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Buying property in Poland as a foreigner
Moving to Poland from the UK? One of the first things you might need to organise is somewhere to live.
If you’re interested in buying property in Poland - to live in or as an investment property or holiday home - read on.
Below, you’ll find a comprehensive guide to buying property in Poland as a foreigner. This includes tips on starting your house hunt, the latest Polish property prices and a step-by-step look at the process of purchasing a home there.
If you’re looking for ways to save money on currency exchange when buying property in Poland, check out the money services provider Wise. You can send large transfers with Wise for low fees* and great exchange rates - making it ideal if you’re sending a secure international transfer.
Buying property in Poland as a foreigner - a step-by-step guide
Before you start your house hunt, it can be useful to know a little about how the process of buying property works in Poland.
Here’s an overview of the steps involved:¹
1. Find a property and arrange viewings
Before you view any properties, it’s important to get your finances in order, set your budget and define exactly what you’re looking for. Then you can use online property portals and/or local estate agents to find properties - we’ll give you some tips on where to start your search later in this guide.
You might need to have your mortgage offer in place before you can attend viewings.
If you find somewhere you like, move fast. Arrange a viewing as soon as you can, and start researching the area in the meantime.
2. Make an offer
Once you’ve found your dream home, you’ll need to make a competitive offer or bid to the real estate agent or directly to the seller.
You might be asked for evidence of how you’ll finance the purchase at this stage, such as your mortgage agreement or a letter from your bank or lender.
3. Sign the preliminary contract
If your offer is accepted, the next step is for both parties to sign the preliminary contract. You may also pay a deposit at this stage, the amount of which will be negotiated with the seller and estate agent. You should contact your mortgage provider to finalise the financing for your purchase.
At this stage, you might also want to arrange for a building survey or inspection to be carried out.
4. Apply for your permit (if needed)
If you need to apply for a permit to buy property in Poland as a foreign citizen, now is the time to submit the application to the Ministry of Interior.
5. Appoint a lawyer
You’ll need a solicitor or conveyancer to carry out the legal work for the purchase, which includes:
- Preparing the Purchase Agreement (Umowa Sprzedaży), a legally binding contract between the buyer and seller that outlines the terms and conditions of the sale.
- Applying for your permit
- Carrying out due diligence checks - such as verifying the legal status of the property
- Post-agreement work, such as registering the transfer of the property title in the land register.
6. Sign the Purchase Agreement
A completion date will be set, for the signing of the Purchase Agreement in the presence of a notary public and the transfer of the remaining balance. You’ll get the keys to your new home and your lawyer will register the sale with the land registry.
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Can you get a mortgage from a Polish bank as a non-resident?
Polish banks and providers do offer mortgage loans to foreigners, but the conditions, requirements and rates may differ compared to how it works for locals.
You’re likely to be asked for a valid residence permit as part of your application.² So, this could make it impossible to get a Polish mortgage if you’re living in the UK or another country.
However, banks such as PKO Bank Polski, Bank Pekao and Santander Bank Polska have been known to provide mortgages to non-residents² - so it could be worth contacting them to find out about the requirements.
It’s not absolutely essential to have a Polish bank account in order to get a mortgage, but it might make the process easier.
In order to apply for your mortgage, you’ll need to provide certain details and documents. The requirements will vary between banks, but generally you’ll need valid ID, proof of salary/employment and the details of the property you’re buying.
Taxes and fees for owning property in Poland
Alongside the property price, you also need to budget for the fees and taxes which may apply to your Polish property purchase.
Here are the essential costs you need to know about:²
- Property transfer tax - 2% of the property’s market value
- Property tax (annual) - 0.5% to 2% a year
- Registration fee - approx. 0.1% of the property value
- Notary fee - varies, usually from 0.25% to 3% of the purchase price
- Estate agent commission - 2-3% of the purchase price or a pre-agreed fixed fee.
As you can see from the above, the estate agent’s commission is paid by the buyer. This is unlike in other countries, where the fee is paid by the person selling the property.
What’s the property market like in Poland?
The Polish property market is pretty strong at the moment, although there’s been a slowdown in the growth of house prices.
In 2023, prices for apartments in major Polish cities were recorded as rising 5.5% year-on-year, but this was down on the increases of 9.63% in 2022 and 11.63% in 2021.³
While this may make property more affordable for you as a buyer, you might find it difficult to find and secure your dream home. Demand has peaked sharply in recent months, while construction activity is falling (so fewer new homes are being built).³
Can foreigners buy property in Poland?
Yes, foreigners can buy property in Poland, but the process and requirements vary depending on your nationality.
EU and EEA citizens can buy property just like a local, which includes both residential and commercial real estate. The process should be pretty straightforward.
But for non-EEA/EU countries like the UK (since Brexit), it’s more complicated. It’s likely that you’ll need a permit from the Polish government’s Ministry of Interior, which is granted (or declined) based on how the purchase aligns with the interests of the country.²
You’ll need to submit an application along with supporting documents, which includes evidence of your legal status in Poland and details of the property purchase.
If it’s residential property you’re buying, you should find the process relatively hassle-free. You’ll need to check, but you might not need a permit if you’re buying an apartment.⁴
But you might find it more complex if you’re buying commercial property or land (especially agricultural land).
Can you buy property in Poland and get residency?
There’s no direct route to permanent residency through the purchase of property in Poland.
To apply for residency there as a non-EU national, you’ll usually need to go down the route of employment, starting a business, studying or having family ties in Poland.²
How much are the property prices in Poland?
