Real Estate Investment in Poland for Expats

Published on and written by Cyril Jarnias

Investing in real estate abroad is a strategic decision filled with unique opportunities, and Poland stands out as a prime destination for expatriates. Thanks to its sustained economic growth, an accessible real estate market, and a strategic geographic location in the heart of Europe, Poland offers a promising environment for diversifying investments.

This guide explores the many benefits of purchasing property in Poland, while detailing the essential steps to navigate this dynamic market. Whether you’re looking for a second home or a lucrative rental investment, Poland presents attractive prospects, blending historical charm with modernity.

Understanding the Legal Framework for Real Estate Investment in Poland

Legal Framework for Real Estate Investment in Poland

Fundamental Laws Governing Real Estate

Main LawCore Purpose
Land Property Law (1994)Definition of property rights and co-owner obligations
Real Estate Management LawManagement and administration of public and private properties
Planning and Development LawZoning regulations, issuance of building permits
Agricultural System Organization LawProtection, management, and restrictions on land acquisition
  • Real estate ownership must be registered in the Land and Mortgage Register.
  • Sales contracts must be executed before a notary.
  • Construction and zoning standards are strictly controlled.

Property Rights for Residents and Non-Residents

  • EU/EEA Nationals: Can freely acquire apartments, houses, and commercial premises.
  • Non-EU/EEA Nationals: Acquisition possible but often requires authorization from the Ministry of the Interior, especially for land (including agricultural and forest land).
  • Certain restrictions remain for agricultural land, forests, and properties located in strategic areas.

Types of Properties Available for Purchase

Property TypeAccess for EU/EEA ForeignersAccess for Non-EU/EEA Foreigners
ApartmentYesYes, sometimes with authorization
Single-Family HouseYesYes, sometimes with authorization
Commercial PremisesYesYes, sometimes with authorization
Urban LandYesYes, authorization required
Agricultural/Forest LandRestrictionsRestrictions and authorization

Land Acquisition by Foreigners

  • Urban Area: EU/EEA citizens purchase without restrictions; non-EU/EEA require authorization.
  • Rural Area (Agricultural/Forest Land): Acquisition strictly regulated, even for EU/EEA citizens; procedures and authorization conditions are more burdensome for non-residents.

Legislation on Real Estate Transactions

  • Obligation to execute the deed of sale through a notary.
  • Mandatory registration of the transaction in the Land and Mortgage Register.
  • Pre-emption rights for the State or local authorities on certain types of properties (notably agricultural land).

Applicable Taxes

Tax TypeRate/Main Terms
VAT (Value Added Tax)8% or 23% depending on property type and new/old status
Real Estate Transfer Tax2% (on property value, excluding VAT)
Property TaxAnnual, rate set locally
Tax on Buildings/StructuresNew definitions and rules applicable since 2025

Reforms and Transparency (2025)

  • Obligation for developers to publish the price per square meter of properties for sale on their websites, with accessible price history.
  • New definition of buildings and structures for property tax.
  • Simplification of registration procedures and computerization of land registers.

Practical Tips for Expatriates

  • Seek assistance from a local real estate attorney to:
    • Verify the validity of property titles and absence of mortgages.
    • Ensure compliance with zoning and co-ownership rules.
    • Understand tax implications (VAT, transfer tax, local taxes).
  • Prefer transactions through reputable agencies and request an up-to-date extract from the Land and Mortgage Register.
  • Account for authorization acquisition timelines for land purchases, especially outside urban areas.
  • Check for any pre-emption rights of the State or local authorities.

Good to Know:

Non-residents often need to obtain authorization to acquire rural land, while purchasing in urban areas is generally more flexible. Consider hiring a local attorney to effectively navigate the complex laws on transactions and real estate taxes, such as VAT and transfer duties.

Administrative Procedures for Buying Property as an Expatriate

Real estate purchase in Poland for expatriates is governed by specific rules depending on the buyer’s nationality, the nature of the property, and its use.

Nationality / StatusAuthorization Required?Main Exceptions and Restrictions
EU/EEA/Swiss CitizensNoRestrictions on agricultural and forest land
Other ForeignersYes, MSWiA permit mandatoryExceptions for certain residential properties, residency conditions

Main Laws and Regulations

  • Nationals of the EU, EEA, and Switzerland can freely acquire apartments, houses, or residential premises, except for agricultural and forest land, for which strict restrictions remain.
  • Non-EU/EEA/Swiss foreigners must obtain authorization from the Minister of the Interior and Administration (MSWiA), except for exceptions (e.g., long-term residence, acquisition following marriage to a Polish citizen, inheritance, etc.).
  • Acquisition of agricultural land over 3,000 m² is原则上 reserved for individual farmers, even for EU citizens.

