A Guide to Buying a Property in Poland

Overviewforeign nationals have been able to generate a
Being one of the first countries in the Soviet blocgood income through the years through this type
to toss off the Communist yolk, Poland was wellof apartment investment.
on the road to a more liberal economy with moreHoliday Property in Poland back to top
participation by foreign nationals than otherFor the first decade in which Poland was
Eastern European nations were when the Ironindependent of the Soviet bloc, tourism into the
Curtain fully collapsed. Foreign nationals have beencountry was not a booming business. However, as
investing in many segments of the Polishtime has gone forward, more and more foreign
economy, including purchasing real estate ofnationals are making Poland a holiday destination.
different types in the country.As a consequence, more foreign nationals each
Many foreign nationals have realized significantyear have purchased holiday or vacation
profits through the years by investing in realproperties -- primarily in the form of apartments,
estate in Poland. Indeed, the buying and selling ofbut a growing number of free standing residences
real estate in Poland over the course of the pastas well. Most real estate industry analysts predict
two decades has been brisk. Most industrythat the number of foreign nationals who choose
experts who are watching the real estate marketto purchase second home or holiday property in
in the Polish Republic now believe that the buyingPoland will increase over the course of the coming
and selling of real estate in Poland by foreigndecade.
nationals will increase even more over the courseMost of these experts anticipate that the biggest
of the coming decade. This will include activity bythrust will be in the purchase of apartments in
foreign nationals in the commercial, industrial andresort communities in Poland. The experts
residential real estate markets in Polandmaintain that these foreign nationals generally will
Investment Property in Poland back to topbe from European Union nations. There has been
As just mentioned, foreign nationals have beenan increase in foreign nationals from non-EU
very active in the Polish real estate market forcountries who also have found themselves
the past two decades. One area in which foreignattracted to resort real estate in Poland at this
nationals have been fairly heavily involved is inpoint in time .
investment real estate.Mortgage Options back to top
Since the Communist government in Poland wasWhen considering the options for a mortgage on
ousted, the government of Poland has beenyour overseas property there are a couple of
active in its efforts to bring foreign investmentchoices to consider;
into that country. As a consequence, theDo you consider raising finance on your existing
government has encouraged foreign nationals toproperty in the UK to cover the whole cost of
put their money into everything from commercialyour purchase abroad? A good idea if the interest
real estate enterprises such as office buildings,rate in the country in question is a lot higher than
apartment complexes and other residentialit is here in the UK as you will pay a lot less in
developments and even in the construction ofmonthly repayments.
industrial properties in some of the major urbanDo you secure a mortgage against the property
centers in the country. The trend towards thefrom a local bank in the country of purchase?
involvement of foreign nationals in the PolishThis can be a wise option especially if the interest
investment real estate market is expected torate is lower than our current UK interest rate.
continue onward unabated according to analystsMost overseas mortgage / bank lenders will
considering the economy and real estate marketrequire upto 30% deposit on mortgages.
in Poland.However, you will need to give some thought to
Residential Real Estate in Poland - Single Familyhow you will service your mortgage payments
Properties back to topeach month especially if you are not living or
Trade by foreign nationals in single familyearning in that country as you may well lose out
residential dwellings has been somewhat limited inon exchanging money each time to cover
the past couple of decades. While foreign nationalsmonthly expenses. Check out our Foreign
have been found buying single family dwellings inCurrency page to see how you can save money
Poland, the demand by foreign nationals for singlein this example
family dwellings has not been the most activeSome Builders and developers may well offer
part of the real estate market as far astheir own mortgage facilities on their properties
foreigners are concerned.for sale. This can be beneficial to both parties
With that said, there have been some foreigndepending on the logistics of the mortgage or loan
nationals who have family roots in Poland whofacility. Always check and compare with the two
have taken to buying a second residence withinoptions above before making your final descision.
the country. Many of these people are men andFor more details on Mortgages in Poland visit our
women who had parents or grandparents drivenMortgage page in the Poland section.
