Introduction
Poland’s real estate market has been thriving, attracting interest from foreign buyers looking to invest in residential and commercial properties. The process of foreign ownership of property in Poland is straightforward for EU/EEA/Swiss citizens, who can purchase real estate without any restrictions. However, for non-EU citizens, additional permits may be required depending on the property type.
EU citizens don’t face any restrictions when it comes to buying real estate in Poland, whether it’s for living in, conducting business, or renting out a property1. On the other hand, non-EU citizens must familiarize themselves with specific legal requirements, including securing a permit for purchasing houses or agricultural land2. Furthermore, Poland offers a variety of property types, from modern apartments in bustling cities to scenic country homes, catering to diverse preferences and investment goals.
Key Takeaways: How to Buy a Property in Poland
- Poland’s real estate market is growing and well-regulated, attracting many foreign investors.
- EU/EEA/Swiss citizens can freely purchase property in Poland without additional permits.
- Non-EU citizens may need permits for certain types of property acquisitions.
- A variety of property types are available, including residential and commercial options.
- Legal services are essential for navigating the buying process and ensuring a smooth transaction.
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Introduction
Poland’s real estate market is increasingly attracting the attention of non-Polish residents looking to invest in property. As an emerging hotspot for foreign investment in Polish real estate, understanding the conditions under which foreigners can own property is crucial. Before engaging in the process of buying property in Poland, it is essential to gather comprehensive information about the market and legal landscape involved.
Non-EU or EEA citizens interested in buying property as a non-Polish resident must obtain a permit from the Ministry of the Interior for purchasing homes with plots, while no permit is required for apartments. This flexibility has made Poland a desirable location for foreign investments compared to countries like Greece and Denmark, where permit requirements are more stringent and restrictive3.
One of the initial steps in the property buying process is understanding the financial commitments involved. For example, in Poland, the “2% program” has introduced loan limits and down payments that shape the affordability and accessibility of the market. Single individuals can borrow up to 500k PLN, while couples are allowed a maximum loan of 600k PLN, with the down payment capping at 200k PLN, placing the purchase price limit at 700k PLN for singles and 800k PLN for couples4. This nuanced financial insight is vital for any non-Polish resident planning to delve into the Polish real estate market.
The loan stipulations also come with age requirements, whereby applicants must be under 45 years old unless at least one person in a couple meets this age criterion4. For those eligible, the program offers an initial subsidy rate that meaningfully reduces monthly interest payments, making property investment more financially manageable.
The surge in demand resulting from these subsidies has notably affected apartment prices, with some areas witnessing an increase of 10%4. This dynamic underscores the importance of timely and informed decision-making when investing in Polish real estate.
Understanding the buying processis an integral part of this journey. Familiarizing oneself with the real estate landscape, the types of properties available, and the pertinent legal requirements can make all the difference in making a sound and profitable investment as a non-Polish resident.
Legal Requirements for Foreigners Buying Property in Poland
The property ownership rules for non-Polish individuals in Poland vary depending on the buyer’s nationality. It is essential to be familiar with the legal requirements for foreigners buying property in Poland to ensure seamless transactions and compliance with local laws.
Requirements for EU/EEA/Swiss Citizens
EU/EEA/Swiss citizens and legal entities do not face significant restrictions when purchasing property in Poland. They can buy residential properties and commercial real estate without needing additional permits or ministerial consent. This ease of access is intended to encourage investment in Polish real estate, where residential property prices have shown a consistent increase, averaging a 2.1% rise per quarter5. The average price per square meter for residential properties in Poland is around €2,6975.
Requirements for Non-EU/EEA/Swiss Citizens
Non-EU/EEA/Swiss citizens generally need a permit from the Ministry of Internal Affairs to buy property in Poland. However, there are exceptions for specific types of properties such as residential properties, garages, and houses under certain conditions. Acquiring these permits requires compliance with several detailed criteria, which include proving one’s ties to Poland. These can be demonstrated through marriage to a Polish citizen or holding specific residence permits. The Minister of the Interior assesses each application based on the risks to state security, public order, or social policy6.
