Those who wish to buy property in Poland will be pleased to know that the real estate market in Poland offers a variety of properties available for purchase, both existing houses and apartments as well as new built ones. Before one starts the process to buy an apartment in Warsaw, or another city, it is advisable to talk to a local team of experts, such as our own, to find out more about the overall steps and the expected time to finalize the property ownership documents.
| Quick Facts | |
|---|---|
| Overview on Polish real estate market | The real estate market in Poland has maintained a steady state, although it has encountered a slowdown in recent years |
|
Where to search for properties to buy in Poland |
Online platforms, newspaper ads, real estate agents, trade shows, etc. |
|
Legal framework for property purchasing in Poland |
The Act on Land Acquisition by Foreigners of March 24, 1920; The Ordinance of April 24, 2004. |
| Residence permit required (YES/NO) | NO, but non-EEA citizens must obtain a permit to buy a property in Poland |
| Permit to buy a property in Poland |
The permit is used for foreigners who want to purchase a property in Poland; The application for a permit should include information about the applicant's identity, legal status, the property to be purchased, the seller, the form of the real estate being purchased, and an explanation of the purpose of the property purchase; Citizens who are not members of the European Economic Area (EEA) or Switzerland must obtain a permit from the Minister of Interior and Administration to purchase any type of property in Poland. |
| Permit validity |
2 years from the date of issue |
| Necessary documents |
Permit (if applicable); Copies of ID or passports; Purchase agreements, etc. |
| Can obtain a resident visa (YES/NO) |
NO |
| Fees and taxes |
VAT or transaction tax, real estate commission, notary fees, land or mortgage registration fees, etc. |
| Purchase procedure |
It is advisable to first conduct due diligence on the property before purchasing it; Execute a preliminary sale agreement which includes discussing important details about the property and its price; Sign the final agreement to complete the property sale; Conduct the transfer of ownership; Apply to be registered as the owner in the land and mortgage register; Report the transaction for real estate tax purposes; Arrange new utility contracts, etc. |
| Verifying a property in Poland |
Conduct due diligence on the property and check the property ownership, review the property documents, verify its conditions, and check if it has necessary permits or approvals if needed; Our attorneys in Poland can help you with the due diligence process. |
| Mortgages |
When you apply for a mortgage in Poland, lenders usually won't lend you more than 80% of the property's value, but the amount will depend on the size of your down payment; The lender will also assess your income to make sure you can afford the mortgage payments; Your other expenses typically must not exceed 35% of your income. |
| Property types in Poland |
Residential, commercial, agricultural, etc. |
| Assistance for purchasing a property in Poland (YES/NO) |
YES, our law firm in Poland offers assistance with property registration and legal matters regarding real estate |
| Advantages of purchasing a property in Poland |
Foreigners can easily buy a property in Poland; Poland has experienced steady economic growth in recent years, making it an attractive market for property investment; Property prices in Poland are affordable compared to the rest of Europe; The purchase process is fast and straight-forward. |
| VAT rate |
– 23% (standard), – 8% (reduced for properties of a certain size) |
|
Deadline for tax registration |
14 days following the transaction |
|
Transfer of landlord status (YES/NO) |
YES, for properties with leased spaces |
| Insurance | Not mandatory, but our attorneys in Poland recommend it. |
| Types of agreements in buying property in Poland |
– property reservation agreement, – development agreement, – preliminary property purchase agreement, – final property purchase agreement. |
| Property reservation agreement – characteristics |
Ensures that the seller does not sell the property to another person for a specified period. |
| Development agreement – characteristics |
The developer agrees to build and transfer property title to the buyer for residential properties involving a developer. |
| Preliminary property purchase agreement – characteristics |
Ensures that the property sale will occur at a future date; Typically, the buyer pays the seller 5-20% of the sale price as earnest money after executing the agreement. |
| Final real estate purchase agreement – characteristics requirements |
The title to the property is transferred to the buyer upon signing it. |
| Agreements language |
Polish only; Our lawyers can help you with the translation of documents. |
| Permit required for British citizens (YES/NO) |
YES |
| Properties exempted from permit (for personal use) |
– garages, – flat or apartment in a multi-family building, – inherited properties, etc. |
| Popular destinations to buy property in Poland |
– Warsow, – Gdansk, – Krakow, – Lodz, etc. |
| Utilities automatically transferred (YES/NO) |
NO |
| Other services provided by our Polish law firm |
– company formation, – trademark registration, – litigation, – divorce lawyers, – resolving employee disputes, etc. |
Table of Contents
What are the aspects to consider before purchasing a property in Poland?
Before you start the actual process, there are also a few issues you should take into account:
- Your budget: property prices vary in Poland on a city-by city basis;
- Your financing: directly related to the point above;
- The legal process;
- Post purchase steps: these will depend on the type of real estate you purchase.
What are the steps for buying property in Poland?
Once you decide that you wish to purchase a property in Warsaw or another Polich city, there are a number of steps you should be mindful of.
- Property research: analyzing the available offers;
- Due diligence: verifying the legal status of the property;
- Preliminary purchase agreement;
- Final property agreement.
What are the taxes related to property purchase in Poland?
The tax implications for property purchase in Poland are summarized below:
- Value added tax: the VAT value is either 23% or 8% for estates of up to a certain size;
- Transaction tax: this has a value of 2% of the transaction and it is payable by the buyer;
- Property tax: varies according to rates imposed by local authorities;
- Land Register fee: 200 PLN in most cases (approx. EUR 45).
How long does it take to buy property in Poland?
The time required to complete a purchase of real estate in Poland depends on how the deal is financed and whether the property has some specific legal status. The basic procedure will include:
- preliminary agreement on sale;
- financing approval, if any;
- preparation of notarization documents;
- final sale agreement before notary;
- registration of rights of ownership in the Land Register.
We invite you to watch a short video about the property purchase process:
What is the permit needed to buy property in Poland?
A permit is an administrative decision issued as a response to a foreigner’s application. This application should contain data about the applicant’s identity, his legal status, the property to be purchased, the seller, the form of the purchased real estate and must also explain the purpose of the property purchase.
How to do property due diligence with the help of our Polish lawyers?
The due diligence process for those who buy a house in Poland, as well as those who buy an apartment, includes an analysis of the following:
- the property’s legal title;
- any mortgages on the property or the rights of use by other parties, either natural or legal persons;
- any existing agreements with third parties; if you want to buy an apartment in Krakow or in another city, checking for existing leasing agreements is an important step;
- construction compliance for the property;
- planning and zoning issues.
Why is the Land Register important to property purchasers?
One of the key steps in property due diligence process in Poland is checking the Land and Mortgage Register (“Księga Wieczysta”). Information included in the Land and Mortgage Register includes:
- ownership data on the property;
- mortgages and other financial claims;
- rights held by third parties;
- property dimensions and land use classification;
- limitations on transfer of ownership rights.
Contact our law firm in Poland if you would like to know more about buying a property in Warsaw or in another city, as well as to find out more about our services for real estate purposes. Our team can also help you open an LLC in Poland.