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Everything you need to know before buying real estate is included in our Poland Property Pack
Buying property in Poland as a foreigner doesn't require full cash payment, but you'll need substantial upfront funds.
Polish banks do offer mortgages to foreign buyers, though requirements are stricter than for Polish citizens. Most foreign buyers need a 20% down payment plus 3-5% for closing costs, meaning you should plan for at least 25% of the property value in cash.
If you want to go deeper, you can check our pack of documents related to the real estate market in Poland, based on reliable facts and data, not opinions or rumors.
Foreign buyers in Poland typically need a 20% down payment plus 3-5% for closing costs, with mortgage rates around 7-8% as of September 2025.
Polish banks finance up to 80% of property value for qualified foreign buyers who can demonstrate stable income and good credit history.
| Requirement | Amount/Percentage | Details |
|---|---|---|
| Minimum Down Payment | 20% for foreigners | 10% minimum but banks prefer 20% for foreign buyers |
| Maximum Financing | 80% LTV ratio | Some banks offer up to 90% with additional insurance |
| Closing Costs | 3-5% of property price | Includes taxes, notary fees, and legal costs |
| Current Interest Rates | 7.3-8% | Variable and fixed rates as of September 2025 |
| Processing Time (Mortgage) | 2-6 weeks | Cash purchases complete in 1-3 weeks |
| Property Transfer Tax | 2% of property value | Applies to secondary market purchases |
| Notary Fees | 0.5-2% of property value | Capped by law, decreases for higher values |
How much money do I actually need as a minimum down payment to buy a property in Poland?
The minimum down payment for buying property in Poland is typically 10% of the property value for Polish citizens, but foreign buyers face stricter requirements.
Most Polish banks require foreign buyers to put down at least 20% of the property's purchase price to access favorable loan conditions and a wider selection of lending institutions. This higher requirement reflects the increased risk banks perceive when lending to non-residents.
Some banks may demand even more from foreign buyers, particularly those without Polish residence permits or stable local income. Non-residents or buyers with additional risk factors might face down payment requirements of 30-40% of the property value.
Special government programs for first-time homebuyers can occasionally allow for zero down payments, but these programs are typically limited to Polish citizens and permanent residents.
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Can foreigners get a mortgage in Poland or do I need to pay fully in cash?
Foreigners can absolutely get mortgages in Poland, though the process involves more stringent requirements compared to Polish citizens.
To qualify for a Polish mortgage as a foreigner, you'll need a PESEL number (Polish national identification number), documented income, and in most cases, a valid Polish residence permit. Banks strongly prefer applicants whose income is in Polish zloty (PLN) or at least in stable foreign currencies like the Euro.
The income must be demonstrably regular and stable, with banks requiring proof of employment or business income. Self-employed foreigners face additional scrutiny, often needing their business to be registered in Poland to qualify for financing.
While paying fully in cash isn't mandatory, it does offer significant advantages including faster transaction completion, stronger negotiating position, and freedom from bank lending requirements and delays.
Cash buyers can often complete property purchases in 1-3 weeks, compared to 1-2 months for mortgage-financed purchases.
What percentage of the property price will Polish banks typically finance for a foreign buyer?
Polish banks typically finance up to 80% of the property's value for foreign buyers, meaning you'll need to provide a 20% down payment.
This 80% loan-to-value (LTV) ratio is the standard offering for qualified foreign applicants who meet all the bank's requirements including income verification, credit history, and residency status.
Some banks may offer up to 90% LTV in exceptional cases, but this requires additional low down payment insurance and much stricter credit requirements. The higher financing percentage often comes with increased interest rates and more extensive documentation requirements.
Banks evaluate each foreign buyer's application individually, considering factors like income stability, employment type, residency status, and overall financial profile when determining the maximum financing percentage.
The actual percentage you qualify for depends on your specific financial situation and the bank's current lending policies.
What kind of proof of income or employment do Polish banks usually ask for before approving a loan?
Polish banks require comprehensive income documentation from foreign mortgage applicants, with specific requirements varying by employment type and income source.
| Employment Type | Required Documentation | Additional Requirements |
|---|---|---|
| Polish Employment | Employment certificate, tax returns (PIT), bank statements | Indefinite contract preferred, 3-12 months of salary transfers |
| EU Employment | Employer certificate, tax documents, bank statements | Income in stable currency, regular transfers to Polish account |
| Self-Employed (Poland) | Business registration, financial statements, tax declarations | Business must be registered in Poland, minimum 2 years operation |
| Foreign Self-Employed | Business documents, tax returns, financial statements | Translation required, notarized documents, limited acceptance |
| Mixed Income Sources | All relevant documents for each income stream | Banks evaluate total income stability and predictability |
Do I need to show my credit history in Poland, or will they accept documents from my home country?
Polish banks will check your credit history in Poland through the BIK (Credit Information Bureau) system and typically also request credit histories from your home country or any country where you earn income.
If you're new to Poland and don't have a Polish credit history yet, banks will rely heavily on your foreign credit reports to assess your creditworthiness. You'll need to provide official credit reports from your home country, properly translated into Polish and notarized.
A clean credit history with no recent arrears, defaults, or bankruptcies is essential for mortgage approval. Banks are particularly strict about any negative marks within the last 2-3 years, which can significantly impact your chances of approval or increase down payment requirements.
Even minor credit issues in your home country can affect your Polish mortgage application, so it's important to resolve any outstanding credit problems before applying.
Banks may also consider your overall financial behavior, including existing loans, credit card usage, and payment patterns when evaluating your creditworthiness.
How high are the typical mortgage interest rates right now in Poland?
As of September 2025, mortgage interest rates in Poland range from approximately 7.3% for variable rates to just under 8% for standard fixed rates.
