Authored by the expert who managed and guided the team behind the Poland Property Pack
Everything you need to know before buying real estate is included in our Poland Property Pack
Are you considering investing in Poland’s real estate market? What are the legal steps, tax implications, and cultural differences you need to understand before taking the plunge? What challenges do foreign investors typically face, and how can you overcome them?
These are the questions we hear most often from foreign investors because we’re actively connected to this market. We’ve spent time working with local agents, developers, and investors, so we know what works—and what doesn’t. That’s why we’ve written this article: to provide a clear guide that answers the questions we get asked daily.
Our goal is to help you, as a foreigner, to navigate the property buying process with confidence. If you think there’s something we missed or want more details, let us know (please do!). Your input helps us refine and improve our advice for everyone.
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1) Non-EU foreigners need a special permit to buy farmland in Poland, complicating rural property investments
If you're thinking about buying agricultural land in Poland and you're from outside the EU, you'll need a special permit.
This requirement is part of the Polish Act on Acquisition of Real Estate by Foreigners, which aims to protect local agricultural interests and curb speculative buying. The process isn't simple; it involves meeting specific criteria, including residency requirements, making it a bit of a maze for potential investors.
Real estate experts in Poland often point out that these rules can be a real headache for some investors. Non-EU citizens face more hurdles compared to their EU counterparts, who have a smoother path when it comes to buying property.
For non-EU investors, the regulatory landscape is a bit like navigating a complex puzzle. This complexity can sometimes deter foreign investment in Poland's rural areas, as reported by various sources.
While EU citizens have fewer hoops to jump through, non-EU investors must deal with a more challenging set of regulations. This difference in treatment can impact investment plans for those looking to invest in Polish countryside properties.
Sources: NIK, UNCTAD, Agroberichten Buitenland
2) Work with a local financial advisor in Poland, as obtaining a mortgage can be complex for foreigners
Buying property in Poland as a foreigner can be a bit tricky.
For starters, only a few banks like Alior and Pekao SA offer mortgages in foreign currencies, which limits your options. Plus, foreigners often face higher interest rates than locals, making loans more expensive. This is why having a local financial advisor can be a game-changer.
When it comes to paperwork, the documentation requirements are quite strict. You’ll need to show proof of income, employment, and identity, which can be tough if you're not familiar with the Polish banking system. And if you don’t speak Polish, language barriers can make things even more complicated, as contracts are usually in Polish and require a sworn translator.
Legal hurdles are another issue, especially for non-EU citizens who face restrictions on property ownership. These challenges make the mortgage process in Poland more complex and time-consuming. Reports from financial institutions highlight the need for specialized knowledge to navigate these waters.
Many expats who’ve successfully bought property in Poland say that local financial advisors were crucial in their journey. Real estate agencies also recommend seeking local help to avoid common mistakes. Online forums and expat communities are full of stories that stress the importance of local advice.
Sources: Credit for Foreigners, Housing Critical, Globe Newswire
We have made this infographic to give you a quick and clear snapshot of the property market in Poland. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Invest in properties near new infrastructure projects in Poland to maximize profits, as the country is rapidly expanding its transportation networks
Investing in properties near new infrastructure projects in Poland can be a smart move for maximizing profits.
Poland is on a fast track with its transportation network developments, which are boosting property values. The government has earmarked over $75 billion for railway upgrades from 2021 to 2030, focusing on modernizing rail lines and enhancing city connectivity. This massive investment is not just about trains; it's about making cities more accessible and attractive for living and business.
Take the Solidarity Transport Hub, for example, which is set to be completed by 2028. This project aims to integrate various transport modes, making travel smoother and faster. Such developments make nearby areas more desirable, leading to increased demand for properties. As demand rises, so do property values, offering a golden opportunity for investors to see substantial returns.
Looking back, historical data shows that major infrastructure projects in Poland have consistently led to significant property value increases. The expansion of the rail network over the past decade has made areas along these lines more appealing, pushing property prices up. Real estate experts are confident that this trend will continue, especially in areas with upcoming projects.
