Affordable real estate prices and high social standards attract buyers of apartments and country houses from all over the world to the Republic of Poland. Buying an apartment in Poland means making a profitable investment and facilitating the process of obtaining a residence permit. To the listed advantages, you can also add minimal risks in the real estate market, the presence of a thorough legislative framework, moderate costs when making a purchase and sale transaction. However, you need to invest money competently and slowly, having studied all the subtleties of the process first.
Overview of the real estate market in Poland
According to data for 2021, Ukrainians, Germans and British are most interested in purchasing Polish real estate. The number of transactions concluded by Ukrainians for the purchase of expensive, medium-cost and cheap housing amounted to 60,000 m2 of residential real estate.
The Germans took the second line of the rating, having an indicator of 40,000 m2, and the British, who bought 18,000 m2 of living space, took the honorable third place.
Demand for real estate continues to grow, including on the part of Russians and Belarusians, since among the member states of the European Union, Poland maintains democratic prices both in the primary and secondary markets.
Analysis of the real estate market in Poland shows that mainly one- and two-room apartments are being sold. The number of offers on the market is growing rapidly and, as of 2021, reached 86,500 properties.
A foreign citizen can obtain ownership of an apartment, apartment or garage without any restrictions, however, when buying a house, a large land plot (from 0.4 hectares) or an object that is located near the border zone, the approval of the Polish Ministry of Internal Affairs will be required.
If your own funds are not enough, you can get a mortgage. Banks are willing to issue loans, provided that the borrower meets all the requirements.
Foreigners buy apartments in almost all cities in Poland. The most popular are Warsaw, Krakow, Poznan, Gdansk, Lodz, Wroclaw, where favorable conditions for life and business development have been created.
According to the largest international consulting company Colliers, it is Poland (out of all EU countries) that is most attractive for large investment funds, which allows us to hope for the further development of the region.
Where and how to look for real estate to buy
You can do the search for a suitable object yourself, or you can use the services of real estate agencies. Each of these methods has advantages and disadvantages.
For example, an agent for a certain fee will help you find an apartment or a country house for 2, 3 or even 5 rooms that fully meet your needs. And although the process may take several weeks or even months, however, you will be relieved of the hassle associated with constant meetings, calls, negotiations.
For independent searches, you can use free message boards, printed publications, Internet sites or advice from friends who have lived in Poland for a long time.
A notice board is usually installed either in a supermarket, or near a public transport stop, or on the territory of a church.
As for newspapers with both local and national coverage, you should pay attention to Gazeta wyborcza, Mieszkaniec, Lokalna. Some publications are distributed free of charge in public places, others can be bought at kiosks.
The most successful solution is to visit thematic Internet resources, which allows you to explore all available options without changing the host country.
The Polish website Dom.gratka.pl is very popular with thousands of ads from real estate agents, developers and direct home owners.
List of other recommended sites:
- Gumtree.pl
- OLX.p
- Szybko.pl
- Gazetadom.pl
- Emieszkania.com.pl
- Wspollokator.pl
- Wynajmemieszkanie.pl
- Otodom.pl
How much will it cost to buy a home in Poland
Many factors affect the value of a property. Here are a few of them:
- city and region;
- area, layout, year of construction;
- condition of the adjacent territory, quality of repair and number of storeys;
- availability of infrastructure, communications, prospects for further development of the region.
As practice shows, the most expensive housing purchase is in large cities of Poland, where the cost per square meter can exceed 2,000 euros, so one-room apartments up to 1 million rubles (14,108 euros) are very rare.
In the primary and secondary real estate markets, prices vary slightly.
If you want to save money and are ready to wait for the object to be put into operation for several years, look for options on the developer's website.
Some of the money that you manage to save can be spent wisely on renovating and equipping your new home.
However, you should not be intimidated by the high prices for apartments in Warsaw - in addition to the capital, there are other cities where all the conditions for a comfortable life have been created. For example, pay attention to Krakow, which is visited by millions of tourists every year, or to Wroclaw, Lodz, Poznan and Gdansk, where there are excellent conditions for developing business and raising children.
Do not forget about the MDM program, according to which the state can compensate you for part of the funds for the purchase of an apartment if you purchase your first home of your own, while paying taxes and legally living in Poland (even with a Temporary Residence Card).
Program participants can be:
- single people under 35;
- officially registered couples where the age of the spouse is under 35;
- large families (from 3 children) without age restrictions.
In the absence of children, the state compensates single citizens and young families 10% of the cost of housing; if there is 1 child, the amount of compensation is 15%, if 2 children - 20%, if 3 or more children - 30%.
Please note that an apartment purchased under the Mieszkanie dla Młodych program cannot be rented out for 5 years from the date of the transaction.
