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Purchase Process in Poland

Below is the standard purchase process in Poland and issues that may affect that purchase :

• Apartments can be freely purchased by foreigners. Land for commercial purposes can be freely purchased by citizens of the European Economic Area (EEA). Buyers of land for housing and recreation (that must exceed 0.50 hectares), which is not to be a foreigner’s permanent place of residence, must apply for a purchase permit from the Ministry of Internal Affairs and Administration (MIA). As of 2009, this requirement should be abolished.
• A preliminary contract commits both parties to the sale. A deposit of between 10% and 30% is payable at this point.
• The preliminary contract sets a date for the signing of the final contract in the presence of a notary. The notary checks the property title for undisclosed charges and to ensure that the seller has the right to sell.
• The purchase price is transferred after the final contract is signed.

Costs of a standard property purchase in Poland include the following:

• Solicitor fees will be around £150 or 1% on transactions over £9,000 (plus VAT at 22%).
• Registration fees are between 0.3% and 1.6% of the purchase price.
• Notary fees are between 0.25% and 3.3% of the purchase price.
• Resale tax is 10% if the property is resold within five years (unless the proceeds are reinvested in further property in the country).
• Rental income is liable for income tax; however, this can be reduced by buying the property as a company.
• The lease of immovable property for the purpose of accommodation (not for business purposes) is exempt of VAT.
• Land sales are subject to a 22% VAT.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.

Read more about tax and mortgage in Poland and the purchase process to buying property Poland