History

The name of Poland comes from the name of the Polanie tribe. In IX - X century there existed a few pre-state territorial organizations. Polanie, who settled near Gniezno, managed to unite most tribes dwelling in the area and established the state reigned by the Piast dynasty. A shock therapy program during the early 1990s enabled the country to transform its economy into one of the most robust in Central Europe. Despite a temporary slump in social and economic standards, there were numerous improvements in other human rights (free speech, functioning democracy and the like). Poland was the first post-communist country to regain pre-1989 GDP levels. Poland joined the NATO alliance in 1999 along with the Czech Republic and Hungary. Polish voters then said yes to the EU in a referendum in June 2003. Poland joined the European Union on May 1, 2004.

Property Prices

Range varies according to what you wish to purchase as shown below:
From around £107,000 for a 3 bedroom house
From around £335,000 for large villa
From around £60,000+ for a 2 bedroom apartment
Building lots can be purchased for around £16 per sqm.
Downtown tenement houses are between £185,000 - £420,000
Palaces are available to purchase from £500,000+
Properties is Krakow vary from £26,000 - £105,000 for apartments.

Where to buy

The popular places to buy property are Warsaw and Krakow. As Warsaw is the capital with a population of nearly 2 million and Krakow is the most attractive city to live in.

Cost of living

The average cost of living in Poland is very cheap.

Buying real estate

Citizens of the European Union wishing to purchase property in Poland are free to buy any property in Poland as long as that is their main residence. Farmland/forests cannot be purchased and in urban areas apartments & plots can be purchased up to 0.4 hectare. The Polish Ministry of Internal Affairs authorises anyone interested in purchasing property. A ‘permit promises' is issued which is valid for 6 months allows the person to shop for a property in Poland. The property has to be purchased before the expiry date of the permit. You will need to apply for right to buy.

You will need to appoint an estate agent when purchasing a property in Poland as this will make it much easier for you to buy. As the estate agent can pick you up from the airport and take you to see the property straight away and arrange a meeting with the notary. After the viewing you start to negotiate directly with the owners via the estate agent. You will need to find your own surveyor as in Poland building surveys are not carried out. There will be a separate charge for the survey.

Once the price is agreed a meeting will need to be taken place with the notary to make the sale legally binding. Both buyer and vendor will need to use the same notary and al meetings will have to be taken with both parties present. The buyer is responsible to pay for the notary fee which includes all the taxes that need to be paid. The costs are around 2-2.5% of the total price of the property. You will need an official translator to read the contract to you and you will be required to sign the documentation. This will cost between £35 and £80.

An ‘initial contract' will be drawn up by the notary which will summarise all the details and conditions of the sale. The deposit will have to be paid by the buyer which is non-refundable. A completion date must be set. The notary will carry out the final checks and the vendor must supply the right documents. After the final contract has been signed the rest of the money will need to be exchanged and the vendor will need to supply a file declaring from the council that there are no loans secured on the house. This is very important as in Poland loans secured on a property stay with the property not the owner and therefore will be passed to the new owner.

Once completion has taken place, all the telephone/electricity/water bills will need changing to the new owners name, so the buyer will need to spend the rest of the day with the old owner sorting this out. As this is not possible through writing/telephone.

Legal

A notary will need to be appointed to act on your behalf to get he contract signed and to completion.

Fees payable

If you are using an estate agent, there will be estate agent fees to pay, notary fees, translator fee and the building survey.

Taxes

VAT is included in every product/service purchased. Personal Income Tax (PIT) is levied on earnings above £13,000 per year, which is about 40%. From real estate sales is 10%, interest and intellectual property there is a flat rate of 20%. Excise duty is paid on tobacco, alcohol, motor fuels, perfumes and cosmetics, playing cards, firearms, cars, yachts and boats. Corporate tax on businesses is 15%. The government sets local taxes, and stamp duties are between 0.1% and 2%.

Finance

Polish mortgages are available to various nationalities. Polish mortgages are repayment based only. The minimum amount that can be given is £20,000 and there is no maximum amount. You can borrow up to 50% of the property price if self-employed and up to 70% if employed. Proof of income is required in all cases, terms are 5-20years. If you are employed, you will need to produce, you're last three months payslips, P60/employers reference and your last 6 months Personal bank statements. If you are self-employed you will need copies of your Audited Accounts together with you last 12 months business, and 6 months personal bank statements. The currency used for Polish mortgages is Swiss Francs, US Dollars or Euros. You may need to open a New polish bank account when applying for a mortgage.

Embassy

Consulate General in London
73 New Cavendish Street
London W1N 4HQ
tel: +44(0)20-7580 0476
fax: +44(0)20-7323 2320

http://www.mswia.gov.pl/