Are there any restrictions on the acquisition of real estate in Poland by foreigners?
For the acquisition of certain types of real estate in Poland by the citizens of countries that are not members of the EU, there are some certain restrictions.
Without restrictions, natural persons can purchase apartments (living quarters) and commercial (non-residential) spaces, in other words, real estate, which is not a separate object that is connected to the land, but a part of the object with the rights to a common land plot.
For the acquisition of objects with plot of land and the plots of land themselves, for natural persons the limit is getting the permission from the local administrative authority.
The acquisition of any type of real estate by a legal entity (a commercial organization established by a buyer in Poland) there are no legal restrictions to acquire property.
What is the amount of duties and taxes that a buyer must pay when buying property in Poland?
Acquisition of primary real estate is not taxed.
Acquisition of real estate from the secondary market is taxed at a rate of 2% of the market value of real estate, as a rule, for the market value of real estate, the price accepted is specified in the contract of sale, except for the situation when the tax authorities will consider the price of real estate highly understated or inflated, and the taxpayer will have to pay tax based on the difference in price he paid and the value established by the of real estate expert from the tax authority, or, in other case, the buyer will have the right to get the refund based on the actual prices difference.
Acquisition of real estate by legal persons may be subject to VAT at a rate of 7% on residential property and 22% on commercial real estate, depending on whether the property was subject to VAT on the previous transaction. This tax can be returned in full from the tax authority, which is obliged to transfer money to the account given within three months
What is the amount of property tax in Poland?
The law establishes the maximum tax rates for real estate.
Exact rates are set by the local administrative authority, and they cannot be higher than the maximum established rate per square meter of real estate.
The maximum tax rates for real estate are established by law in the following amount:
- for living quarters (apartments) - 70-90 gr. (0.7-0.9 zł) / sq. m. / year,
- for commercial real estate - 17 zl. / sq. m. / year,
- on plots of land - 4-10 gr. (00.4-0.1 zł) / sq. m. / year,
- for cottage houses there is a land and a house tax in amount of about PLN 200-300 per year.
What is the payment scheme for the purchase and sale?
There is a cash and non-cash form of payment, as a rule, with a preliminary contract, the buyer contributes up to 10% of the value of real estate as a guarantee of concluding a contract of sale.
If the transaction is terminated due to the fault of the buyer, the deposit remains with the seller, if, through the fault of the seller, the buyer must be paid the deposit in double size.
The rest of the amount named in the contract of sale and purchase is paid for in cash or cashless form. You can also conclude a sales contract without a preliminary contract, if you have money in your Polish bank account
Describe the scheme for obtaining a residence permit in Poland?
There are two categories of residence permit: temporary (one year) and permanent.A temporary residence permit can be obtained if you study and live, work, you have a firm or a business activity in Poland.
A permanent residence permit can be obtained if you have Polish ancestry or you live continuously in Poland for five years, with years of study divided into two (respectively, if you studied for five years, then the years of study are counted as two and a half years) .
In order to obtain a temporary residence permit, you must submit a form with a set of documents. A mandatory condition is a certain number of days of stay on the visa, no less than forty-five. If the state institution of foreign affairs does not have time to consider your case, you will be given an extension of the visa for the required period for its consideration.
Does the marriage with a citizen of Poland give the right to automatically obtain citizenship in Poland.
The conclusion of marriage with the citizens of Poland gives the right to citizenship, you should submit a questionnaire with a set of necessary documents to the district foreign affairs office, go through some procedures, interviews.
The period for obtaining citizenship from the date of delivery of the set of documents lasts up to two years.
How long does it take to verify the property in Poland?
Real estate check is carried out within seven working days, depending on the form of ownership of the property.
How long does it take to issue a permit to purchase real estate with a land plot for natural persons?
The permit is issued by the Ministry of Foreign Affairs within three to six months.
Is it possible to make a transaction without going abroad, directly from foreign countries?
Registration of a transaction, without going abroad, is possible when a notarized power of attorney is issued (for purchase, sale or lease of real estate) to a natural or legal person that resides in Poland temporarily or permanently. The power of attorney must be issued with an apostille stamp, which can be issued at the Polish Embassy.
Will I be able to rent the apartment I bought? What do I need?
You can rent an apartment purchased in Poland. For this you need to register an apartment in the tax inspection and choose the form of tax calculation (from 8.5% to 18.32%). The first payment for renting an apartment must not be registered earlier than the documents in the tax inspection are issued. Payment of property leasing tax is made in Poland.
What is the process of the subsequent sale of real estate, if I need it? What problems do you face, how does it happen?
You can set up real estate for sale almost immediately after its purchase, you should only consider that when selling a property earlier than five years from the date of purchase, you will have to pay income tax, or to allocate the proceeds to purchase the next property.
The sale process is standard: real estate advertising, presentation, registration of a deal with a notary. The speed of real estate sales directly depends on the price. Accordingly, if you need to sell an apartment as soon as possible, you will have to set the price below the market price, if not, then the average term for the sale of residential real estate on the Polish market lasts up to three months.
There is the possibility of concluding an exclusive agreement with a real estate agency for this real estate and the agency will fully engage in its sale, you will not have to attend numerous presentations, the meeting with the buyer will take place only at the signing of the pre-sale contract, or, if the client does not credit the purchase of an apartment, purchase and sale from a notary.
I live in Russia all the time. I received an inheritance in Poland after the death of my mother - 1/4 of the apartment. The apartment is already sold. Where should I pay the tax and in what amount?
You should pay a tax of 19% of the amount received before the end of April 2013, you should also return the PIT28 declaration to the First Tax Inspectorate in Gdansk, there is a department that serves foreigners.
As for the tax, the date of death is important here, since the statutes changed several times and the amount of tax is determined by the moment of death. The specific location of the tax inspection for foreigners is determined by the location of the position of the sold real estate.
Is it possible to notarize a lease contract for an apartment to a foreign citizen? Can this be useful for the embassy when opening a visa?
Registration by a notary of an apartment rental transaction is possible, there are no restrictions on citizenship, but the owners of apartments are reluctant to do so. The reservation in the hotel is not always paid, and for the consulate the main thing is that there should be confirmation, issued in paper or electronic form.