Statutory Limitations Period Shortened to Six Years

Good news for consumers, bad news for creditors. Soon, the general statutory limitations period will become shorter. Due to the upcoming changes to the Civil Code, creditors will have six years, and not ten, as it is now, to take action against dishonest counterparties who owe them money.

Lawmakers decided that the general prescription period that applies to most liabilities does not need to be that long and six years is plenty of time to make a claim. The advantage of the shorter period of statutory limitations is increased protection of consumers. Proponents of the new legal provisions also hope to unclog Polish courts as fewer cases will find their way to the courtroom and will need to be examined by judges.

Prolonging the statutory limitations period is not the only change that is to be introduced by the government. If the person who is owed money brings a claim to court, judges will automatically verify whether the prescription period for the liability in question expired. It is an important change, as currently, creditors may seek payment from their debtors even when the limitation period is long over. It is the debtor that in such cases may point to the circumstance and, in this way, avoid paying the debt. This gave way to companies that buy old liabilities to take advantage of the unaware debtors.

Another change to the regulations regarding the statute of limitations is determining the end of the statutory limitations period. According to the new provisions, liabilities will expire on the last day of the calendar month. This rule will not apply to debts for which the prescription period is shorter than two years.

One needs to note that not all liabilities adhere to the general prescription period. Certain types of debts are governed by separate provisions that overrule the 10 (soon: 6) year limitation. These include employment for specific work agreements, rent arrears, or provision of services not regulated by separate legal provisions.

Business Implications for Poland

Economic and regulatory developments in Poland have broad implications for businesses operating in the country. Poland’s economy, the largest in Central and Eastern Europe, continues to attract international investors and entrepreneurs seeking EU market access, competitive costs, and a skilled workforce of over 17 million workers.

For foreign companies and entrepreneurs doing business in Poland, staying informed about economic trends, regulatory changes, and market dynamics is essential for strategic decision-making. Whether you are considering entering the Polish market, expanding existing operations, or optimizing your corporate structure, professional advisory support can help navigate the complexities of the Polish business environment.

Poland offers a comprehensive business infrastructure including special economic zones with tax incentives, a well-developed banking system, modern office space in major cities, and a legal framework aligned with EU standards. These factors, combined with Poland’s strategic geographic position between Western and Eastern Europe, make it an attractive hub for businesses targeting the broader European market.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our payment institution licensing, or contact us for a free consultation.