For those considering an investment, it's worth noting that areas near these new infrastructure projects are likely to see higher property values due to increased demand. This is not just speculation; it's a pattern observed over the years. As Poland continues to develop its transportation networks, the potential for property value growth remains strong.
In essence, investing in properties near these projects is not just about buying real estate; it's about tapping into a growing market. With Poland's commitment to improving its infrastructure, the opportunities for maximizing profits are substantial. Keep an eye on these developments, as they can be a game-changer for property investors.
Sources: Trade.gov, Railway Pro, Mordor Intelligence
4) Consider short-term rentals in tourist-heavy cities like Kraków and Gdańsk for high returns, catering to international visitors
Thinking about investing in property? Short-term rentals in Kraków and Gdańsk are booming thanks to a surge in international tourists.
In 2023, Kraków and the Malopolska region saw a 174% jump in foreign visitors compared to the previous year. This influx means more travelers are hunting for places to stay, making short-term rentals a hot commodity.
Gdańsk is particularly thriving, with short-term rentals boasting a median occupancy rate of 60%. This translates to properties being booked for about 219 nights annually, which is quite a feat.
On average, the daily rate for rentals in Gdańsk is €84, outpacing what long-term leases typically offer. This higher rate is a key factor in the profitability of short-term rentals here.
Platforms like Airbnb are also playing a big role. In 2024, Airbnb reported an 18% increase in nights booked in Poland, thanks to their expanding services and improved quality standards.
These enhancements have led to more positive reviews and higher occupancy rates, creating a favorable environment for property owners in cities like Kraków and Gdańsk.
Sources: Kraków Convention Bureau, Airbtics, BNB News
5) Understand Poland’s “perpetual usufruct” system, where you lease land from the government for up to 99 years instead of owning it
In Poland, there's a unique system called "perpetual usufruct" that you should know about.
This system, introduced during communist times, means that when you buy a property, you might not actually own the land it sits on. Instead, you lease it from the government for up to 99 years. While you can use the land and even rent or sell the property, you don't own the land itself. You own the buildings on it, but transferring ownership of the land requires transferring the perpetual usufruct right too.
In 2023, new regulations were introduced to phase out perpetual usufruct, aiming to simplify property ownership. However, the transition isn't straightforward. Property owners need to act quickly, as they have only 12 months to request a change from perpetual usufruct to full ownership. This can be challenging for some, adding a layer of complexity to property transactions.
In 2023, new regulations were introduced to phase out perpetual usufruct, aiming to simplify property ownership. However, the transition isn't straightforward. Property owners need to act quickly, as they have only 12 months to request a change from perpetual usufruct to full ownership. This can be challenging for some, adding a layer of complexity to property transactions.
In 2023, new regulations were introduced to phase out perpetual usufruct, aiming to simplify property ownership. However, the transition isn't straightforward. Property owners need to act quickly, as they have only 12 months to request a change from perpetual usufruct to full ownership. This can be challenging for some, adding a layer of complexity to property transactions.
In 2023, new regulations were introduced to phase out perpetual usufruct, aiming to simplify property ownership. However, the transition isn't straightforward. Property owners need to act quickly, as they have only 12 months to request a change from perpetual usufruct to full ownership. This can be challenging for some, adding a layer of complexity to property transactions.
Sources: GGI Global Alliance, Poland Property Guide, Andersen
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6) Consider properties with conversion potential into multiple units to boost rental yield and maximize investment
Investing in properties that can be converted into multiple units is a smart move because it can significantly boost your rental income.
In Poland, especially in cities like Gdańsk, multi-unit properties offer higher rental yields compared to single-unit ones. For instance, a 3-bedroom apartment in Gdańsk can yield about 7.62%, while a studio might only bring in 5.69%. This means that by converting a property into multiple units, you can potentially earn more from rent.
The demand for rental units in Poland's urban areas is consistently high, driven by a housing shortage and rising rental rates. Even with new constructions, demand still outpaces supply, making it a favorable market for landlords. This high demand ensures that converted properties can be rented out quickly, maximizing occupancy and rental income.
