Brexit and Buying Property in Poland: A Complete Guide
Since Brexit, many UK citizens are exploring new opportunities to invest in property abroad, with Poland emerging as a popular destination. Whether you are looking for a vacation home, a retirement haven, or an investment opportunity, this guide will help you navigate the process of buying property in Poland post-Brexit.
How Brexit Has Changed Property Buying for UK Citizens
Brexit has brought changes to the rights and processes for UK citizens purchasing property in EU countries. Here are the key changes that affect property purchases in Poland:
Loss of EU Citizen Privileges: UK citizens are no longer treated as EU nationals, which means additional requirements might apply.
Permit Requirements: Some properties may require special permission for purchase, particularly agricultural or forest land.
Currency Exchange Considerations: With the UK no longer part of the EU, fluctuations in the British pound against the Polish zloty could impact property costs.
Key Questions UK Buyers May Have Post-Brexit
Can I buy property in Poland as a non-EU citizen?
Are there additional taxes or fees for UK citizens?
What types of properties are restricted?
How does the property-buying process differ from the UK?
Is it better to buy as an individual or through a company?
Can UK Citizens Still Buy Property in Poland?
Yes, UK citizens can still buy property in Poland. However, the rules differ depending on the type of property and its location:
Residential Properties: Typically, UK citizens can purchase apartments, houses, and other residential properties without additional permits.
Agricultural or Forest Land: Buying such properties may require a permit from the Ministry of Interior and Administration, a process that could take several months.
Commercial Properties: Foreigners can also buy commercial properties, although permits might apply depending on the location.
Common Types of Properties to Consider
City Apartments: Ideal for those planning to live in or rent out properties in major cities like Warsaw, Kraków, or Gdańsk.
Vacation Homes: Popular in regions like the Tatra Mountains or Masurian Lakes.
Investment Properties: Suitable for long-term rental income in high-demand areas.
Renovation Projects: Older homes in need of refurbishment, often available at lower prices.
Step-by-Step Process to Buy Property in Poland
Here is a detailed overview of the property-buying process in Poland:
1. Research the Market
Identify regions in Poland that suit your needs (e.g., cities for urban investments or countryside for tranquility).
Use online platforms, attend property expos, or connect with local real estate agents.
2. Understand the Legal Framework
Foreigners, including UK citizens, can own property in Poland under specific conditions.
Agricultural and forest land purchases are subject to restrictions, requiring permits.
Engage a lawyer who specializes in Polish property law to ensure compliance.
3. Secure Financing
If you need a mortgage, consult Polish banks that offer loans to non-residents. Requirements include:
Proof of income
A higher deposit (often 20-30% of the property value)
Stable financial history
4. Engage a Real Estate Agent
Work with a licensed agent who understands the needs of foreign buyers. They can:
Help you find suitable properties
Negotiate on your behalf
Assist with paperwork and due diligence
5. Verify Property Details
Check the property’s history through the Księgi Wieczyste (Land and Mortgage Register).
Confirm there are no outstanding debts or legal issues tied to the property.
Verify zoning regulations if you plan to make renovations or changes.
6. Sign a Preliminary Agreement
This document secures the property while you finalize financing and legal checks.
Typically, a 10% deposit is required, which may be forfeited if you back out of the purchase.
7. Complete the Transaction
Sign the final notarial deed (Akt Notarialny) in the presence of a notary.
Pay the agreed price, including taxes and fees.
Register the property in the local land registry to formalize ownership.
Costs, Taxes, and Fees When Buying Property in Poland
When planning your budget, consider the following costs:
Notary Fees: 0.25% to 3% of the property value.
Stamp Duty (PCC): 2% of the property’s market value, applicable to secondary market purchases.
VAT (If Applicable): 8% or 23% for new properties.
Real Estate Agent Fees: Typically 2% to 3% of the purchase price.
Legal Fees: Budget for a lawyer to review contracts and ensure compliance with Polish laws.
Currency Exchange Costs: Use a foreign exchange specialist to minimize currency conversion fees.
Additional Costs
Renovation and Repairs: If you’re buying an older property, factor in potential renovation costs.
Property Maintenance: Ongoing costs like utilities, building maintenance fees, and property management if you plan to rent it out.
Residency and Long-Term Stays
If you plan to live in Poland long-term, you might want to consider applying for residency. Owning property can support your application but does not automatically grant residency.
Requirements for Residency
Temporary Residence Permit: Often granted for work, study, or business purposes.
Permanent Residency: Requires proof of long-term residence and financial stability.
EU Long-Term Residence Permit: Available after several years of legal residence in Poland.
Consult with a residency expert to understand the best option for your circumstances.
Tips for UK Citizens Buying Property in Poland
Learn the Language: While English is widely spoken in major cities, many legal documents are in Polish. Hiring a translator or learning basic Polish is highly recommended.
Understand Local Laws: Research property ownership laws and any restrictions that may apply to foreigners.
Hire Experts: Work with a real estate agent, legal advisor, and financial consultant to ensure a smooth transaction.
Visit the Property in Person: Avoid buying sight unseen. A personal visit can help you better assess the property’s condition and location.
Research Property Taxes: Understand your obligations to avoid surprises.
Network with Other Expats: Join online forums or local expat groups to learn from others who have navigated the process.
Frequently Asked Questions
Do UK citizens need a permit to buy property in Poland?
For most residential properties, no. However, permits are required for agricultural or forest land.
Can I get a mortgage in Poland as a UK citizen?
Yes, many Polish banks offer mortgages to foreigners. Be prepared to provide proof of income, a deposit of 20-30%, and other financial documentation.
What are the risks of buying property in Poland?
Risks include fluctuating currency exchange rates, legal issues with the property, and unfamiliarity with local laws. Proper due diligence and hiring experts can mitigate these risks.
Are there restrictions on renting out property?
No, you can rent out your property in Poland, but you must comply with local tax regulations and declare rental income.
Conclusion
While Brexit has introduced new considerations for UK citizens buying property in Poland, the process remains accessible with proper preparation. By understanding the legal requirements, taxes, and financial implications, you can make informed decisions and enjoy the benefits of owning property in one of Europe’s most dynamic countries.
If you’re ready to start your journey, consult a Polish real estate professional and legal advisor to guide you through the process. Poland’s vibrant property market awaits!
