How a foreigner can buy real estate in Poland: features and tips

Acquisition of real estate by foreigners in Poland

This article discusses the question of what real estateforeign citizens can purchase in Poland. Can buying an apartment become accessible for residents of post-Soviet countries? We will discuss the key stages of the purchasing process, as well as possible taxes and additional costs that one might encounter. It is also worth noting the specifics of transactions in the primary market, as well as the possibility of obtaining a mortgage and residence permit through real estate purchase.

Legal aspects of purchasing real estate

Foreigners have the opportunity to become owners of residential real estate in Poland if they have a valid passport and sufficient financial resources. However, it should be noted that for certain types of properties, such as commercial buildings or land plots, a special permit from the Ministry of Internal Affairs is required.

• Such facilities may include:
• commercial spaces,
• plots of land,
• private houses located on owned land.

In some situations, the form of ownership can affect the status of the property; for example, a townhouse may include part of the roadway, which can be interpreted as having ownership."ties to the earth.".

Conditions for purchasing real estate

Is it possible to conduct transactions under such conditions? Usually — yes, but you will need to confirm your..."connection to Poland"There is no clear definition in the legislation of what can serve as evidence of such a connection.

Foreign buyers most often cite their Polish roots as an argument. If a foreigner has an official residence permit, this will also be a strong point. An alternative option could be having a registered business in the country, which implies paying taxes in Poland.

The process of obtaining a permit

It is important to note that the process of obtaining permission can take a long time, ranging from two to four months, and sometimes even longer—up to a year. During this time, the seller is also waiting for the process to be completed, so they may be left in the dark, having received a deposit from the buyer.

In reality, many owners of non-residential properties may not be willing to wait that long, as the real estate market in Poland is characterized by high activity. It is easier for them to find buyers among local citizens rather than spend time on a foreigner with the risk of rejection from the Ministry of Internal Affairs.

Alternative purchase options

The simplest option is to look for housing that can be purchased without additional permits. However, for those who are focused on buying properties with...“connection with the earth”There are other ways.

• One of them is registering a company in Poland and acquiring real estate in its name. This approach offers a number of advantages, both in terms of taxation and convenience.
• Then, in calmer times, there is an opportunity:
• re-register the property to an individual
• or leave it on the company's balance.

Conclusion

Thus, the process of acquiring real estate in Poland for foreigners can be multi-stage and require careful study of the nuances related to the necessary permits and waiting for decisions from government authorities. However, with the right approach and legal support, many of the arising issues can be successfully resolved, opening new horizons for personal housing or investments in the Polish economy.

Introduction

The question of the possibility of purchasing real estate in Poland for citizens of former Soviet republics remains quite important. Currently, Polish legislation does not impose any restrictions on the purchase of residential properties for citizens of Russia, Belarus, Ukraine, Kazakhstan, and other countries that were part of the Soviet Union.

Step One: Opening an account

In order to successfully make a purchase, a potential buyer must first open an account in one of the Polish banks and deposit the necessary amount for the transaction. Despite potential difficulties with money transfers for Russians and Belarusians, these can be overcome with the help of various banking services.

Planning the acquisition process

The process of acquiring real estate in Poland begins with setting clear goals and choosing the location where the property will be situated. As in any other country, the success of transactions is directly related to preliminary market research. For example, tools for immigration and investment can vary significantly.

If the purchase of an apartment is intended for subsequent rental, it is advisable to consult an experienced realtor who can offer properties with high liquidity that are capable of generating stable income.

Market choice: primary vs. secondary

It is also necessary to decide whether you want to purchase an apartment on the primary or secondary market. It is worth noting that when buying secondary apartments, the buyer will have to pay a property transaction tax, which is 2% of the price. However, this tax will not be charged if the property is used as the primary residence.

Conclusion of a contract with a realtor

One of the key steps is to sign a contract with a realtor. The real estate market in Poland is very developed, and most agents prefer to work based on an official agreement. Typically, realtor commissions range from 2% to 5% of the final transaction value, and these fees are most often paid by the buyer.

Professional realtors provide a full range of services:

• Real estate selection
• Verification of legal status
• Legal support at all stages of the transaction
• Interaction with notaries
• Ensuring the security of transactions and the transfer of the apartment to the buyer.
• After-sales service

Searching for suitable options

When a client expresses their requirements, the realtor begins to select possible options based on the buyer's requests. All serious licensed agencies in Poland are part of multiple listing systems, which provides buyers access to information from all brokers operating in the country and saves a lot of time in the search process.

Checking realtors

It is important to note that licensing for realtors in Poland is not mandatory; however, many professionals prefer to maintain high standards, which often includes obtaining licenses after passing challenging exams.

Verification of the legal status of the object

The next important step is to verify the proposed property, which includes a detailed analysis of the legal status of the apartment. In the case of exclusive offers from the agency, this stage can be significantly simplified, as all the necessary information about the legal status of the property is usually gathered in advance.

Signing the reservation agreement

Next, a preliminary reservation agreement will be signed, which outlines the key terms of the future transaction between the buyer and the seller, including the price and the timeline for the deal. At this point, the client is required to make a deposit, which typically ranges from 5 to 10% of the total cost.