Specific Permits and Documents
There are specific permits and documents required to complete the property purchase process. Notary requirements include valid ID, a company extract (if applicable), power of attorney, land registry excerpts, and previous purchase documents. Additionally, foreigners acquiring property must not exceed 0.5 ha for personal use6. Stamp duty for permits issued for property acquisition is PLN 1,570, while issuing a promissory note costs PLN 986. Stamp duty for power of attorney and issuing a certificate is PLN 17 each6.
Understanding the legal requirements for foreigners buying property in Poland is critical for investors. Despite the complexity, the robust property ownership rules for non-Polish individuals in Poland offer a stable investment environment, highlighted by the steady rise in property values and extensive protections.
Read moreabout the specifics of acquiring permits and maintaining compliance when buying property in Poland5.
Types of Properties Foreigners Can Purchase in Poland
Foreigners have various options when it comes to purchasing property in Poland. The possibilities range from residential apartments and houses to commercial spaces, and even agricultural and forestry lands under specific conditions.
Residential Properties
Foreigners interested in acquiring residential property in Poland, such as apartments or houses, often find the process relatively straightforward. Citizens of the European Economic Area (EEA) and Switzerland are exempt from needing a permit to purchase residential property in Poland7. These properties provide an excellent entry point into the Polish real estate market, allowing foreigners to own homes in vibrant cities or serene countryside areas.
Commercial Properties
The purchase of commercial property in Poland is an appealing venture for foreign investors. With the growing economy, commercial spaces such as shops, office buildings, and warehouses present numerous opportunities for return on investment. Typically, EEA and Swiss nationals do not require a permit to buy commercial property in Poland8. However, post-Brexit, British citizens must obtain a permit to purchase such properties7.
Agricultural and Forestry Lands
Acquiring agricultural and forestry lands in Poland as a foreigner entails specific restrictions and requirements. Non-EU/EEA nationals need to secure a permit to purchase these types of properties8. The foreign purchase of agricultural land in Poland is subject to regulations intended to protect local farming interests. To obtain a permit, the investor must demonstrate a valid connection to Poland, such as Polish ancestry, marriage to a Polish citizen, or engaging in agricultural activities7. Detailed information on these procedures can be found here.
Can Foreigners buy Real Estate in Poland?
Buying a house in Poland as a foreigner is now more accessible than ever. Individuals from EU/EEA/Swiss countries can freely buy and sell real estate in Poland without any restrictions9. Non-EU citizens, however, need to obtain a permit from the Ministry of Internal Affairs and Administration, especially when purchasing farmland where additional approval from the Minister of Agriculture is required9. This permit must be issued within a maximum of two months9.
Interestingly, all foreigners are exempt from requiring a permit when purchasing individual residential premises, such as flats in apartment buildings9. This provision makes buying a house in Poland as a foreigner or an apartment relatively straightforward.
New apartments from developers can also be bought and sold freely by foreigners, bypassing the need for any permits9. When engaging in off-plan property purchases, a reservation deposit of typically 5% is required upfront9. Following this, a further deposit of 15-25% within three months is often necessary, with the balance paid upon completion9. Alternatively, staged payments can be arranged as construction progresses9.
The final property ownership transition happens once construction is complete and full payment has been made. This process culminates with the signing of a final contract in the presence of a notary9. By Polish law, hiring a translator is mandatory for those who do not speak Polish while signing notary deeds9.
In terms of financial considerations, Poland’s price-to-income ratio is 9.77, ranking it 34th globally10. This ratio can impact the affordability of buying a house in Poland as a foreigner. For those who have resided in Poland for over five years with either permanent residency or long-term EU residency status, the permit requirement for acquiring real estate is waived10. The permit issued for real estate acquisition is valid for two years from the date of issue10.
