, the tenancy of an agricultural land may be terminated by notice one year in advance at the end of a tenancy year, and the other tenancy six months in advance before the lapse of a tenancy year.
The term of a lease can be indefinite or definite with a maximum term of 10 years, or in the case of a lease concluded between 'entrepreneurs' (which, under Polish law, are defined as natural or legal persons, or non-corporate organisational units, conducting economic activity on their own behalf), 30 years. A lease (najem) is regarded as having an indefinite term where the parties agree on a period of over 10 years (or 30 years for a lease between entrepreneurs) and the initial term of the lease has come to an end. The lease continues indefinitely with either party having the right to terminate within a relatively short statutory time of up to three months.
Last modified 13 Mar 2025
The Protection of Tenants and Municipal Housing Resources Act protects all tenants in both the public and private sectors, but does not apply to letting agreements for boarding houses, hotels, halls of residence and dormitories, or premises which are at the disposal of the Military Housing Agency.
The scope of the term 'tenant' has been treated in a broad sense by the provisions of this Act.
The tenancies can be definite or indefinite. There are limitations on the size of security deposit that can be required and the extent to which the tenant can be required to repair the property.
The level of rent is not regulated but the landlord may increase the rent or other charges for the use of the premises by giving notice of termination of the existing rent or other charges for the use of the premises, at the latest at the end of the calendar month, subject to the notice periods. The term of notice for rent or other charges for the use of the premises shall be 3 months, unless the parties agree on a longer term in the contract. . The tenant has certain rights to contest this.
The grounds on which the landlord can terminate a residential lease are limited.
There are no specific regulations apart from the general law applying to leases of commercial property. There are some statutory regulations affecting the liability of a hotel operator for loss or damage to property made to the hotel by a hotel guest, unless the loss or damage occurred as a result of superior force, the nature of the property itself or the actions of the guest.
Last modified 13 Mar 2025
A tenant has no right to continue to occupy real estate when a lease has expired. However, if the tenant continues to use the leased property after the expiry of the initial term with the landlord's consent, the agreement is regarded as extended for an indefinite period of time. Other provisions can be stipulated in the agreement.
Last modified 13 Mar 2025
Tenants enjoy security of possession as long as they have the benefit of a binding lease agreement in relation to the leased property. The landlord cannot force the tenant to leave the property without an enforcement order from the court. The tenant can, by a notarial deed, agree to accept enforcement proceedings for eviction. This reduces the amount of time it takes to obtain a court order since the court's role is then limited to verifying the validity of the notarial deed.
However, the eviction orders are not executed in the period between 1 November and 31 March next year, if the premise for temporary purposes was not indicated to the person to be evicted.
Last modified 13 Mar 2025
Leases invariably contain a provision allowing the landlord to terminate on breach of the lease (after the tenant has been warned) or on non-payment of rent. Termination for non-payment of rent is possible after two consecutive rental periods. Notice is not required where the tenant has a lease for use only (najem) (but where the lease for use only is a lease of premises (najem lokalu), the landlord must warn the tenant in writing and give him an additional time limit of one month to pay the rent arrears). A three-month notice period is required in relation to a tenancy (dzierzawa).
The landlord must seek a court order in order to recover possession of the property. The court order and related proceedings often take several months. The tenant can, by a notarial deed, agree to accept enforcement proceedings for eviction. This reduces the amount of time it takes to obtain a court order since the court's role is then limited to verifying the validity of the notarial deed.
However, the eviction orders are not executed in the period between 1 November and 31 March next year, if the premise for temporary purposes was not indicated to the person to be evicted.
Last modified 13 Mar 2025
Local authorities have certain rights to acquire real estate on a compulsory basis for public purposes and this includes property held under leases.
Leases of property subject to compulsory purchase expire after three months from the date the compulsory acquisition order becomes final. Compensation is payable by the authority to the owner of the expropriated real estate and the authority is obliged to ensure the tenant is provided with alternative accommodation.
In the case of a transfer of ownership of leased property, the buyer automatically enters into the lease as landlord and may terminate the lease within a statutory time period. Where the lease agreement is for a fixed term and was concluded with a certified date (ie a date confirmed by an official authority, such as a tax office or notary), the tenant has a degree of legal protection against termination by subsequent owners. In such cases, the agreement may not be terminated early if the tenant was given possession of the leased property before the transfer of title.
