Poland has become an attractive destination for foreign property buyers, thanks to its growing economy, stable real estate market, and relatively low property prices compared to other European countries. However, the rules and requirements for purchasing property in Poland vary depending on whether the buyer is an EU citizen or a non-EU citizen. This article provides a detailed guide on what types of properties foreigners can buy in Poland and the legal requirements they must meet.
1. Property Purchase for EU Citizens
As a member of the European Union, Poland offers relatively straightforward property purchase rules for EU citizens. EU citizens enjoy similar rights to Polish nationals when it comes to buying real estate in Poland.
Types of Properties EU Citizens Can Buy:
- Residential Properties: EU citizens can freely purchase residential properties, including apartments, houses, and plots of land designated for residential use. There are no additional permissions required.
- Commercial Properties: EU citizens can also purchase commercial properties, such as office buildings, retail spaces, or industrial properties, without needing any special permits.
- Agricultural and Forest Land: While most types of property are easily accessible, purchasing agricultural or forest land can be more complex. EU citizens must meet specific conditions to buy such land. Generally, they need to have been residing in Poland for a period of at least five years and must be involved in agricultural activities.
Requirements for EU Citizens:
- Residence Registration: While EU citizens are not required to obtain special permits, they must register their residence in Poland if they plan to stay for more than 90 days. This registration should be done at the local Voivodeship Office (Urząd Wojewódzki).
- No Additional Permits: For residential and commercial properties, no additional permits or approvals are required for EU citizens.
2. Property Purchase for Non-EU Citizens
Non-EU citizens face more restrictions when it comes to buying property in Poland. The process is more regulated, and depending on the type of property, non-EU citizens may need to obtain special permissions from the Polish government.
Types of Properties Non-EU Citizens Can Buy:
- Residential Properties: Non-EU citizens can generally purchase residential properties, such as apartments and houses, without requiring special permission. However, if the property includes land (e.g., a house with a garden), a permit may be needed depending on the size and location of the land.
- Commercial Properties: Similar to residential properties, non-EU citizens can buy commercial properties without needing a permit, provided the property is not situated in a strategic or protected area.
- Agricultural and Forest Land: Purchasing agricultural or forest land is significantly more challenging for non-EU citizens. In most cases, non-EU buyers are required to obtain permission from the Ministry of Internal Affairs and Administration (Ministerstwo Spraw Wewnętrznych i Administracji, MSWiA) to purchase such land. The process is stringent, and permission is granted only under specific conditions, such as having long-term residency in Poland or being involved in agricultural activities.
Requirements for Non-EU Citizens:
- Permission from the Ministry of Internal Affairs: For certain types of properties, such as land or properties located near borders, non-EU citizens must obtain a special permit from the Ministry of Internal Affairs. The application process involves submitting various documents, including proof of identity, financial stability, and a statement of purpose for the property purchase.
- Residence Permit: While a residence permit is not always mandatory for purchasing residential properties, it may be required for buying land or if the non-EU citizen plans to reside in Poland long-term. The permit application process involves providing proof of financial means, health insurance, and a legal basis for staying in Poland, such as employment or business activities.
- Compliance with Additional Conditions: For non-EU citizens wishing to buy agricultural or forest land, additional conditions may apply. This could include requirements related to agricultural activities or residing in Poland for a certain number of years.
3. The Property Purchase Process for Foreigners
Regardless of whether the buyer is an EU or non-EU citizen, the property purchase process in Poland generally follows the same steps. However, non-EU citizens should be prepared for additional legal requirements.
Step 1: Verify Property Ownership
Before purchasing property in Poland, it is essential to verify the ownership of the property. This can be done through the land and mortgage register (księga wieczysta), which provides detailed information about the property, including any encumbrances, such as mortgages or legal disputes.
Step 2: Preliminary Agreement (Umowa Przedwstępna)
Once you have chosen a property, you will typically sign a preliminary agreement with the seller. This agreement outlines the terms of the sale, including the purchase price and the date of the final transaction. A deposit is usually required at this stage, which is typically around 10% of the purchase price.
Step 3: Secure Financing (If Needed)
If you require a mortgage to finance the purchase, you will need to apply for a loan from a Polish bank. Both EU and non-EU citizens can apply for mortgages in Poland, although the terms may vary depending on the lender. The bank will conduct a property appraisal to determine the loan amount.
Step 4: Obtain Required Permits (For Non-EU Citizens)
If you are a non-EU citizen and need a permit from the Ministry of Internal Affairs, you should begin the application process as soon as possible. The process can take several months, so it’s essential to plan accordingly.
Step 5: Final Agreement (Umowa Sprzedaży)
The final purchase agreement is signed in the presence of a notary public (notariusz), who will formalize the transaction. The notary ensures that all legal requirements are met and that the transaction is recorded in the land and mortgage register.
Step 6: Transfer of Ownership
Once the final agreement is signed and the purchase price is paid, ownership of the property is transferred to the buyer. The notary will register the new ownership details in the land and mortgage register.
4. Taxes and Fees Associated with Property Purchase
When buying property in Poland, foreign buyers must also be aware of the taxes and fees associated with the transaction. These include:
- Real Estate Transfer Tax (PCC): This tax is usually 2% of the property’s market value and is paid by the buyer.
- Notary Fees: The notary charges a fee for formalizing the transaction, which typically ranges from 0.25% to 3% of the property value, plus VAT.
- Registration Fees: A fee of approximately PLN 200 is charged for registering the new ownership details in the land and mortgage register.
- Legal Fees: If you hire a lawyer to assist with the transaction, their fees will depend on the complexity of the deal.
5. Conclusion
The Polish real estate market offers a range of opportunities for both EU and non-EU citizens. While EU citizens enjoy relatively straightforward access to property purchases, non-EU citizens may face additional legal requirements, particularly when buying land or properties in strategic locations. Regardless of your citizenship, it is essential to conduct thorough due diligence and seek professional legal advice when purchasing property in Poland.
By understanding the legal requirements and following the necessary steps, foreign buyers can successfully invest in Polish real estate and benefit from the country’s growing market. Whether you are looking for a residential home, a vacation property, or a commercial investment, Poland offers a range of options to suit various needs and budgets.