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Purchase of Property in Poland

2020-06-01

What is the legal status a foreign national must possess in order to buy property in Poland?

What is the legal status a foreign national must possess in order to buy property in Poland?

There is no legal status requirement a foreigner must meet in order to buy a “stand-alone residential premises”, or an apartment in Poland. This means that a foreigner who has a Polish visa, temporary residence permit, permanent residence permit or residence permit for EU long-term residents does not need authorisation to buy an apartment. No permission is also required for a foreigner who does not reside in Poland, but still wants to buy an apartment on the Polish territory.

However, if a foreigner wants to purchase a house, he or she must obtain authorization of the Minister of Internal Affairs. Such official permission is not required for persons who have lived in Poland for at least five years from the issuance of the permit to settle or residence permit for EU long-term residents. An person who is married to a Polish citizen and has lived in Poland for at least 2 years after being issued a permit to settle or EU long-term resident permit, and who wants to purchase a house that will form a part of the community property of the spouses is also released from the obligation to obtain authorisation of the Minister of Internal Affairs.

Can a foreigner obtain the right to reside in Poland if he or she purchases property for a sum exceeding certain value?

In general, it is not possible. Foreigners may apply for a temporary residence card if they prove that there are other (than those specified in the Act) important circumstances justifying their application for a permit, and that these circumstances warrant the person's need to reside on the Polish territory for a period longer than 3 months. Accordingly, the application for a temporary permit can be explained by the fact that a person owns a property in Poland, lives in Poland and has tied their life with this country. Please note that the voivodship office can always demand presentation of additional documents proving the close ties with Poland. The final decision on permit issuance is made by the voivode, who assesses whether the ownership of real estate by a foreigner is a sufficient basis to grant him or her a residence permit.

How Long does it take to get a Permit?
The law requires that the Ministry of Internal Affairs and Administration makes a decision on an application for a permit within two months

Associated Costs
Please note the costs below are approximate and will vary depending on the exchange rate and the area in which you buy or the solicitor/agent that you use. You can also use the online Buying Costs Calculator to give you an idea of costs for a particular property or purchase price.

Agency Fees are charged to both the seller and the buyer. As a buyer you will usually pay about 3 percent of the purchase price (+22% VAT)
Solicitor Fees - 1 percent on transactions over 12 000 euros. You will also need to pay VAT (22 percent) on these fees.
Taxes - 2 percent of the sale price
Court Fee - for registering the property in your name, approx 150 euros.
Resale Tax -  there is a 10 percent tax on a property that is resold within five years unless the proceeds are invested in another Polish property

Buying to Let
The landlord is expected to pay for common costs (maintenance, security, etc.), insurance, the management agents fee and local property taxes. Rent collected must be declared as income and is liable for income tax although the percentage can be reduced by purchasing the property as a company.

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