However, based on the regulations for civil proceedings which took effect from 3 May 2012, the above mentioned protection for tenants does not apply if the property was sold as part of enforcement or bankruptcy proceedings initiated after 3 May 2012. A purchaser who acquires real property which is subject to a lease or tenancy agreement concluded for a period of more than 2 years as part of enforcement or bankruptcy proceedings initiated after 3 May 2012 may terminate the lease or tenancy agreement on one year's notice (unless the lease or tenancy agreement provides for a shorter termination period) even though the lease or tenancy agreement was concluded for a definite period with a certified date (or the rights arising out of the lease or tenancy agreement were registered in the relevant land and mortgage register) and the tenant was given possession of the leased property.
Last modified 13 Mar 2025
In general, the parties are free to contract as they wish. For residential leases, deposits of one month's rent are common. For commercial leases, it is more common for the tenant to provide a bank guarantee amounting to the equivalent of three months' rent and service charges. A notarial deed involving voluntary submission to enforcement proceedings is also fairly common. This reduces the amount of time it takes to obtain a court order to evict the tenant since the court's role is then limited to verifying the validity of the notarial deed.
A landlord may also seek additional security for less than one year's rent arrears by taking a charge over the tenant's assets at the property (save to the extent that such assets are exempt from seizure).
Last modified 13 Mar 2025
Leases normally restrict the use of the leased property to a particular use (restaurant, office, etc), and the tenant cannot change the use of the property without the landlord's consent.
The landlord and the tenant may also be restricted by planning laws.
Last modified 13 Mar 2025
Yes, however in the case of improvements made by the tenant, the landlord may either leave the improvements in place upon termination of the lease and pay the tenant appropriate compensation or alternatively the landlord may require the property to be restored to its former state. In most lease agreements, alterations and improvements require the landlord's prior consent. The agreement may state that such consent is not to be unreasonably withheld or delayed.
Last modified 13 Mar 2025
Generally, if such a right is not specifically excluded in the agreement then the tenant may transfer its rights to occupy the real estate to a third party. However, according to most agreements this can only be done with the landlord's consent.
Sublease is also possible but requires a landlord’s consent (or lack of protest in case of the lease). In the case of residential leases, the landlord's consent for sublease is mandatory. However, the sublease expires no later than the date of ‘basic obligation’ expiration.
Last modified 13 Mar 2025
It is standard practice to link rent reviews to an appropriate price index. Adjustment is often on an annual basis for commercial leases.
In order to increase the rent at review the landlord under a commercial lease must notify the tenant of the increase at the end of the calendar month no later than one full calendar month before it is to be implemented. This does not apply to leases of business premises completed before 1 January 2005.
Pursuant to the Article 15ze1 of the Act on specific arrangements related to the prevention, counteraction and control of COVID-19, other communicable diseases and emergencies caused by them, during the ban on trading at a retail facilities offering a sales area of more than 2,000 m2 (“Large-Scale Shopping Centres”), concerning the tenancies/lease/other similar contracts by which the retail space is granted with the aim to use it, the level of provision of tenant/lessee is lowered to 20% value of contractual provision if the contract was concluded before 14 March 2020 and during the period of 3 months after lifting each of the bans – to 50% value of contractual provision if the contract was concluded before 14 March 2020. In case if lowering the provision were not justified on the ground of article 3571 of the Polish Civil Code (general rebus sic stantibus clause), both of the parties shall have the right to demand lowering the abovementioned contractual provision by the court.
Last modified 13 Mar 2025
The most common indexation method is a link to the Polish Consumer Price Index (CPI) published by the Central Statistical Office (GUS), but in some cases the international Harmonized Consumer Price Index or other international indexes are used. It is also standard practice to link the rent to a valuation of the fair market value by using comparisons with the rent for similar properties.
Last modified 13 Mar 2025
VAT is charged on rent at the rate of 23% in relation to leases of commercial property (including agricultural real estate). Short-term leases are subject to a VAT rate of 8%.
Last modified 13 Mar 2025
There are several options available to the landlord depending on the specific circumstances and what the landlord is trying to accomplish.
