Perpetual usufruct is specific to the Polish civil law and is one of three property rights concerning the use of land, the remaining two being ownership and limited property rights. Perpetual usufruct involves delegating the use of a land property which is owned by the State Treasury, the local government or their associations to a natural or a legal person for a fixed time of 99 years (in some cases less but not less than 40 years). This mainly applies to land located within the administrative borders of cities. Before the end of the contract, a perpetual user has the right to request an extension of the contract for a period of another 40 or 99 years.
After the acquisition of the property, a usufructary makes the first perpetual usufruct payment of 15% to 25% of the price of the land (a one-time fee). The percentage is determined by the owner of the property after obtaining a valuation from a property appraiser. Annual fee payment is due by the end of March each year. The fee depends on the agreed property use purpose.
If the land was given to perpetual use for more than one purpose, the percentage rate of the annual fee shall be calculated based on the primary use specified in the contract.