POLAND Law and Practice Contributed by: Michał Wielhorski, Mateusz Prokopiuk, Małgorzata Wąsowska and Klaudia Michalec, act legal Poland
6.2 Types of Commercial Leases In business practice, there are different types of commercial leases, which are mainly differenti - ated by the purpose of the lease, the nature of the property, and the way in which the terms of the contract are structured – namely, short-term commercial leases and leases of: • office space; • retail space; • warehouse and logistics space; and • so-called flex spaces, especially in the office sector. Although all types of leases are based on the Civil Code, the practical application of its pro - visions in the commercial real estate sector is subject to a variety of models, adapted to mar - ket conditions. 6.3 Regulation of Rents or Lease Terms The general principles of a commercial lease agreement result from the Civil Code. Addition - ally, the sector of commercial leases is based on certain market standards, which – although they are not legal regulations – play an important role in drafting lease agreements. As an exam - ple, one can mention standard contract models concerning shopping malls, in which a base rent is accompanied by a turnover rent. It is worth noting that the situation is different in the case of residential leases. This area is sub - ject to additional regulations resulting from the Act on the Protection of Tenants’ Rights, which introduce – inter alia – rules concerning rent increases as well as restrictions on the landlord’s ability to terminate the lease. 6.4 Typical Terms of a Lease Although the Civil Code formulates general pro - visions that regulate leases, certain generally
For joint stock companies, especially those list - ed on the stock exchange, corporate govern - ance rules are much more extensive. The exist - ence of a management board and a supervisory board is mandatory, as is the regular publication of financial reports and current information rel - evant to shareholders. 5.6 Annual Entity Maintenance and Accounting Compliance The cost of the annual maintenance and ensur - ing the accounting compliance of an entity used to invest in real estate in Poland depends pri - marily on the type of legal structure, the scale of operations, the complexity of financial opera - tions, and legal issues. In the case of the sim - plest and most commonly used form – a limited liability company – annual expenditures mainly comprise full book-keeping, fees for legal ser - vices, submission of financial statements to the National Court Register, and possible remunera - tion of board members or an auditor (if required). 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time Polish law recognises several types of con - tractual relationships that allow a party to use another’s property. The basic and most com - monly used form is a lease agreement, which provides for granting the right to use a property in exchange for payment for a fixed or indefinite term. Another commonly used form is a usufruc - tuary lease – based on which, a beneficiary may use of a property and profit from the property being used.
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