Against the background of economic growth, land in Poland is becoming an increasingly attractive investment instrument. The demand for land plots is growing every year, which is correspondingly reflected in their price - the annual growth rate reaches 3-5%, adjusted for the region. Among the active investors are citizens of Russia, Ukraine, Belarus and other countries that have a common border with Poland. For them, the legislation of the Republic of Poland stipulates some nuances when buying land, on which we propose to dwell in more detail. However, let's start with the benefits.
Why should you buy land in Poland
The demand for Polish real estate, in particular for land plots, has grown significantly in the middle of the 2000s after the Republic of Poland entered the European Union and the Schengen zone. The country's economy has noticeably added since then, which significantly affected the cost of real estate: in the resort area, prices have increased by 50-70% over the past 10 years, and agricultural land in some areas has generally added 200% in price. Moreover, their annual growth in price is 10-15%.
It is also interesting that the representatives of the CIS are showing the greatest interest in the Polish lands. For example, in 2021, foreigners collectively bought almost 460 hectares of land in Poland, and most of the land was acquired by Ukrainians, Belarusians, Germans and Russians, showing an interest in plots not only for residential, but also for commercial development.
Since 2021, foreigners have received more opportunities: 01.05. 2021 expired a moratorium on the sale of agricultural land to citizens of other states.
The lifting of the moratorium attracted investors from outside the country, as a result of which the volume of land acquired by them in 2021 increased to 3,200 hectares.
Obviously, the attractiveness of land plots in Poland is increasing from year to year, and taking into account the growing demand, land is becoming one of the most profitable investment instruments. In addition, investors highlight a number of obvious advantages of buying land in the Republic of Poland, namely:
- loyalty to non-residents - having fulfilled all the conditions stipulated by the law, foreigners can freely acquire land plots in unlimited volumes;
- relatively low prices in comparison with the cost of allotments in other European countries and even large cities of the CIS;
- high investment attractiveness: the increasing demand for land raises its price, which allows not only to save the invested funds, but also to increase them only by increasing the price;
- the opportunity to open your own business in Poland;
- the possibility of acquiring land assets for various purposes, including for agriculture and even forest land.
How to find a land plot to buy
Given the high demand for Polish land, it is not so easy for foreigners to find a vacant plot to buy. To find a suitable object, it is important to use all possible channels, of which there are not so many.
The most convenient way to find and buy land in Poland is through:
- broker, private realtor or local real estate agency;
- developer - especially relevant in the case of acquiring a land plot with a residential building;
- Internet portals, newspaper ads from owners and intermediaries;
- auctions for the forced sale of pledged property.
Since each of the listed search channels has its own characteristics, we propose to consider each of them in more detail.
Contacting a realtor
Of course, the easiest way to buy real estate in Poland is to contact intermediaries: brokers and realtors. These are people who know everything about real estate, methods of searching for it and the rules of registration. Most of them work officially, which will protect a potential buyer from possible fraud.
Such intermediaries will not only assist in finding the necessary object, but will also help to register a land plot in Poland as property.
The advantage of cooperation with real estate agencies is that they can not only offer the maximum of options, but also require a minimum of participation in the negotiation process from the side of the buyer.
It should be noted that agencies usually organize their work on a territorial basis, that is, they operate within a specific settlement.
For example, here you will find a list of Warsaw agencies, and here you will find the best brokers in Gdańsk. We recommend that you use the services of only licensed intermediaries, whose contacts can be found on the website of the Federation of the Real Estate Market. Remember that most agencies have a commission of 1.5-3%.
Contacting the developer
When it comes to acquiring land for residential or commercial development, it makes sense to contact developers. Development companies often sell land plots that have already been prepared for construction - as a rule, they have all the necessary communications and developed infrastructure. In addition, developers provide all permits.
Given this, it is important to be aware that such a land plot will cost significantly more than an unprepared one. Please note that the developer can sell not only the land plot prepared for construction, but also the land with an already built house.
I must say that offers on the primary market are very attractive until it comes to the announcement of the cost. Usually, the purchase of a new building costs 30-35% more than the purchase of a plot and independent construction of housing. Therefore, this search option cannot be called budget - it is suitable only for those who need a house without unnecessary hassle, and those who are willing to overpay.
Internet, newspapers
Perhaps the most convenient way to find land to buy is to search for it on the Internet. Users are offered hundreds of convenient online resources containing tens of thousands of proposals with real photos and locations across the country. Convenient filters allow you to sort offers not only by settlement, but also by purpose, type of land plots and their value.
Just a few clicks - and the buyer has the seller's contacts, which will allow him to get maximum information over the phone. The most popular internet portals are OLX, Otodom, Allegro, Domiporta, Znajdzto and many others. It should be borne in mind that such portals contain ads not only from owners, but also from intermediaries.
Real estate ads can also be found in print publications - newspapers and ad magazines. However, they mainly contain announcements concerning only those localities in which they are issued and distributed. Therefore, such sources should be used only if you are physically located in a certain region of Poland, in which you plan to acquire land.