Tab. 1 Review of prices for residential real estate in Poland as of early 2021
| Town | Price in euro per m2, primary market | Price in euro per m2, secondary market |
|---|---|---|
| Warsaw | 1958 | 2131 |
| Krakow | 1658 | 1706 |
| Wroclaw | 1426 | 1434 |
| Lodz | 1180 | 998 |
| Poznan | 1482 | 1425 |
| Gdansk | 1583 | 1582 |
Do not rush to buy the first object that comes across. Be sure to make sure that the owner is selling the apartment to you, that there are no debts for electricity and heating, that the layout and number of storeys of housing completely suit you.
If you plan to pay in cash, you need to have certificates confirming the origin of the money; otherwise, you will have to pay additional taxes, which will affect the final cost of the property.
How to buy an apartment or house, observing the law
Before buying an apartment, land or country house located in the West Pomeranian Voivodeship or another region of Poland, a non-resident of the country must read the law "On the acquisition of real estate by foreigners" and / or obtain qualified legal advice. This will help avoid difficulties and unforeseen situations, as well as sanctions from law enforcement agencies.
It is necessary to clearly understand that an individual who does not have permanent residence status or Polish citizenship, as well as a legal entity officially registered abroad, can only purchase an apartment, apartment, land plot (up to 0.4 hectares for an individual) or a garage.
If the object of purchase is a house or other object located in the border area, you need to request permission from the Ministry of the Interior of Poland. The ministry must confirm that such actions do not pose a threat to the security of the state.
If the investor is a spouse (spouse) of a Polish citizen, has lived in the country for more than 2 years and registers the property as joint property, such a permit is not required.
Also, there is no need to obtain a permit if the buyer has an EU resident card or permanent residence status and has been living in Poland for more than 5 years.
The scheme for buying real estate is quite simple:
- You need to select an object.
- Conclude a preliminary sales and purchase agreement.
- Obtain permission to purchase (if required) from the Ministry of Internal Affairs of Poland.
- Draw up a sales contract and register a deal.
- Insure real estate.
How to get permission from the Ministry of Internal Affairs
To obtain permission to purchase real estate, you must write an application addressed to the authorized bodies, pay a mandatory state fee (416 euros) and submit the following package of documents:
- a photocopy of the passport or other document confirming the identity of the potential buyer;
- photocopies of documents confirming the presence of ties with Poland;
- a statement from the owner of the real estate who is ready to sell the object of the agreement (a draft version of the agreement is also attached);
- confirmation of the buyer's solvency or a bank statement indicating the availability of credit funds (or their own).
- a certificate issued by the social insurance institution and the tax office confirming the fulfillment of all tax obligations to the state.
In addition to the costs of a permit (€ 416), you will have to pay a fee (€ 23) and a power of attorney fee (€ 4). The term for issuing a permit is from 2 to 4 months.
If additional documents are required, consideration of the appeal can take up to 6 months.
Potential buyers should take into account that the permission of the Ministry of Internal Affairs has a limited validity period (1 year) and allows you to buy real estate on a general basis.
Checking the object by a notary and signing the main contract
Before signing the purchase and sale agreement, a lawyer or attorney must check the legal status of the property. It is important that at the time of purchase there are no mortgage obligations and debts, and only the seller has the right to alienate the property. The registry data, which contains all the necessary information, is publicly available and is stored on the government portal.
The seller and the buyer conclude a preliminary civil-law contract of purchase and sale, which reflects the procedure for settlements, the amount of the deposit, the form of payment and the cost of notary services.
Mostly the size of the deposit varies from 5 to 10% of the value of the property. If the buyer terminates the contract, the deposit becomes the property of the seller, if the seller refuses the transaction, the deposit is returned to the buyer in double amount.
After the signing of the main purchase and sale agreement, the real estate is reissued to the new owner, who receives the ownership rights to the object of the agreement. Such a transaction must be officially registered with the participation of a notary, who draws up an act (certifying the right to own property), initiates payment of the tax on the transfer of ownership, changes the data on the owner of the property in the register, and also submits the relevant documents to the employees of the regulatory authorities.
Taxation and other expenses when buying real estate
In the course of registration of ownership of an apartment, the buyer is obliged to pay all taxes and fees established by the state, as well as spend money on obtaining a visa, if this is provided for by the rules for crossing the state border.
The tax on the acquisition of real estate is about 2% of the transaction amount (valid provided that the property was purchased on the secondary housing market), agency commission (if an intermediary was involved) - up to 3% of the transaction amount.
Also paid for the services of a notary (a fixed amount or a percentage of the transaction, not exceeding 3%) and the cost of state registration of real estate - 1% of the amount of the contract.
The visa fee is from 35 euros, and the price of plane tickets depends on the point of departure and arrival (from 100 euros).
Purchase of land plots for building
When choosing a land plot, several factors should be taken into account, the main of which are price, area, soil composition, area and purpose. It is quite easy to buy a land plot if you have funds and a special permit from the Ministry of Internal Affairs of Poland.
The land near the sea is very popular, which can be used for individual construction and economic activities. The cost of one hundred square meters can vary significantly and, based on various criteria, range from 1,000 euros to 25,000 euros.