There's a growing trend of converting older buildings into modern, multi-use spaces. This is partly due to government incentives that simplify the conversion process and the need to meet environmental standards. By investing in such conversions, you not only increase rental yield but also contribute to urban development and sustainability.
Moreover, the Polish government is actively encouraging these conversions, offering incentives that make the process easier and more profitable. This means that not only can you increase your rental income, but you can also benefit from financial support and streamlined regulations.
In the long run, investing in properties with conversion potential can be a lucrative strategy. It allows you to tap into a market with high demand and limited supply, ensuring a steady stream of rental income.
Sources: Global Property Guide, FX Magazine, Origin Investments
In this video, we can see that 'Poland House Build Update' provides insights into property development and potential for converting properties into multiple units to increase rental yields.
7) Focus on university towns in Poland for strong rental income, as student demand boosts the rental market
The rental market in Poland is thriving, especially in bustling university towns.
In cities like Warsaw, Kraków, and Wrocław, student housing projects often exceed 97% occupancy. This high demand is driven by the influx of students, making these areas prime spots for rental investments.
With the student population expected to hit 1.4 million by the decade's end, the need for housing is only going to grow. This trend makes university towns a lucrative option for property buyers looking to tap into the rental market.
Investors are drawn to the attractive rental yields in major Polish cities. For example, Warsaw offers a rental yield of 5.55%, while Kraków and Rzeszów boast yields of 4.87% and 6.21%, respectively.
These figures highlight the potential profitability of investing in these areas. University towns are not just educational hubs but also investment hotspots, thanks to the steady demand for student accommodation.
For those considering property investment in Poland, the strong rental market in university towns offers a promising opportunity to secure consistent rental income.
Sources: JLL, GSL Global, Varso Invest
8) Consider Poland for stable long-term investments, as its real estate market is less volatile than many Western markets
The Polish real estate market is known for its remarkable stability compared to many Western markets.
Back in 2008, when the global financial crisis hit hard, Polish property prices only dipped by about 10%, while many Western countries saw their property values plummet. This resilience is a testament to the market's strength and reliability.
Over the past decade, Poland's residential market has enjoyed a steady annual price growth of 5-7%. This growth is largely due to the conservative lending practices of Polish banks, which create a stable financial environment for real estate investments.
Unlike many Western markets, Poland sees less speculative investment in real estate. This means there's a lower chance of sudden market downturns caused by speculative bubbles. The Polish housing market index consistently shows lower volatility compared to indices in countries like the UK or the US.
For those considering a property purchase in Poland, this stability offers a sense of security. The market's resilience and steady growth make it an attractive option for long-term investments.
With less volatility and a strong foundation, the Polish real estate market provides a reliable investment opportunity for those looking to buy property in the country.
Sources: Polish Real Estate Association, JLL, Polish Financial Supervision Authority
We made this infographic to show you how property prices in Poland compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Avoid properties with unclear zoning laws to prevent unexpected use or development restrictions
When buying property in Poland, understanding the zoning laws is crucial.
In cities like Warsaw, high-rise projects often face delays due to sudden zoning law changes. This means even big developments can hit roadblocks if the rules aren't clear. The 2023 zoning reform requires municipalities to adopt general plans by 2025, and missing this deadline could freeze development projects, impacting property owners and investors.
Currently, less than 40% of Poland's land is covered by zoning plans, leaving many properties in a gray area. This uncertainty can lead to financial setbacks for investors who depend on specific zoning decisions for their projects. The complexity of the system often results in delays and legal disputes, making it a challenging landscape for investors.
For those looking to invest, it's essential to be aware of these potential pitfalls. The Polish government's zoning system has been criticized for its complexity, which has led to prolonged legal battles between developers and local authorities. This can be a significant hurdle for anyone looking to develop or invest in property.
Investors should be cautious and perhaps seek local advice to navigate these challenges. The lack of clear zoning laws can lead to unexpected restrictions, which might not only delay projects but also affect financial outcomes. Understanding the local zoning landscape is key to making informed property decisions.