Compulsory sales auctions
Another very specific, but at the same time very attractive option for searching for real estate in the Republic of Poland, including land plots, is participation in auctions for the compulsory sale of property. We are talking about the arrested land plots, which are confiscated from the owners and are sold to pay off their civil debts. Such auctions are conducted by bailiffs.
By participating in a forced sale auction, you can save a lot by buying land 30-50% cheaper than market value.
Information on such auctions can be found on the website of the National Council of Bailiffs. By clicking on the link, you will find a list of auctions with the date and place of their holding, as well as the cost of land and a photo of the object being sold.
In the "Więcej" tab, the user will find more detailed information about the object, venue and conditions of participation in the auction, all the necessary contacts and other information.
Information about auctions can also be found on the websites of credit organizations. For example, here you will find information from Bank Zachodni WBK. We are talking about the sale of pledged land plots that secured large loans.
How much is land in Poland
It is impossible to unequivocally answer the question of how much land in the Republic of Poland costs - the specific price of a particular site depends on many factors: the purpose of the site, its location, the size of the communications located on it, the costs of registration, the wishes of the seller. Therefore, in this context, it is logical to consider average prices, which differ significantly depending on the region and even within it.
To begin with, consider the average prices for building land.
According to the Bankier portal, in February 2021, in most voivodeships, the average price of building plots increased by 30% compared to February 2021.
The undisputed leader is undoubtedly Warsaw - the average price in the capital is 779 zł / m2 or 183 euros, which is an absolute national record. Compared to January, the price has increased by almost 180 zł!
However, such an increase had a slight effect on prices in the Mazovian Voivodeship as a whole, where the average cost is 185 zł / m2. Plots in the Pomeranian Voivodeship have the second national average price - 163 zł / m2, while land plots near the Baltic Sea, in particular in Gdansk, are valued at 417 zł / m2.
More expensive than in Gdansk (apart from the capital), land only in Poznan (525 zł / m2) and Krakow (450 zł / m2), however, the Wielkopolska (107 zł / m2) and Lesser Poland (110 zł / m2) voivodeships are still inferior to the coast at the average price of building land.
The lowest prices for building land can be found in the Lubuskie Voivodeship - in the region the average price barely reaches 49 zł / m2, while in the largest city in the Gorzow Wielkopolskie region the average price of land is only 73 zł / m2. Similar low land prices are also observed in the Podkarpackie and Warmia-Mazury Voivodeships - 62 and 61 zł / m2, respectively.
The average price for agricultural land also differs significantly from region to region, although it is not tied to business activity and level of economic development. And although the logic of pricing is different, the most expensive and cheapest regions are practically the same voivodeships.
So, according to information published by the Agency for Restructuring and Modernization of Agriculture (Agencji Restrukturyzacji i Modernizacji Rolnictwa), in Poland at the end of 2021, the highest prices for agricultural land were in the Wielkopolskie and Kuyavian-Pomeranian Voivodeships - 58.9 thousand and 57.4 thousand zł / ha, respectively. The lowest prices for agricultural land were in the Pomorskie and Podkarpackie Voivodeships - 28.6 thousand and 25.1 thousand zł / ha, respectively.
The average price in the country is 42.4 thousand zł / ha, which is more than 2 thousand zł more than in the same period last year - that is, agricultural land is also growing in value. But it should be borne in mind that the cost of agricultural land depends on the class assigned to the site, of which there are only six. For example, the average price for plots of I-III class in the Wielkopolska Voivodeship is 74.2 thousand zł / ha, while land of V-VI class costs only 42.3 thousand zł / ha.
In addition, the buyer of the site will have to incur additional costs associated with the registration of real estate in ownership. These are notarial expenses in the amount of 2-3% of the cost plus expenses for representatives and intermediaries - up to 5% of the cost of the object. Don't forget about taxes, which we will discuss below.
Land Purchase Permit
Polish law does not require any special legal status from foreigners wishing to buy real estate - at the time of purchase, it is enough just to have a valid visa to stay legally in the country. However, in accordance with Article 1 of the Ustawa o nabywaniu nieruchomości przez cudzoziemców (Law on the Acquisition of Real Estate by Foreigners), citizens of other countries will need a special permit to purchase land, which is administratively issued by the Minister of the Interior at the request of the buyer.
The right to purchase real estate is granted provided that:
- such a deal does not threaten the state security, defense and public order of Poland;
- the foreign buyer will prove their connection with Poland.
So, if the absence of threats to the state security of the Republic of Poland is quite easy to prove, due to the absence of objections from the Minister of Defense (and in the case of agricultural land - from the Minister for Rural Development), then it is not so simple with the connection with Poland.
In particular, in accordance with paragraph 2 of article 1a of the law, the connection with Poland may be evidenced by:
- Polish nationality or Polish roots;
- marriage with a Pole / Polish woman;
- availability of a temporary residence permit (temporary residence permit) or permanent residence (permanent residence permit);
- membership in the management bodies of an enterprise registered in Poland;
- carrying out economic or agricultural activities on the territory of the Republic of Poland.
