Discounts on Perpetual Usufruct
Businesses who are perpetual usufructuaries of Polish State Treasury properties may be able to apply for discounts on annual fees for 2020 to help ease the impact of the pandemic.
According to a recent PwC and Urban Land Institute survey (Emerging Trends in Real Estate 2021), the perception remains that real estate is one of the few assets that generates a satisfactory ROI. Especially in today’s climate. The survey also found that turbulence can be expected, in particular, for owners of shopping centres and office buildings in the months ahead. Those with a keen grasp of risk assessment and knowledge of what support mechanisms are available has never been more important.
As in a host of other European states, Poland’s anti-crisis measures have been put in place to support and sustain the economy. Anti-Crisis Shield 4.0 gives businesses the opportunity to pay lower annual fees for 2020 on perpetual usufruct on Polish State Treasury-owned real estate only if the relevant documentation is submitted by 31 January 2021.
The discount, or reduction in fees, on offer is proportional to the number of ‘pandemic’ days in 2020 and will be as high as approximately 80%, so is certainly worth taking advantage of. In order to qualify, businesses must meet the three following conditions:
- The head of the county or mayor should be notified about the payment of the reduced fee by 31 January 2021 together with a declaration of a drop in economic turnover. This ‘drop’ must be at least 15% in any 2 consecutive months (or 25% in any month) of 2020 compared to the same period in 2019.
- A declaration of no arrears in the payment of public-law liabilities as of the end of Q3 2019 should be submitted.
- A declaration that the real estate is used solely for business purposes should be submitted together with basic information regarding the business in question, its activity and any received public aid.
2020 is Dead. Long live 2021!
2021 has been tough but we can hope to move forward and return to the real estate optimism so indicative of the Polish market in recent years.
In fact, CEE can look positively on the year ahead. According to the CBRE “2021 EMEA Real Estate Market Outlook” report, CEE “will continue to outperform over the next five years”, and CEE Investment volumes are forecast to grow by about 8.5% in 2021.
by Przemysław Kastyak, Partner, Head of Construction, Penteris
As the Construction Practice frontman of Penteris, Przemek’s industry-specific knowledge, specialised skills, and depth of experience in landmark projects are widely sought after on the real estate and construction market.