Real Estate 23. March 2020

Poland: Anti-Crisis Shield – key changes for the real estate sector

23. March 2020
Michał Wielhorski
act legal Poland

Statutory reduction of rent in retail complexes with sales area of over 2,000 sqm
– Statutory rent reduction of 90%, applicable to retail developments with a sales area exceeding 2,000 m2, covering the period over which the Tenant’s operations are prevented/hindered (unless the Lease Agreement offers a better solution for the Tenant, in which case such solution will apply).
– The Lessor and the Tenant may apply to a court for modification of the reduction rate, subject to the principles of fairness/equity.
– No contractual penalties, interest, compensation for Tenant’s non-performance of obligations (based on the statement of reasons to the draft bill, this shall apply if non-performance results from restrictions on business operations; however, the provision is too vague and might be misinterpreted).

Perpetual usufruct fee deferred for 3 months
Deferral of the payment date for perpetual usufruct fee from March 31, 2020 to June 30, 2020.

Exemption from tax on civil-law transactions on loans
The tax on civil-law transactions will not apply to loans, yet only in case the borrower is a business entity whose liquidity has deteriorated as a result of the negative economic consequences related to COVID-19.

Suspension of retail sales tax
Further suspension of the application of the Retail Sales Tax Act. Taxpayers will not have to pay this tax between July and December 2020.

Tax on revenue from buildings deferred until July 20, 2020
Applies to the period of March-May 2020. Available to taxpayers that have suffered negative economic consequences due to COVID-19, and whose revenue in a given month is at least 50% lower than in the corresponding month of the previous fiscal year, or – in case of taxpayers that embarked on business operations in 2019 – than the average monthly revenue in that year.

Please feel free to contact us for any questions.

Michał Wielhorski
act legal - BSWW legal & tax
About the authors

Michał Wielhorski

Managing Partner

An experienced real estate lawyer, advising on all types of real property projects from the corporate, transactional and tax perspective. He works primarily with large developers, focusing on retail and office developments, and guiding clients through all stages of investment processes (incl. due diligence, permitting, financing, leasing and sale). Michał assists clients in the negotiation and execution of real property sale agreements, construction works agreements, service agreements (incl. ones with architects and other experts) and infrastructure agreements. He advises on leasing processes, negotiating and executing major lease agreements for retail and office space. He also boasts a strong track record in financing agreements.

Małgorzata Wąsowska


Małgorzata is a seasoned tax professional. Boasting 15 years of experience in taxation (incl. over 7 years of managerial experience), she has conducted and supervised hundreds of tax projects for companies operating across a diverse range of industries. Her primary strength lies in transaction advisory, incl. real estate transactions, mergers, acquisitions and the sale of enterprises or their business units. Małgorzata is involved in all tax issues handled by act BSWW. She personally deals with all major mandates, while also monitoring the work of other tax team members. From 2006 - 2015, she worked at one of the “Big Four” companies.

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