Buying commercial real estate
It is now very profitable to buy an industrial building, shop, restaurant, hotel, corporate office or other real estate in Poland, which will subsequently bring profit from commercial activities.
The investment attractiveness of Poland is steadily growing, and thousands of Ukrainians, Belarusians and Russians are taking advantage of this, who are striving to make a purchase as soon as possible and create a highly profitable business.
There are practically no restrictions on the purchase of shops, restaurants, offices by the authorities, and the cost of such objects is relatively low.
What a potential buyer needs to know
Taking into account the long period of state registration of the purchase and sale transaction, the acquisition of real estate can take from six months to 200 days. Foreigners with the status of an individual have the right to buy apartments, apartments, garages without restrictions - residential and non-residential premises that are not recognized by law as a separate object associated with a land plot.
Any purchase and sale transaction can be executed without the personal presence of the buyer in the presence of a notarized power of attorney, which is issued to a legal or natural person permanently or temporarily residing in Poland.
If the property is bought without intermediaries or the actions of the realtor are in doubt, you should definitely check the availability of the following list of documents:
- extract from the register of land plots;
- extract from the mortgage book;
- permission (if necessary);
- a document certifying the right of ownership;
- contract of sale;
- confirmation that there are no registered people at the property.
You need to remain vigilant and control every stage of the purchase, because a large amount of money and your reputation are at stake. If you have doubts about the legality of receiving documents by the seller or fictitiousness of any of the extracts, be sure to consult with a specialist.
Characteristics of the forms of ownership of real estate
Before signing the contract, pay attention to the form of ownership of the real estate (it can be full, cooperative or partnership property). It is the type of ownership of a 1-room apartment, apartment or a large country house that regulates the rights and obligations of the owner.
- Full (separate) ownership - Pełna własność. The most common option, in which the owner owns the sole right to the residential property, as well as the proportional right to operate common areas, premises and mechanisms (stairs, staircase, elevator).
- The partnership is owned by Towarzystwo Budownictwa Społecznego. Legally and in fact, the buyer can only use the property as a tenant. The partnership retains all ownership rights.Such an apartment cannot be mortgaged or bequeathed. Banks do not issue a mortgage loan for the purchase of a TBS apartment neither in dollars, nor in zlotys, nor in any other currency.
- Cooperative property - Spółdzielcze własnościowe. The object belongs to the cooperative, but the owner has the right to freely dispose of the property at his own discretion: to give, sell, inherit. It is necessary to obtain the consent of the cooperative only in the case of redevelopment or transfer to the category of non-residential objects.
Most common questions
When buying real estate, many questions often arise, the answers to which must be known. This will allow you to conclude a deal without violating the law, quickly and profitably for you.
Can a foreigner get a mortgage in Poland?
A non-resident of Poland is deprived of the right to receive a mortgage loan. However, Polish banks are willing to issue loans to foreign citizens who have been in the country for more than 180 days and have issued a resident card.
The conditions for granting a loan depend on a particular bank and look something like this: interest rate - 5-8% per annum, initial payment - 30% of the value of the property, loan term - 5-35 years, loan currency - Polish zloty or euro. The monthly mortgage payment must not exceed 50% of the applicant's net monthly income.
Do I need a permit from the Ministry of Internal Affairs when buying a garage?
As of 2021, if the garage is outside the border zone, a purchase permit is not required. Since this object has the status of commercial real estate for non-residential purposes, the sale and purchase transaction will take place quickly and without hindrance on the part of the responsible services.
Is it possible to bargain on the secondary market in Poland?
Absolutely all buyers can bargain on the secondary real estate market to get the best price. As practice shows, sellers willingly concede up to 7-8% of the cost of housing a large area, and sometimes they are even ready to compensate for all the buyer's expenses when making a deal.
What kind of visa to apply for a visit to Poland and the subsequent purchase of an apartment?
Most Ukrainians, Russians and Belarusians who are serious about buying real estate in Poland use a tourist Schengen or national visa, which allow traveling in Poland and other EU countries for no more than 90 days every 6 months.
If you intend to buy commercial real estate, you can apply for a business visa. For a "clean" passport, most likely they will open a 30/90 visa, according to which you can stay in Poland for no more than 30 days within 3 months. The maximum validity of a Polish business visa is 180 days of stay throughout the year (90 + 90 days every 6 months). If the buyer is subject to visa-free travel, then a trip to inspect an apartment building or a garage in Poland does not present any problems at all.
Conclusion
Poland is an investment attractive region not only for large international companies, but also for ordinary citizens, since there are no legal restrictions for foreign citizens to purchase apartments, apartments, garages, restaurants, shops and other commercial real estate. In addition, financial institutions are ready to issue mortgage loans to them.
Currently, there are favorable conditions for buying real estate in Warsaw, Krakow, Gdansk, Szczecin and other cities in Poland, where infrastructure is actively developing, jobs are being created, and the quality of education and medicine is improving. Prices in the primary and secondary markets are gradually increasing.
