Information on Purchasing property in Poland and Legal aspects.

Please note. The following information is given as a guide and for information purposes only and is taken from a variety of sources. We recommend you always obtain proper legal and financial advice from reputable and trusted companies in the UK and Poland.

Purchase costs involved with buying a property in Poland are on average 7-8% of the purchase price. These will include such costs as Notary fees, Court fees, land tax of 2 % (like our stamp duty) and the Estate Agents fee, around 3%. It seems that this aspect can be a point for negotiation with the vendor as it's not always as clear cut as say, in the UK where only sellers pay the agents fee. The vendor may have incorporated the agents fees within the asking price. Any agents fees are not paid until final contracts have been completed and signed in the Notaries office. New builds on developments will also attract 7% Vat.

There is talk of the buying fees being standardized by the polish authorities, rather like here in the UK where there are various bands of % based on the purchase price. More experienced established agents will have a better grasp of property values as there is difficulty in obtaining an independent valuation on a polish property.
Please also check here for more info on the purchase of property by foreigners www.mswia.gov.pl/index_eng.php?dzial=20&id=60

Mortgages on Polish property.

It's possible to get a mortgage to purchase a property in Poland if you can show proof of income. As far as we know self certification or non-status mortgages for buying polish property are still not available within Poland or the UK. You will still need to provide proof of income in the form of recent payslips or accounts if self employed.
If you require a mortgage to buy your polish property we can recommend a UK based company that can give you further advice and a quotation. Please use the Contact Form with 'Polish Mortgage' in the subject line for further details.

Legals

Non-Polish nationals from within the EU may purchase an apartment or house in their own name or purchase shares in a company that owns property in poland, but the situation regarding buying Polish land is different. You will need to obtain the permission of the Ministry of Internal Affairs which we are informed is straightforward, who issue you with a permit. This may require you travelling back to sign various papers, unless you give permission for your Agent to act on your behalf.
An alternative is to register a Polish Limited company (Ltd= Sp zoo) and buy it in that companies name.

With regards to Contracts, when you agree the price on a polish property you need to enter into a legally binding pre-agreement at the offices of a notary and pay a deposit of 10%. A final date for completion for the polish property transaction is also agreed upon. The time between the two is up to twelve weeks, but cash buyers may find it takes less time than this. The notary should meantime check property titles and ownership and final contracts are signed at the offices of the notary, where you also make final payment. After this the notary will arrange for the transfer of ownership. The buyers copy of the contract is like our Deeds in the UK.

Surveys and home buyer reports on Polish property are rarely done by most Polish buyers, but we are informed that you can get a LIcensed polish builder to produce a short summary in writing for around £50 (translation may add to this cost).

Additional Notes on buying Polish property.

If you sell a Polish property within 5 years of buying it you will have to pay a tax of 10% of the net profit, after this period the gains are free of any tax. There is a double taxation treaty with the UK so you should only pay any tax due once.

When arranging for the utilities to be paid or set up/connected this can be done by setting up direct debits, but only once you have registered your details with each respective utilities provider.

When buying any polish property its well worth having checks made as to who owned the property. Properties may have been confiscated by the post war communist regime that took power in poland. Any title disputes and claims to ownership are points to check on, a good (english speaking) polish lawyer (adwokat) or notary (notariusz) can advise you of any risks that might apply to your own particular purchase and make the necessary checks on ownership and title.