For more detailed insights on the property purchase process in Poland, including legal formalities and tax implications, you can refer to this comprehensive guide.
Step-by-Step Property Purchase Process for Foreigners in Poland
Foreigners interested in purchasing property in Poland must follow a structured process to ensure a smooth transaction. This step-by-step guide to purchasing property in Poland for non-citizens provides a clear understanding of each stage involved.
Property Reservation
The first step in buying property in Poland is reserving your desired property. This usually involves signing a preliminary agreement and paying a deposit, typically around 10% of the property’s price11. This agreement secures the property for the buyer while the due diligence is conducted.
Due Diligence
Conducting due diligence in Poland’s property transactions is crucial for avoiding potential pitfalls. This step includes verifying the legal status of the property through the land register, checking for any encumbrances or legal disputes, and ensuring that all property titles are correct12. Engaging a trusted real estate professional can be particularly beneficial in navigating these checks11.
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Preliminary and Final Contracts
Once due diligence is completed, both parties sign the preliminary contract. This contract outlines the terms of the final sale and includes the deposit payment. For foreigners, particularly those from outside the EEA or Switzerland, obtaining the necessary permits from the Ministry of Internal Affairs is a crucial step before finalizing the purchase12. The final contract, usually notarized, confirms the transfer of property ownership and is followed by the payment of the remaining balance13.
Post-Purchase Obligations
After purchasing the property, several post-purchase obligations must be fulfilled. These include registering the sale with public registries and reporting the transaction to tax authorities. Additionally, new property owners might need to arrange property insurance and may consider applying for residency if they plan to stay in Poland for an extended period12.
This guide on buying property in Poland offers insight into these detailed steps to streamline your property purchase process.
Costs Associated with Buying Property in Poland
When considering real estate purchase expenses for foreigners in Poland, it’s crucial to be aware of various costs involved. The primary expenses include notary fees, taxes and transaction fees, and broker commissions. Understanding these costs can help ensure a smoother property acquisition process.
Notary Fees
Real estate transactions in Poland require notarization to be legally binding. Notarial fees depend on the property’s value. For properties valued up to PLN 2,000,000, the fee is PLN 4,770 plus 0.2% above PLN 1,000,000. For those exceeding PLN 2,000,000, it’s PLN 6,770 plus 0.25% above this value, with a maximum fee of PLN 10,00014. Additionally, foreigners should account for a registration fee for the Land and Mortgage Register, which is set at 200 PLN14.
Taxes and Transaction Fees
Purchasing real estate in Poland involves various taxes. Primarily, a VAT rate of 23% applies to new properties and undeveloped real estate. Alternatively, a Transaction Tax of 2% may be levied14. It’s also important for buyers to be aware of other associated taxes, such as those detailed in the Polish property tax guide.
Broker Commissions
The cost of engaging a real estate broker in Poland typically ranges from 2.0% to 3.0% of the transaction value, although commissions as high as 4.0% to 6.0% can also be encountered14. The increased number of licensed and unlicensed brokers in Poland reflects the dynamic nature of the real estate market11. Hence, thoroughly vetting brokers can ensure better service and cost management.
By understanding notary and broker costs in Polish property transactions alongside the required taxes, foreign buyers can better prepare for their real estate investments in Poland.
What to Consider When Choosing Between Primary and Secondary Market
When considering the differences between primary and secondary real estate markets in Poland, several factors should be taken into account. Understanding these differences can help foreigners make an informed decision when purchasing property.
Primary Market Advantages
The primary real estate market in Poland consists of newly developed properties. One of the key advantages of buying on this market is that these properties are usually built using modern architectural standards and materials. Another benefit is that buyers can often customize their new homes according to their preferences, provided they invest during the pre-construction or early construction phase. Purchasers of new houses in Poland also benefit from a lower VAT rate of 8%, applicable to houses up to 300 m215.
