Poland real estate: how to make the best deal
Poland is a country with many opportunities for both Polish nationals and foreigners. This is a convenient place to live, work, study and do business. Also, the Polish real estate market attracts investors with its low-interest rates and prices. Combined with economic stability all of this provides a great mix of benefits for local and foreign businessmen.
There are several kinds of Poland real estate for sale available for non-Polish investors:
- Lands (with buildings or without them)
How a foreigner can purchase real estate in Poland
First, Polish legislation gives a precise definition of who a foreigner is:
- a citizen of a different state;
- a legal entity which was incorporated in another state;
- a partnership of citizens of another state (other states) that has no legal personality and has registered a firm in another state or according to the laws of another state;
- a firm which was incorporated in Poland but is managed by the persons or legal entities described above.
Polish legislation has different regulations for foreigners willing to invest in Polish real estate coming from EU and other states. Thus, a citizen of an EU country may buy an apartment or land up to 0,4 hectares without special permissions. Other than that, a permission from the Ministry of Internal Affairs is required. All non-EU country citizens must get a permission from the Ministry no matter what they intend to buy.
To obtain the permission, a foreigner must submit an application and provide information about his legal status, the piece of property he wants to acquire, its legal form and also describe the ways how the property will be utilized. Also, the foreigner must prove that he has connections with Poland, for instance, he has a registered business in the country or holds a permit to settle.
Note that the Ministry has a right to ask for other documents, if necessary.
Also, a foreign investor may get a conditioned permission, which means that he will be able to purchase the asset after certain conditions are met.
Which asset to choose from real estate properties for sale in Poland?
Unless you already know the market, you should conduct a deep investigation before making an investment in real property in the country. You have to be sure you get the best deal and the asset you are buying is safe.
Our real property professionals know the local property market well. We have provided support to dozens of local and foreign investors willing to buy commercial real estate in Poland. This is what we can do for you:
- assist you in receiving a permission and other papers which are required to buy real property;
- lead the process of making the deal, including legal advice, getting an account in a bank, registering in appropriate registers;
- make research of the market and give you a deep analysis of primary and second-hand real estate markets;
- give recommendations on the best deals available for you;
- make an audit of the object you want to buy to make sure it is safe.
How to make the deal?
There are two ways to conduct negotiations with the asset owner – through an agent or by yourself. Everything is transparent.
When you and the owner agree on the price, you must visit a notary office to conclude an agreement. The notary must provide an initial agreement specifying the details of the deal. You should accept each point. After this, both parties agree on the date when the deal should be completed and the buyer pays a 20% deposit. Then, the vendor must provide papers proving there are no loans secured to the asset and the buyer should pay the rest of the money.
Note that all the papers are made in Polish. If you don’t know the language well, it is advisable to entrust a lawyer to represent your interests and help you conclude the agreement.