Key Steps in the Real Estate Purchase Process

  1. Verification of Property Status (owner, absence of debts or mortgages, property use: residential, agricultural, etc.)
  2. Signing a Preliminary Contract (Umowa przedwstępna):
    • Defines transaction conditions
    • Usually accompanied by a deposit (zadatek) of 10% to 20% of the price
  3. Obtaining Any Necessary Authorizations (if required):
    • Application for MSWiA permit for non-EU/EEA/Swiss nationals
  4. Obtaining Administrative Documents:
    • Polish tax identification number (PESEL or NIP)
    • Residence or work permit in Poland if required by law
    • Proof of identity and address
  5. Signing the Authentic Deed of Sale Before a Notary:
    • Payment of balance
    • Registration of ownership in the land register
  6. Tax Registration and Payment of Taxes:
    • Declaration to the tax administration

Required Administrative Documents

  • Tax Identification Number (NIP or PESEL)
  • Passport or ID Card
  • Residence or Work Permit (for certain statuses)
  • MSWiA Authorization (if required)
  • Proof of funds for acquisition
  • Extract from the property’s land register

Taxes and Fees to Expect

Type of FeeRate/Estimated Cost
Notary Fees0.5% to 2% of property price
Real Estate Transfer Tax (PCC)2% of property price
Registration Feesapprox. PLN 200
Real Estate Agency Fees2% to 3% of property price (optional)
Legal/Attorney Feesdepending on service

Practical Tips to Facilitate the Process

  • Hire a Specialized Attorney in Polish real estate law to verify property compliance, contract validity, and transaction security
  • Use a Reputable Real Estate Agency for administrative support and negotiation
  • Check the Property’s Mortgage and Cadastral Situation before any commitment
  • Anticipate Permit Acquisition Timelines for non-EU/EEA/Swiss nationals: the process can take several months
  • Translate All Official Documents by a sworn translator if you do not speak Polish

Recommendations to Overcome Administrative Difficulties

  • Research restrictions in advance based on property type
  • Prepare a complete file to expedite authorization acquisition
  • Allow time for document collection and administrative procedures
  • Seek assistance during official signings, especially at the notary, to avoid any contractual ambiguity

Key Takeaway: Assistance from a legal professional or local real estate agency is highly recommended to secure the purchase and navigate the administrative complexity of the Polish market.

Good to Know:

In Poland, expatriates often need to obtain authorization from the Ministry of the Interior to purchase real estate; ensure you have a local attorney to navigate the preliminary contract and notarial process, while budgeting for transfer and notary fees typically around 2% to 5% of the sale price.

Financial and Tax Considerations for a Successful Investment

To succeed in real estate investment in Poland, it’s crucial to understand the costs associated with purchasing a property. Here’s an overview of the main costs and tax implications for expatriates:

Purchase-Related Costs

  • Notary Fees: Approximately 1% to 2% of the property value, covering authentication of the deed of sale.
  • Real Estate Agency Fees: Generally between 1.5% and 3% of the purchase price, often shared between parties.
  • Transfer Tax (PCC): 2% of the market value or purchase price, applicable to existing properties.
  • VAT: 8% for new houses under 150 m², and 23% for those exceeding this size.

Tax Implications for Expatriates

  • Taxes on Rental Income: Rental income is taxed at a flat rate of 8.5% on gross income.
  • Tax Filing Obligations: Expatriates must declare their rental income in Poland and potentially in their home country.
  • Double Taxation Agreements: Poland has agreements with several countries to avoid double taxation, which can influence the choice of tax residence.

Financing for Expatriates

  • Access to Mortgage Loans: Expatriates can access mortgage loans in Poland, although conditions may vary by bank.
  • Banks Offering Loans: Some Polish banks offer mortgage loans to foreigners, often with additional guarantees.
  • General Conditions: Interest rates and repayment terms may vary based on the borrower’s financial situation and property type.

Practical Tips

  • Managing Currency Fluctuations: Use specialized fund transfer services to minimize costs related to currency fluctuations.
  • Maximizing Rental Yields:
    • Strategic Location Choice: Invest in areas with high rental demand.
    • Active Management: Use property management services to optimize income and comply with local regulations.

Purchase-Related Costs Table

Cost TypeRate/AmountNotes
Notary Fees1-2%Paid by the buyer
Agency Fees1.5-3% + VATOften shared between parties
Transfer Tax2%Applicable to existing properties
VAT (New Properties)8% or 23%Depending on size and property type
Registry FeesPLN 200-300Fixed cost

Financing Conditions Table

ElementGeneral Conditions
Interest RateVaries by bank and loan type
Repayment PeriodTypically between 20 and 30 years
GuaranteesOften required for mortgage loans
Banks Offering LoansCertain Polish banks, with specific conditions for foreigners

Good to Know:

In Poland, notary and agency fees can represent up to 5% of the purchase price, while the existence of double taxation agreements can reduce taxes on rental income for expatriates. Polish banks offer competitive mortgage loans to foreigners, but it’s advisable to compare interest rates and account for currency fluctuations to optimize rental yield.

Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.

About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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