Now we come to that all-important question - how much is property in Poland?
The cost of living in Poland is generally lower than the UK, and it’s the same story with property prices.
On average, it’s between 39% and 42% per square metre cheaper to buy an apartment in Poland.⁵ Although of course, it depends where and what you buy.
And here’s a guide to what you can expect to pay per square metre in some of Poland’s major cities:⁶
| City | Average apartment price per sq.m - city centre | Average apartment price per sq.m - outside city |
|---|---|---|
| Warsaw | 21,826 PLN | 14,679 PLN |
| Gdansk | 19,589 PLN | 12,630 PLN |
| Krakow | 19,332 PLN | 13,433 PLN |
| Wroclaw | 15,530 PLN | 11,110 PLN |
| Poznan | 12,556 PLN | 9,299 PLN |
| Katowice | 10,894 PLN | 8,166 PLN |
| Lodz | 8,934 PLN | 7,114 PLN |
Remember though that property prices will also vary depending on the type of property.
Another thing to note when figuring out the price for property in Poland is that international transfers could get expensive, especially if the provider adds a margin to the exchange rate to convert your pounds. Consider checking out Wise to handle your large transfers with mid-market exchange rates and low, transparent fees*.
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Where is the cheapest place to buy property in Poland?
In terms of the major cities in Poland, Lodz is the cheapest - followed closely by Poznan and Katowice.
If you’re on a tight budget, you may be best looking outside of city centres and popular urban areas. You never know, your dream home in Poland could end up being in the countryside.
How can you find a property in Poland?
There are a few ways you can find property to buy in Poland. The main routes are real estate agencies and online property websites.
Property agencies and agents in Poland
It isn’t necessary to use a real estate agent to find a property to buy. But it can be helpful, especially if you’re moving to Poland from the UK and are unfamiliar with the local property market.
Property websites in Poland
You can also search for property in Poland online, from the comfort of your current home in the UK. As long as you have an internet connection, you can browse properties to your heart’s content.
To help you start your search, here are some of the most popular property websites for Polish real estate:
What are some of the pitfalls of buying property in Poland?
Generally speaking, Poland is a safe place to buy property. But things can still go wrong, and there are some pitfalls and risks to look out for. There’s also the language barrier, which can make it extra difficult for foreign buyers to get to grips with the Polish property market.
Here are some important things to be aware of:⁷
- It’s crucial to check the legal status of a property. One of the most important things to do when buying property in Poland is to check the Land and Mortgage Register (Księga Wieczysta). This will give details of the legal status of the property, which is essential for avoiding complicated legal issues or disputes later on.
- You might need a permit as a non-EU citizen. As we’ve mentioned earlier in this guide, you might need to apply to the Ministry of Interior for permission to purchase property or land as a foreign citizen. It’s crucial to check this and get your application in as early as possible.
- Building restrictions may apply to land. Known as Decyzja o warunkach zabudowy or Decision on Building Conditions, this document sets out how a plot of land can be developed. It can include quite specific restrictions, to do with planning and/or zoning regulations. This could mean you can’t build what you had planned when you bought the land.
And of course, you should take all possible measures to protect yourself from scams and fraudsters.
How do you choose the right property in Poland?
The right property for you will all depend on your search criteria. Namely, where you want to live, the type of home and of course, how much you can afford to spend.
If you’re not already living there, it’s worth making a trip to the specific town or city in Poland you’re interested in. You’ll want to check out the local area and view properties, making sure to pay attention to local transport links and amenities.
Condition of the property
It’s a good idea to do as much research as possible before committing to purchase a property. A crucial step is checking the land registry to check the legal status of the property, as well as if any building conditions or charges are registered against the property.
You’ll also want to commission a building survey or inspection, which will flag up any major issues and give you a better idea of what you’re buying.
Moving into your Polish property
As you look forward to getting the keys to your new home, you’ll have a final few tasks to check off your list. These include taking out insurance, setting up your utilities and carrying out any energy efficiency renovations.
Insurance
It’s not mandatory, but it’s strongly recommended to take out a buildings insurance policy starting from your completion date. You might also want to arrange the contents cover too.
Setting up utilities
If you know when your completion date will be, it makes sense to get some essentials set up in advance of moving in.
A prime example is utilities, such as heating, power and water. Get these sorted as early as you can, and the moving process should be a little smoother.
Energy efficiency renovations
Purchased a Polish property with an older heating system or minimal insulation?
From draught proofing to heating upgrades, there are lots of things you can do to improve the energy efficiency of your new purchase.
The right upgrades can also make your property more comfortable to live in, which is especially important for properties located in colder parts of the country or in areas which experience extreme weather.
And that’s it - a comprehensive guide to buying property in Poland for foreigners.
We’ve covered all the essentials, including Polish property prices, how to start your search, what fees and taxes you’ll pay as a buyer, and info on how the buying process works.
After reading this, you should have a better grip on how it all works, and be ready to start house hunting.
And, if you want to save money while buying your new property in Poland, use the Wise account to send your international transfer. It’s not a bank account but offers many similar features.
Here are the main benefits for using Wise: |
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Sources used:
- LawyersPoland.eu - Purchase Property in Poland
- Investropa - Buying property in Poland as a foreigner: a full guide
- Global Property Guide - Polish house prices continue to rise, albeit at a slower pace
- Dudkowiak - Property purchase in Poland
- Numbeo - Cost of living comparison between UK and Poland
- Numbeo - Prices by city
- Investropa - Buying property in Poland: scams and pitfalls
Sources last checked on date: 08-Aug-2024
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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