Completion of the purchase process

When all the documents are prepared, the date for signing the notarial deed is set, which leads to the official transfer of ownership of the apartment. This moment completes the process of acquiring real estate in Poland, opening new horizons of life for its new owner in this country.

Key stage of real estate acquisition

A key moment in the process of acquiring property is the signing of the notarial deed, which essentially serves as the sales contract. All parties involved in the transaction must sign this document: the seller, the buyer, the notary, and, if the buyer does not speak Polish, a notarial translator. The notarial deed serves as the primary proof of ownership, with the original document stored in the notary's archive. Each party to the transaction receives notarized copies, which can be requested in unlimited quantities.

Registration of a notarial act

This notarial document must be registered in the state property register, which is maintained by the court in Poland. The registration process involves entering information into a special electronic database, where data is recorded about:

• encumbrances;
• owners;
• grounds for acquisition or alienation.

It's interesting that the registry is available for public viewing, and by the KW number (perpetual use book) of the apartment, you can find out all the necessary information.

Methods of settlements when buying real estate

It is recommended to use when calculating for real estate.Polish zlotysPayments are made from the buyer's account to the seller's account, as cash transactions are not very common in the country. Usually, at the initial stage of the transaction, a foreign buyer needs to open a bank account, which is often done with the help of a realtor. The necessary amount is then transferred to this account. The bank may have questions about the origin of these funds, and the buyer should be prepared to provide supporting documents translated into Polish.

Procedure for transferring funds

After the notarial deed is signed, the process of money transfer takes place. The deed, as a rule, specifies the period within which the buyer must make full payment for the property. For example, this term can be set at one day, and if the funds do not arrive on the seller's account within the specified period, the transaction will be considered invalid.

Remote transactions through agencies

In agencies that work with foreign clients, it is common to organize partially or fully remote transactions. All stages, except for signing the notarial deed, can be successfully completed remotely. Most often, the buyer only comes for the final signature on the notarial document. However, in some cases, it is possible to do without physical presence by providing a power of attorney to a representative of the agency.

Transfer of ownership

The final stage, in which the transfer of property rights takes place, can be the most challenging for foreigners. It requires compliance with all formalities and the presence of necessary documents. Successfully completing the entire procedure demands careful preparation and an understanding of all the nuances, which can pose difficulties for those encountering this situation for the first time. Therefore, the support of qualified professionals, such as realtors and lawyers, can significantly ease the process of acquiring real estate and eliminate potential mistakes.

In order to make the housing in Poland comfortable and satisfying, it is crucial to update the contracts for gas, electricity and other utilities. In addition, setting up personal accounts to control expenses and connecting to the internet becomes an equally important step. Foreigners often face problems when it comes to paying for utilities, which can delay the process for up to several months, especially when there is a lack of information about available payment methods. This is why reliable agencies working with foreign clients set up special services to follow up and simplify the process for new owners.

The owner also needs to gather and submit a number of documents to the local authorities, which are required for calculating the annual land tax. Every year, owners receive a notification by mail demanding payment of this tax, making it essential to respond to this notification in a timely manner.

Tax obligations of buyers

As for taxes, all buyers in the secondary market in Poland, both local citizens and foreigners, are required to pay a tax of2%From the cost of the purchased property. However, starting from September 2023, tax benefits have been introduced for those buying a home for the first time, allowing them to avoid paying this mandatory fee. This measure is aimed at helping young people and families who are just beginning their journey as homeowners. Interestingly, the legislation does not specify whether apartments or houses purchased abroad will be considered under this tax benefit.

Bankruptcy situation in the construction industry

In Poland, cases of bankruptcy among construction companies are quite rare.

The payment process for shared participation agreements

When making payments under shared participation agreements (DDA), a phased payment system is used. Typically, the total cost of the project is divided into several parts, which are paid quarterly. When the construction project is completed and ready for operation, the developer notifies their client and invites them to accept the apartment.

Apartment acceptance

At this stage, the buyer has the opportunity to check whether the property matches the project documentation and to identify any possible defects, such as cracks or other damages. If the quality of the apartment meets his requirements, he signs the acceptance act. Otherwise, a document listing all the deficiencies is drawn up, and the developer is given a month to address them.

Registration of property rights

After some time, when the building is officially put into operation, the developer organizes a meeting at the notary's office to sign documents confirming the transfer of ownership of the purchased apartment. From this moment on, the process of arranging contracts for utilities, connecting to the internet, and other necessary procedures begins.

Mortgage lending for foreigners

When it comes to mortgage lending for foreigners in Poland, citizens of other countries with temporary or permanent residence permits are entitled to apply for a mortgage, provided they meet certain conditions:

• Validity period of the permitIt is important that the validity of the temporary or permanent residence permit remains at least one year.
• Creditworthiness of the borrowerOnly income earned legally in Poland is taken into account.
• Entrepreneurial activityIt is necessary to provide annual reports, and some banks may require data for two years.

