Since the start of work on the law regulating REIT/FINN entities, it has been

REIT (Real Estate Investment Trust) / FINN (pol. rental investment companies) are special purpose vehicles or investment funds set up to invest in the market for property for rent.

This solution, which has been present in the world since the 1960s, operates in around 40 countries worldwide, including several in Europe. The purpose of REIT entities is to enable investors (primarily individuals) to invest in the real estate market. REITs operate on the basis of country-specific regulations.

Characteristic features of REITs include:

  • an annual dividend payment of min. 80% of the profit,
  • the use of tax preferences, and
  • the listing requirement practised in many countries.

Work on the law regulating REITs (known in Poland by the acronym FINN - companies investing in real estate leasing) began in 2016. In August 2016, the REIT Association was registered to support the work on the law.

The first draft of the law regulating REITs was published on 14 October 2016 and the next version of the draft was published on 27 October 2017. The third version of the draft law was made available on 27 April 2018.

The last draft differed from the previous ones in a fundamental way - it did not provide for the possibility to invest in commercial real estate but only in residential real estate. The draft was referred to the Parliament - the first reading took place on 2 October 2018..

In the following years, the work on the regulation of REITs was suspended - the work on the draft, which had been initiated in the Parliament due to the expiry of the term of office, was interrupted.

The concept of introducing REITs in Poland was supported in 2019 by the Minister of Business and Technology (later Minister of Development) - Jadwiga Emilewicz - but a new draft law has not been prepared.

At the beginning of 2021, an Inter-Ministerial Team for REITs was established, which was chaired by Anna Kornecka, Deputy Minister for Development, Labour and Technology. Consultation meetings were held with industry organisations and business representatives, including the PINK Association, the REIT Association, Lewiatan and the RDS.

On 23 February 2021, the REIT Associations and the PINK Association signed a cooperation agreement to promote in the public space and popularise information on REITs and to support possible legislative work.

On 19 April 2021, the REIT and PINK associations sent a letter to Deputy Minister Anna Kornecka presenting the assumptions on the basis of which the draft FINN law should be prepared..

Representatives of both associations were appointed to the Inter-Ministerial Team on REITs as external advisors. The first meeting of the Team was held on 26 July 2021.

Following the dismissal of Deputy Minister Anna Kornecka from the post - on the basis of Order No. 286 of the Prime Minister of 1 December 2021 amending the Order on the Inter-Ministerial Team for the development of regulations on real estate rental investment entities - further work on REITs was entrusted to the Ministry of Finance. The person theoretically responsible for the work on REITs became Deputy Minister Piotr Patkowski, but no work was undertaken.

After the change of government, the real estate market is waiting for work on the REIT law to begin. We expect that the works will be managed by the Ministry of Finance and we very much hope for their imminent commencement - the statements of the Minister of Finance, in particular in the introduction to the panel at the last Real Estate Industry Leaders' Meeting organised by the Rzeczpospolita daily on 28.02.2024, or in an interview in the Puls Biznesu daily on 11.03.2024, fill us with hope.

On April 3, 2024 The Deputy Minister of Development and Technology, Jacek Tomczak, organised a meeting to which representatives of the construction and real estate industry were invited, in particular industry organisations, including PINK. At the meeting, the Ministry presented preliminary assumptions for REIT regulation, it was expressed that this was an important topic that would be pursued in the short term. The presentation given at the meeting is available here.

On April 10, 2024, PINK organised the Conference - ‘REIT, if not now then when’, in which Polish and foreign industry organisations were partners: European Public Real Estate Association (EPRA), the Real Estate Committee of the National Chamber of Commerce (KIG), the Lewiatan Confederation, the Polish Council of Shopping Centres (PRCH), the Polish Green Building Council (PLGBC), the Polish Association of Development Companies (PZFD), the REIT Association Poland, the Royal Institution of Chartered Surveyors (RICS), the Urban Land Institute (ULI Poland). A representative of the Ministry of Finance and a representative of the Ministry of Transport also participated in the conference as speakers. The broad support of many organisations demonstrates the importance of the topic to the industry. The conference was attended by more than 150 people.

On May 22, 2024 was held a roundtable on REITs as part of the CEE Summitof which PINK was a partner together with the REIT Poland Association and ULI. It was attended by  representatives from EPRA, the Exchange Segro as well as the industry.

Publications on REITs can be accessed by entering the search term ‘REIT’ in the search box on our website.