Such a call should be addressed to the tenant immediately after it becomes clear that attempts at a fully amicable settlements have failed. The demand for payment should include the exact details of the landlord and tenant, a precise statement of the amount of rent and other charges due, a detailed calculation of the arrears, a deadline for payment, information on the consequences of further non-payment (result in the matter being taken to court), the bank account number for payment, the legal basis for the claim.
If the tenant, after receiving a call for payment of rent arrears, does not pay the obligation within the prescribed period, the landlord can take the matter to the court. The court decision, together with an enforcement clause, constitutes an enforceable title that allows enforcement of outstanding debts to begin.
If the tenant of the premises is in arrears in the payment of rent for at least two full payment periods and the landlord intends to terminate the lease without notice, the landlord should give the tenant written notice giving the tenant an additional period of one month to pay the outstanding rent.
The landlord may have a right to draw down from a cash deposit, if available, to recover the rent arrears or other amounts due under the lease. Additionally, if the tenant has provided a bank guarantee to ensure the fulfillment of all obligations arising from the lease agreement during the lease term, the landlord is entitled to draw on such a bank guarantee.
If the tenant fails to perform or improperly performs any of its obligations under the lease and has provided the landlord with a parent company guarantee, the guarantor shall fulfil these obligations in favour of the landlord and pay any rent arrears and other sums due in place of the tenant.
Last modified 13 Mar 2025
A landlord will usually require a cash deposit or rent guarantee equivalent to three months' rent (plus VAT) and three months' service charge (plus VAT).
Last modified 13 Mar 2025
The landlord must repair and maintain common areas and the structure of the building. Each tenant is usually required to pay a proportion of the costs incurred by the landlord in relation to the maintenance and repair of common areas. The proportion payable is based on the size of the unit leased by the tenant. Certain expenses are normally excluded from the service charge. These include the initial development of the building or repairs to the structure itself, although in leases of commercial property there are fewer exclusions from the service charge.
Last modified 13 Mar 2025
The landlord must maintain the leased property so that it is fit for its purpose throughout the period of the lease. This obligation cannot be contracted out of in the agreement. The landlord is liable for defects in the leased property which, wholly or partially, prevent it from being used for its intended purpose according to the lease. In such cases, the tenant may request a rent reduction or, if the defects are irreparable or the landlord refuses to repair the property, may even withdraw from the agreement. The tenant is responsible for minor repairs. This term is not defined by Polish law and the definition depends on the specific circumstances. Each party pays for the repairs for which it is responsible. The parties may, however, agree for a larger proportion of the costs to be passed on to the tenant.
Last modified 13 Mar 2025
Each tenant is usually required to pay a proportion of the costs incurred by the landlord for the maintenance of common utilities. The proportion payable is based on the size of the tenant's unit. Service charges usually include utilities such as electricity, water, power and telecommunications.
Last modified 13 Mar 2025
The landlord generally insures the real estate. The tenant insures its own assets and insures itself against third party claims. However, a proportion of the premium payable by the landlord is usually included in the service charge paid by the tenant.
Last modified 13 Mar 2025
What is the usual length of each type of commercial lease?
The term of a tenancy (dzierżawa) can be definite or indefinite. A tenancy is regarded as having an indefinite term where the parties agree on a period of over 30 years and the initial term of the lease has come to an end. The tenancy continues indefinitely with either party having the right to terminate within a relatively short statutory time of up to one year. In the absence of a contrary agreement, the tenancy of an agricultural land may be terminated by notice one year in advance at the end of a tenancy year, and the other tenancy six months in advance before the lapse of a tenancy year.
The term of a lease can be indefinite or definite with a maximum term of 10 years, or in the case of a lease concluded between 'entrepreneurs' (which, under Polish law, are defined as natural or legal persons, or non-corporate organisational units, conducting economic activity on their own behalf), 30 years. A lease (najem) is regarded as having an indefinite term where the parties agree on a period of over 10 years (or 30 years for a lease between entrepreneurs) and the initial term of the lease has come to an end. The lease continues indefinitely with either party having the right to terminate within a relatively short statutory time of up to three months.
Last modified 13 Mar 2025