Developer companies are threatened with bankruptcy

Developer companies are threatened with bankruptcy

In connection with the introduction of the Act concerning transformation of the right of perpetual usufruct into the ownership right to real estate, entrepreneurs engaged in the construction of flats will be obliged to reimburse public aid which they have never received.

When determining the content of the Act, the EU regulations on state aid were taken into account. However, the effects of such actions have not been taken into account. The entrepreneur will be obliged to pay the difference between the market value of the land and the sum of annual transformation fees if, as a result of the transformation, the aid limit is exceeded.

Large developers or housing associations can easily exceed the EUR 200 000 limit over 3 years. According to simplified calculations of officials, entrepreneurs who exceed the limit will be obliged to return 80 percent of the value of the real estate. Another 20 per cent of the company or cooperative will pay 20 annual transformation fees.

All in all, there are huge amounts at stake. On a national scale we can speak of billions of zlotys.




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