from the country during the Second World WarSpecific steps to buying real estate property in
or during the period of time that Poland was partPoland back to top
and parcel of the Soviet bloc.A foreign national is permitted to purchase and
There are many interesting and historic residentialown real estate in Poland. With that said, a foreign
properties in some of the smaller and more ruralnational must obtain the permission of the Ministry
communities in Poland. Some foreign nationalsof Home Affairs of the Republic of Poland in
have taken to purchasing these properties. Theseadvance of purchasing real estate in that country.
residences do provide solid retreats from theThe application process before the Ministry of
workaday world and have been sought after byHome Affairs is not a particularly complicated
more well heeled foreign nationals who enjoy theprocess. Indeed, there are lawyers in the country
challenge of renovating and remodeling real estate.that specialize specifically in this application process
Some people from foreign countries have takendue to the growing number of foreign nationals
to buying these larger residences in rural localeswho are buying real estate in Poland.
and have turned them into inns which are beingA company in Poland that has over 50% foreign
visited by foreign nationals on holiday. Theseownership must also obtain permission from the
types of inns are sprouting up across the countryMinistry of Home Affairs before that company
and are attracting more tourists into the countrycan purchase real estate in Poland. Again, the
each and every year. In addition, this type of realapplication process for a company is not
estate investment has proven to be veryparticularly complicated.
profitable for foreign nationals .There are some restrictions geographically as to
Residential Real Estate in Poland - Apartmentswhere a foreign national actually can purchase real
back to topestate in Poland. The Polish government restricts
The residential real estate market in Poland, whenthe ownership of real estate on the so-called
it comes to apartments and foreign nationals, hasPolish frontier. It is important for a foreign national
done brisk business in the past twenty years.to make certain that the locale in which he or she
Foreign nationals have been found snatching upintends to purchase real estate in Poland is not
apartments -- primarily in Polish urban centers andwithin one or another of these restricted zones.
resort venues -- for three primary reasons.Approval from the Ministry of Home Affairs to
First of all, with the Communists out and a morepurchase real estate in Poland generally is good
open, democratic government in place, manyfor a period of six months. A person can apply
foreign nationals have come to Poland to dofor an extension when the initial period expires.
business. Many of these foreign nationals haveOnce permission to purchase real estate is
found themselves within Poland on business for anobtained from the Ministry, a buyer of real estate
extended period of time -- and have foundmakes an offer to a seller, which will then be
themselves making repeated visits into thememorialized in a preliminary contract or
Republic of Poland. In this regard, these businessagreement for sale.
people have found it economical to invest in anFollowing the signing of this initial contract, the
apartment for their personal residence for thebuyer is given a specified period of time to obtain
time they are present in the country on business.financing. Additionally, the seller is obliged to make
Second, a notable number of men and womencertain that the title to the real estate is clear and
from foreign countries have purchasedcapable to being conveyed to the buyer during
apartments in Polish resort communities. While thethis time period.
drive to purchase vacation or holiday propertyIn most instances, the buyer is required to post a
has been a bit slow in Poland -- which will bedeposit at the time this initial agreement is
discussed a bit more shortly -- there are aexecuted between the parties. More often than
growing number of people from foreign nationsnot, the deposit is in the amount of 10 to 15%.
who have taken to purchasing an apartment inThe real estate purchasing process comes to an
Poland for holiday or second home purposes.end when the parties execute the final agreement
Finally, there are foreign nationals who havefor sale and conveyance of the real estate. A
purchased apartments in Poland to be leased ornew title is prepared, placing the real estate in the
rented to other people, primarily other foreignname of the buyer. The title is then filed with the
nationals. These people, these foreign nationalsgovernment.
who have purchased apartments for investmentOnce again, a foreign national does need to keep
purposes, have done so to serve both peoplein mind that prior permission of the Ministry of
coming to Poland on holiday and people coming toHome Affairs is required before a foreign national
Poland on business. By leasing apartments tocan purchase real estate in that country.
business and holiday visitors, these particular