Without such a connection or actually moving to Poland, it is impossible to obtain permission to purchase land, but a purchase without such permission, according to article 6 of the law, is invalid.
To obtain a document, you must draw up an application, which, in accordance with paragraph 3 of article 1a of the law, must contain:
- applicant's personal data;
- data on the land plot (address, cadastral and registration numbers, area, construction characteristics);
- seller's personal data;
- determination of legal events that will arise subsequently (sale of real estate);
- the purposes that the foreign buyer is guided by when making the transaction;
- sources of funds that will be spent on the purchase of real estate.
The following documents must be attached to the application:
- a copy of your passport, residence permit or other identity document;
- a document confirming ties with Poland;
- documents for real estate (extract from the land register, extract from the land register with an indication of the cadastral map, certificate of the purpose of land use, etc.);
- a statement from the seller wishing to sell the property;
- a document confirming the availability of funds (certificate from the bank);
- documents confirming the payment of stamp duty in the amount of 1570 zł.
An application for a permit is submitted to the Department of Decisions and Concessions of the Ministry of Internal Affairs (Departamencie Zezwoleń i Koncesji) located at the address: Warsaw, st. Rakovetskaya, 2a, or sent by mail to the address: Stefan Batory, 5 (index 02591).
It should be noted that the provisions of article 8 of the law provide for the conditions under which the above permission for the purchase of land is not required:
- if the foreigner has lived in Poland for permanent residence (permanent residence permit, zezwolenie na pobyt stały) for more than 5 years;
- if a foreigner has been married to a Pole for more than 2 years from the date of obtaining a permanent residence permit;
- if a foreigner has citizenship or carries out economic activity in one of the countries of the European Economic Area.
What to look for when buying land
It is necessary to approach the choice of a land plot seriously, otherwise it is very easy to become a victim of deception. We have highlighted several aspects that you need to pay attention to when buying land in the first place. In particular, these are:
- Purpose of the land plot. Agricultural land is usually called Ziemia or Grunty Rolne, while building land is działki budowlane. Naturally, the land can be used exclusively for its intended purpose.
- The presence of communications on the site. If we are talking about land for construction, you should look for a plot with sewage, water supply and electricity connected to it - this will be evidenced by the phrase in the ad “działka uzbrojona w prąd i kanalizę” or “grunt uzbrojony w media”.Self-laying communications will not only be extremely expensive, but also take a lot of time.
- Location of the site. The closer the developed infrastructure and the availability of public transport stops to it, the higher its investment attractiveness. Plus the presence of a local spatial development plan (Miejscowy plan zagospodarowania przestrzennego), adopted by the community, - this will allow you to find out about what will be around in the coming years.
- Legal status of real estate. It is necessary to check the seller's ownership of the land and the absence of claims to the site, which is done by a regular request to the department of land and mortgage registries in the district court.
- Site characteristics. We are talking, in particular, about the type of soil, area, availability of groundwater, location to the main geographical directions.
What taxes will you have to pay when buying
By and large, the only tax that a buyer will have to pay when purchasing land is a tax on civil transactions in the amount of 2% of the transaction value. Plus notary fees and VAT on notary fees. Plus, if the seller is a legal entity and a VAT payer, another 23% VAT, which is usually included in the price. To this list it is worth adding the payment of the court fee for maintaining the land and mortgage register - 60 zł, plus another 200 zł for entering information into these registers.
Common questions
Of course, this is only general, but far from exhaustive information that we managed to collect on the acquisition of land in Poland. However, if readers still have questions, it is quite possible that they will find answers to them in this section.
Is it possible to count on obtaining a residence permit after purchasing land
The acquisition of a land plot, as well as any other real estate, regardless of the amount, the grounds for its acquisition or the purpose of the land, does not entail the right to receive a temporary or permanent residence permit, as well as to extend them.
When a permit for land acquisition may be refused
The law does not provide for a specific list of grounds on which a foreigner may be denied the right to acquire a land plot. However, the established practice indicates that such a refusal may follow in the following cases:
- if the sale and purchase transaction would threaten the national security of Poland or public order;
- if the buyer has not proven his connection with the RP;
- if forged documents are presented, false information is indicated, etc.
Moreover, there is no mechanism for challenging the minister's decision.
Is it possible to buy land in the border area
Yes, the law does not prohibit foreigners from acquiring land in border areas. However, in accordance with paragraph 3 of Article 8 of the above-mentioned law, to conclude such a transaction, the permission of the Minister of Internal Affairs will definitely be required, even if a foreigner generally fell under the exception and could acquire land without permission (for example, 5 years of residence permit or 2 years of marriage with the Pole).
Finally
All of the above rules and prices shown are valid as of 2021. However, given the rapidly growing demand and prices for land, representatives of the legislative branch of the Republic of Poland are increasingly discussing the tightening of the procedure for acquiring land by foreign latifundists. Therefore, it cannot be ruled out that the current order will soon be changed. Today, the acquisition of a land plot in Poland for a foreign investor is not a difficulty - the problem may be the lack of land plots at an attractive price.