These rates remain elevated compared to the European Union average but are expected to gradually decrease as the Polish central bank implements projected base rate cuts through 2026.
Foreign buyers may face slightly higher interest rates than Polish citizens, with premiums of 0.5-1% above standard rates depending on their risk profile, residency status, and income source.
Fixed-rate mortgages typically carry higher interest rates than variable-rate options, but provide payment stability over the loan term. Most Polish banks offer both options, though terms and availability may vary for foreign applicants.
The exact rate you'll qualify for depends on factors including your down payment size, credit history, income stability, and the specific bank's current pricing policies.
What are the average property prices per square meter in the cities I'm considering, like Warsaw, Kraków, or Gdańsk?
Property prices per square meter in Poland's major cities vary significantly, with Warsaw commanding the highest prices followed by Kraków and Gdańsk.
| City | Average Price per sqm (PLN) | Premium Districts (PLN) |
|---|---|---|
| Warsaw | 15,000-18,000 | Up to 25,000+ in central areas |
| Kraków | 14,600-17,000 | Up to 20,000+ in Old Town/center |
| Gdańsk | 13,000-16,800 | Up to 19,000+ near the coast |
| Wrocław | 12,000-15,000 | Up to 18,000+ in central districts |
| Poznań | 11,000-14,000 | Up to 17,000+ in premium areas |
How much cash should I plan for closing costs, taxes, and notary fees in Poland?
You should budget 3-5% of the property's purchase price for closing costs, taxes, and notary fees when buying property in Poland.
The property transfer tax (PCC) is 2% of the property value and applies to all secondary market purchases. This tax is paid by the buyer and represents the largest single closing cost component.
Notary fees range from 0.5-2% of the property value, with fees capped by law and decreasing as a percentage for higher-value properties. The notary handles the legal transfer process and ensures all documentation is properly executed.
Additional costs include land registry fees of approximately 200-300 PLN, legal review fees, and document translation costs which can total several thousand PLN depending on the complexity of your transaction.
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Is it true that some types of properties, like land near borders or agricultural land, can only be bought with special permits?
Yes, certain types of properties in Poland require special permits for foreign buyers, particularly land near borders and agricultural properties.
Foreigners can freely purchase apartments and residential buildings without special permits, but agricultural land, forest land, and properties in border zones typically require approval from the Ministry of Internal Affairs.
Even European Union and European Economic Area citizens need permits for agricultural land purchases and properties in designated border zones, which include much of Poland's coastline near Gdańsk and areas along international borders.
The permit process can take several months and involves demonstrating legitimate reasons for the purchase, financial capability, and sometimes residency requirements.
Non-EU citizens face even stricter requirements and may be prohibited from purchasing certain types of land entirely, making apartment and residential property purchases the most straightforward option for most foreign buyers.
How long does the mortgage approval process usually take in Poland, from application to receiving funds?
The mortgage approval process in Poland typically takes 2-3 weeks for well-prepared foreign applicants, though 4-6 weeks is more common in practice.
The timeline can extend longer if additional documentation is required, which often happens with foreign applicants who need document translations, income verification from abroad, or additional credit checks.
Banks need time to verify foreign income sources, validate international credit histories, and ensure all documentation meets Polish regulatory requirements, which can add complexity to the approval process.
Once approved, fund disbursement usually occurs quickly, often within a few days of signing the final loan agreement and completing the notarial property transfer.
In contrast, cash purchases can complete the entire transaction in just 1-3 weeks since there's no bank approval process, making cash transactions significantly faster for time-sensitive purchases.
What is the minimum monthly income requirement Polish banks expect for someone taking a mortgage?
Polish banks typically use a rough benchmark where every 1,500 PLN of net monthly income supports approximately 100,000 PLN in borrowing capacity.
For a single borrower with no existing debts, most banks require a minimum net monthly income of 3,000-4,000 PLN to qualify for even a small mortgage loan.
The exact income requirement depends on several factors including the loan amount, number of dependents, existing debt obligations, and the specific bank's lending criteria.
Banks also evaluate income stability and source, with permanent employment contracts or established business income receiving more favorable treatment than temporary or variable income sources.
Foreign applicants may face higher income requirements than Polish citizens, with some banks requiring 20-30% higher income levels to compensate for perceived additional risks.
If I decide to buy fully in cash, how much faster and easier will the purchase process be compared to financing?
Cash purchases in Poland are significantly faster and simpler than mortgage-financed transactions, with completion possible in as little as 1-3 weeks compared to 1-2 months for financed purchases.
Cash buyers avoid the entire bank approval process, including income verification, property valuation, credit checks, and loan documentation, which eliminates the most time-consuming part of the transaction.
The process becomes primarily about due diligence, contract negotiation, and notarial procedures, all of which can move quickly when both parties are motivated and prepared.
Cash offers also provide substantial negotiating leverage, as sellers prefer the certainty and speed of cash transactions over the potential complications and delays of mortgage-dependent sales.
It's something we develop in our Poland property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Poland versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Foreign buyers in Poland should prepare for a minimum 20% down payment plus 3-5% in closing costs, totaling around 25% of the property value in cash requirements.
While mortgages are available to qualified foreign buyers, cash purchases offer significant advantages in speed, negotiating power, and transaction simplicity in the Polish real estate market.
Sources
- InvestRopa - Poland Real Estate for Foreigners
- MZ Finanse - Mortgage Requirements for Foreigners
- Harveo Finance - Complete Mortgage Guide
- Progress Holding - Mortgage Guide 2025
- Global Property Guide - Poland Buying Guide
- Jacob Adam - Mortgage Guide for Foreigners
- Mortgage Blog - Market Update 2025
- The Global Economy - Poland Mortgage Rates
- Poland Insight - Housing Market Trends 2025
- Dudkowiak Law - Property Purchase Guide