New buildings, especially in towns like Poznan, sell for about 10-14 thousand zlotys per sq.m (~$2500–$3500)16. This segment experiences consistent demand as prices systematically increase by 8-10% annually16. Additionally, buying new houses on the primary market involves entering a development contract as a notarial act, which ensures greater legal security15.
Secondary Market Advantages
The secondary real estate market includes existing properties that are typically ready for immediate occupation. Among the differences between primary and secondary real estate markets in Poland, one significant advantage of the secondary market is the avoidance of the construction waiting period. Buyers who need a quick move-in may find the secondary market more suitable.
Properties in this market often come with developed infrastructure and community amenities. Moreover, there is no VAT payable on secondary market purchases, which can make them more financially attractive. Prices in the secondary market, especially for finished buildings, range from 15–16 thousand zlotys per sq.m in cities like Poznan16. Foreigners citing smoother transaction processes and immediate inhabitability often prefer this market.
Comparing Key Differences:
| Primary Market | Secondary Market | |
|---|---|---|
| Quality and Modern Facilities | High – Built to modern standards | Varies – May need renovations |
| Customization | Possible during early stages | Limited or none |
| VAT | 8% on houses up to 300 m215 | No VAT |
| Price Stability | Systematic increase of 8-10% annually16 | Fluctuates but often higher for finished properties |
| Immediate Habitation | No – Requires construction period | Yes – Ready to occupy |
Weighing these aspects allows potential buyers to choose the market that best aligns with their needs and timelines, ensuring an informed real estate investment in Poland.
Resources for Finding Property in Poland
When exploring resources to locate real estate in Poland for foreign investors, several key platforms and strategies stand out for their effectiveness. Online property search platforms such as otodom.pl and morizon.pl offer a comprehensive range of listings suitable for both residential and commercial investments. These platforms are designed to facilitate the search process, ensuring that foreigners have access to detailed information about potential properties.
For those seeking a deeper understanding of the Polish real estate market, it’s beneficial to network with local real estate agents and professionals. Establishing relationships with these experts can be invaluable for navigating the market and finding the best deals. Additionally, exploring legal resources and guidelines is critical, particularly since regulations can vary depending on the type of property and the buyer’s nationality.
It’s also worth noting that real estate platforms like otodom.pl and morizon.pl often feature advanced search filters, allowing users to narrow down properties by price, location, and other vital factors. This level of customization ensures that foreign investors can efficiently identify properties that meet their specific criteria.
Moreover, attending local property fairs and exhibitions can provide valuable insights and direct contact with sellers and developers. These events are excellent opportunities to gather information on emerging market trends and investment opportunities in various regions of Poland. Furthermore, leveraging online forums and expatriate communities can also offer unique perspectives and firsthand experiences from other foreign investors who have successfully navigated the Polish real estate market.
Lastly, familiarizing oneself with the required documentation and legalities associated with property acquisition in Poland is crucial. This includes understanding the importance of property reservation agreements, the due diligence process, and the necessity of preliminary and final contracts. Foreign investors must also be aware of the specific permits needed to purchase certain types of properties, particularly those located in border areas or agricultural lands exceeding one hectare1718.
Conclusion
Navigating real estate regulations for foreigners in Poland can be an intricate process but rewarding when approached with the right knowledge and professional assistance. Foreign nationals, whether from the EU/EEA or non-EU countries, have the opportunity to invest in Polish properties. However, they must adhere to specific legal requirements as outlined by the Polish Ministry of Internal Affairs. For instance, those planning to purchase agricultural or forestry lands need a special permit, but no such permission is required for flats or apartments19.
Understanding the legislative background is crucial. The Act of 24 March 1920 sets forth that foreigners—defined as individuals without Polish citizenship or entities based abroad—must meet certain statutory conditions and submit detailed applications, including proof of legal status and financial resources19. Seeking assistance from specialized law firms, like the one managed by Advocate Tomasz Piotr Chudzinski, can simplify the process. These firms provide comprehensive services ranging from representing clients before authorities to ensuring a smooth permit application process19.
