If you are looking to buy property in another country, at times it could be exhilarating but also frightening. With its affordability, intriguing history, and rich culture, Poland has become one of the most desired counties for foreign investors wishing to make purchases in real estate. If you are planning to move to Poland or are generally interested in the Polish real estate market, you are probably wondering how to buy a 3 bedroom house for sale as a foreigner in Poland by step – so a guide to buying a house in Poland for foreigners.
In this episode, we will explore everything from the legalities and the property hunt, to financing and taxes. Let’s dive in!
Foreigners Purchasing Real Estate in Poland — Legal Aspects
But before starting your search for the perfect property, it’s important to understand the legal requirements for foreign buyers in Poland. The rules of the Polish legal system explicitly note the process of purchasing real estate, especially for citizens of foreign countries.
Permit Requirements
If you’re not from the European Economic Area (EEA) or Switzerland, you will likely require a special permit to purchase Polish property. It is issued by the Ministry of Internal Affairs and Administration and is necessary for purchasing real estate (that is, land, in particular).
Required documents for this permit:
- A valid ID or passport.
- All documents proving your legal connection to Poland (e.g. residency permit, business activity, family ties).
- Details of the property you would like to buy.
Also worth mentioning is that this process can take several months, so be prepared if you’re looking to buy property in a speedy manner.
Exceptions for EEA Citizens
As EEA/Swiss citizen, you require no permit to buy property in Poland. However, agricultural land or wooded land has certain restrictions. The process is not complicated for most residential properties, such as a 3 bedroom house.
Find Your Dream House 3 Bedroom in Poland
Finding the right house is possibly the most exciting part of the process. There is a range of options in Poland, but city apartments vs. country houses. Here’s how to get started in your search.
The role of real estate agents and website tools
A good start for your search is to enlist a real estate agent. Also, agents speak your local language and understand the local market and legal requirements. This is when the foreigners obtain a smoother processing.
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There are also many real estate sites aimed at foreign purchasers. Popular platforms include:
- Otodom (https://www.otodom.pl)
- Gratka (https://gratka.pl)
- Morizon (https://www.morizon.pl)
By filtering on these platforms, you can sort the options based on factors such as size, location, and price, assisting you in finding the perfect 3 bedroom house for sale in Poland.
Viewing Properties
When you have a few shortlisted, schedule property viewings. To make the most of your visits, here are some tips:
- If you don’t speak Polish fluently, bring a translator or hire a bilingual real estate agent.
- Make sure you thoroughly examine the property for any damage or needed repairs.
- Inquire about the neighborhood, nearby amenities and public transportation links.
Keep in mind that an in-person tour will allow you to better gauge the house’s condition and surroundings.
How to Buy a House in Poland: Step-by-Step Guide
In Poland, the purchase process is quite structured and consists of the following main steps. Let’s break it down.
Preliminary Contract
The initial paperwork involves a preliminary contract (Umowa przedwstępna) signed with the seller. The agreement states the specifics of the sale, such as the property price, payment details, and timeframes for closing the deal, etc.
You’d usually be paying a deposit, typically 10% of the property’s value, at this stage. This deposit acts as a hold on the property and shows that you are serious about buying the home.
If your destination is one that requires a permit
As we told you at the beginning of the article, non-EEA citizens might be required to obtain a permit in order to purchase property. In this case, apply to the Ministry of Internal Affairs and Administration. Expect a wait of months or more.
Final Purchase Agreement
If you need a permit for your purchase, after [it] is approved, you sign the final purchase agreement. Traditionally, this contract is signed in the presence of a notary, who makes the transaction legally binding. The notary will:
- Check the ownership and legal status of the property.
- Zarejestrować transzcję w polskim rejestrze ziemi i hipotecznym.
At this point, you’ll pay the rest of the purchase price for the home.
Buying Options for Foreign Buyers
If you’re not buying the property outright, it’s important to understand mortgage options, or alternative financing solutions.
Non-Resident Borrowers: Mortgage Options for You
Foreigners can get mortgages in Poland but the process changes according to residency status. Polish banks generally expect:
- Stable income (e.g., employment contract, business income).
- If you’re a non-EEA citizen: a valid residency permit
- A good credit history.
The some well-known Polish banks that can provide a mortgage for a foreigner:
- PKO Bank Polski
- Santander Bank Polska
- ING Bank Śląski
Alternative Financing Methods
If you’re not able to get a mortgage, here are some alternatives:
Save Up / Buy Outright: This eliminates the headaches involved in a mortgage application, but there is a need for a pot of capital seated upfront.
They do this through private commercial loans with banks for friends and family.
Learn about the taxes and fees in Poland
If you are buying a property, it is important to familiarize yourself with the taxes and fees involved in order to avoid surprises.
Transaction Taxes
Buyers in Poland are liable to some transaction taxes, such as:
- Notary Fees: Usually between 0.5% and 3% of the property value
- Civil Law Transaction Tax (PCC): New for resale properties, at 2% of the property value.
- VAT: Applicable for new properties, typically 8% or 23%
Annual Property Taxes
Once you’re a property owner, you will need to pay annual property tax. Compared to other countries, these rates are low in Poland and differ according to property size and location. For instance:FIGURE 1 | Type of Property | Annual Tax Rate (Approx.) |————————|—————————| Residential | 0.50 – 0.80 PLN | Agricultural | 0.20 – 0.30 PLN |
When budgeting for your purchase, bear these costs in mind.
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