Mortgage application assessment

When evaluating a mortgage, banks consider the stability of the borrower's income and the number of dependents. These factors can significantly affect the maximum loan amount that the bank is willing to offer.

Mortgage consultants

In Poland, there is an intermediary structure between borrowers and banks — mortgage consultants. These professionals hold financial licenses and are knowledgeable about all current bank offers. Their task is as follows:

• Help borrowers assess their chances of getting a loan.
• Suggest several of the most suitable options from different financial institutions.

The process of registration

Next, the client chooses the most attractive offer and contacts the real estateagency. The realtor, taking into account the previously determined amount of the mortgage loan, helps to find the desired property. Then, the collection of all necessary documents for both the apartment and the borrower begins. With the gathered documentation, the borrower proceeds to the bank.

Interaction with the bank

In most cases, a mortgage consultant and a realtor interact with each other, which helps speed up the loan processing and makes it more convenient for the client. The time required to review a mortgage application at the bank can take up to four months, depending on various factors and circumstances.

At the beginning of the mortgage loan process, a bank specialist conducts a detailed assessment of the client's financial situation, considering them as a potential borrower. Next, they shift their focus to the property itself that will be purchased. Finally, the overall situation is analyzed. It is worth noting that mortgage denials occur relatively rarely, which can be attributed to the fact that mortgage consultants effectively prepare their clients, helping them come to the financial institution as ready as possible. It is important to emphasize that the costs for these consultants' services are borne not by the client, but by the bank.

Purchase of real estate and residence permit

When it comes to the possibility of obtaining a residence permit in Poland through the purchase of real estate, the answer is clear — it is not possible. Owning residential property does not grant the right to obtain a residence permit or permanent residency. The only option for a foreigner to acquire property is to have a long-term visa that allows them to stay in the country and take care of their apartment.

Alternative paths to residency in Poland

There are many alternative ways to become a resident of Poland, among them:

• Obtaining an education;
• Employment;
• Opening your own business.

Each region has its specific characteristics, and ignorance of the laws can lead to significant financial losses and a waste of precious time. Often, foreigners overestimate their capabilities, while locals typically consult several lawyers before making serious decisions, as they are more familiar with the legal nuances of their country.

Stories of client hardship

Real estate agencies share stories about two cases where clients faced serious difficulties.

First case

In the first case, a foreigner with a previously obtained residence permit decided to apply for a mortgage to buy an apartment. He directly contacted the developer and chose the property he needed. After signing the contract, he made a down payment of 20%. However, when he tried to obtain a mortgage loan, the banks denied him, citing their financial criteria. As a result, he lost his money, as the contract he signed stated that the deposit was non-refundable. Moreover, the credit specialist had warned him in advance about his low creditworthiness and suggested ways to improve it. If he had consulted a realtor at the very beginning, the situation could have developed quite differently.

The second case

In the second case, a similar problem arose with a foreign client. He chose both an apartment and a parking space, contacting the developer and fully paying for both transactions. It is likely that the developer lacked the necessary experience in working with foreign buyers and processed the documents according to standard rules. However, when it came time to sign the property transfer documents, the notary refused to certify the transaction, creating serious obstacles for the buyer. This case highlights how important it is to carefully check all the details of the transaction and the necessity of involving real estate professionals to assist in such processes. Qualified experts can help avoid many problems and financial losses associated with purchasing property abroad.

Conclusion

In concluding our detailed overview of the real estate purchasing process in Poland for foreign citizens, it is important to summarize and highlight the key aspects that can assist potential buyers in their journey.

Opportunities for foreign citizens

Firstly, the opportunity for foreigners to purchase real estate in Poland opens up wide horizons for those seeking stability and the experience of living in Europe. However, as we have found out, there are certain nuances and strict rules regarding the properties that are involved.“connection to the earth”. Such restrictions may become an obstacle if the foreigner prefers more specific types of real estate, such as land plots or commercial premises. In such cases, authorization from the Ministry of Interior is required, which can take considerable time and complicate the process.

The absence of strict restrictions for citizens of post-Soviet countries

Secondly, for citizens of post-Soviet countries – Ukraine, Belarus, Russia, and others – there are no strict restrictions on purchasing. Opening a bank account and arranging money transfers are steps that, although they may present some challenges, can be managed quite well. The real estate market in Poland offers numerous opportunities for both living and investment, making it attractive for people looking to improve their financial situation or start a business.

Stages of purchasing real estate

The process of buying property in Poland involves several stages, including:

• object selection;
• conclusion of a contract with a realtor;
• reservation agreement.

The role of a professional realtor here cannot be overstated – they not only simplify the selection process but also ensure the legal integrity of transactions, which is especially important when investing large sums. By trusting an experienced agent, buyers can avoid many pitfalls that may arise during the transaction process.

Result

In conclusion, I want to emphasize that by thoroughly studying the market, seeking help from qualified professionals, and understanding the legal aspects, foreigners can successfully purchase real estate in Poland. It is important to remember that this is not just an investment in property, but also an entry into a new culture and way of life, which may seem unprofitable at first glance. With the right knowledge and preparation, buying real estate in this country can become one of the most significant and profitable decisions in life.