The costs associated with purchasing property in Poland include notarial deeds for sales contracts and a 2% tax on civil law transactions when buying on the secondary market. Additional expenses might arise, such as court fees for property registry entries, especially if the purchase involves mortgage funds20. With the advice and support from experts like the Oruga Group, potential buyers can effectively navigate these financial and administrative steps, ensuring their investment in the Polish real estate market is both informed and strategic real estate in Poland19.
Contact us if you are Interested in Buying Property Abroad!
FAQ
Can foreigners buy real estate in Poland?
Yes, foreigners can buy real estate in Poland. EU/EEA/Swiss citizens can buy property freely, while non-EU citizens may need a permit from the Ministry of Internal Affairs, depending on the property type and location.
What are the requirements for EU/EEA/Swiss citizens to buy property in Poland?
EU/EEA/Swiss citizens and legal entities can purchase Polish property without restrictions, similar to local citizens. Valid identification and standard property transaction documentation are required.
What do non-EU citizens need to buy property in Poland?
Non-EU citizens generally need a permit from the Ministry of Internal Affairs to buy property in Poland. However, there are exceptions for certain residential properties, garages, and houses.
What types of properties can foreigners purchase in Poland?
Foreigners can invest in various properties including residential apartments and houses, commercial spaces, and under certain conditions, agricultural and forestry lands.
What permits and documents do foreigners need to buy property in Poland?
Foreigners may need permits from the Ministry of Internal Affairs, as well as documents like valid ID, company extract, power of attorney, land registry excerpts, and previous purchase documents.
What is the process for buying property in Poland as a foreigner?
The process includes property reservation, comprehensive due diligence, signing of preliminary and final contracts, and fulfilling post-purchase obligations such as registration with public registries and reporting to tax authorities.
What are the costs associated with buying property in Poland?
Costs include notary fees (influenced by property value), transaction taxes (such as VAT or transaction tax), broker commissions, and additional registration fees for the Land and Mortgage Register.
What are the advantages of buying property in Poland’s primary market?
The primary market offers new constructions with modern amenities and lower maintenance costs. However, it may involve developer trust issues.
What are the advantages of buying property in Poland’s secondary market?
The secondary market involves existing properties which may provide smoother transactions and established neighborhoods, but could involve higher maintenance costs.
Where can foreigners find property listings in Poland?
Websites like otodom.pl and morizon.pl are valuable resources for finding various types of properties in Poland. These platforms offer extensive listings and market insights.
Source Links
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- https://cgofinance.com/buying-a-property-in-poland-by-a-foreigner/
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- https://polishmortgage.pl/2023/05/16/2-goverment-backed-mortgage-available-for-foreigners/
- https://www.polishdescent.com/post/poland-real-estate-for-foreign-investors
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- https://www.careersinpoland.com/article/finance-and-housing/how-to-buy-a-house-or-flat-in-poland
- https://www.linkedin.com/pulse/foreigners-guide-buying-residential-real-estate-poland-magdalena-mróz-bqbxf
- https://move-to-poland.uk/how-to-buy-a-house-in-poland-as-a-foreigner-step-by-step/
- https://rpms-legal.com/acquisition-of-real-estate-in-poland/
- https://www.dudkowiak.com/property-purchase-in-poland/
- https://www.dudkowiak.com/property-purchase-in-poland/buying-a-house-in-poland/
- https://realting.com/news/what-is-happening-on-the-real-estate-market-in-poland
- https://forummigracyjne.org/wp-content/uploads/2020/06/1940.pdf
- https://www.estanova.pl/en/about-us/blog/conditions-of-purchasing-real-estate-by-foreigners–23
- https://adwokatchudzinski.pl/en/blog-en/permission-to-acquire-real-estate-in-poland-by-a-foreigner/
- https://cgolegal.com/purchase-of-real-estate-in-poland/
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