Sources: Polish Land-Use System and Challenges Brought by Its Recent Major Overhaul, How to Determine Land Development Conditions, Poland Amends Its Zoning Act
10) Focus on eco-friendly and energy-efficient homes in Poland, as demand is rising and can attract more buyers or tenants
Understanding local market trends in Poland can give you a real advantage, especially with the rising demand for eco-friendly and energy-efficient homes.
In recent years, there's been a noticeable shift towards sustainable living, with over 154 new buildings certified as green in just one year. This trend highlights a growing interest in eco-friendly options among buyers and tenants.
The push for green building products is largely driven by stricter energy efficiency regulations. Since 2020, new buildings in Poland must have near-zero emissions, significantly cutting energy usage compared to older structures.
Consumer interest in sustainability is on the rise. In a 2024 survey, nearly half of the respondents expressed interest in sustainable living. This shift is evident as many real estate listings now feature green data fields to showcase eco-friendly attributes.
Adopting green technologies and materials is becoming more common, reflecting a broader societal move towards eco-conscious living. This trend is not just about regulations but also about meeting the growing consumer demand for sustainable options.
By understanding these trends, you can position yourself to attract more buyers or tenants who value sustainability. Eco-friendly homes are increasingly appealing in the Polish market, offering a competitive edge.
Sources: Holcim, Export.gov, NAR
11) Consider investing in modern developments in Poland, as buyers often prefer new builds over older properties
Many Polish buyers prefer new builds over older properties, making modern developments a lucrative investment.
In 2023, the demand for new residential units in Poland's major cities like Warsaw and Kraków saw a significant surge. A total of 57,500 units were sold, marking a 65% rise from the previous year. This trend highlights a strong market shift towards new constructions.
Why the preference? New builds come with modern amenities and energy efficiency, which are highly appealing. The growing middle class in Poland is on the lookout for high-quality homes with innovative designs. Younger buyers, in particular, are drawn to these modern housing options.
Real estate agencies have observed a noticeable trend towards new construction purchases. Developers are focusing on creating mixed-use developments, which combine residential, commercial, and recreational spaces. This caters to diverse consumer needs and adds to the appeal of new builds.
Another reason to consider new builds is their investment potential. New constructions often appreciate at higher rates, making them attractive for investors. This appreciation is a key factor for those looking to maximize their returns.
Sources: Global Property Guide, Statista, Chambers Practice Guides
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12) Take advantage of Poland’s low property taxes to minimize ongoing costs as an investor
In Poland, property taxes are among the lowest in Europe, making it an attractive option for investors.
For 2024, the property tax rate in Poland was set at 0.95%, which is quite competitive compared to Germany's range of 0.26% to 1.0% and Greece's 0.025% to 0.35%. This low rate can significantly reduce the ongoing costs of property ownership.
The Polish Ministry of Finance has capped the maximum real estate tax rates, with residential properties not exceeding PLN 1.15 per square meter. Even with a slight increase from previous years, this rate remains appealing for those looking to invest in property.
Experts in finance and real estate frequently point out that Poland's low property taxes are a major draw for investors. This is especially true when considering the country's economic growth and its increasing appeal to foreign investors.
Reports from real estate investment firms highlight that Poland's economic landscape is becoming more attractive to international buyers, thanks in part to these favorable tax conditions.
Sources: The Luxury Playbook, KPMG, Okeask
13) Budget for higher-than-expected notary fees when buying property in Poland, as their involvement is often required
When buying property in Poland, you'll need a notary to make the deal official.
Polish law requires a notarial deed for property transactions, ensuring everything is legally binding and properly registered. This step is unavoidable, even if it adds to your costs.
Notary fees in Poland might surprise you. They're based on the property's value, and if your property is worth over PLN 2,000,000, the fee could be up to PLN 6,770 plus 0.25% of the surplus above that amount, but not more than PLN 10,000. Unlike some European countries, these fees are separate from the purchase price.
There are also unexpected costs with notary services. These can include travel fees if the notary comes to you, fees for document copies, and certification fees for verifying signatures. These extras can add up quickly, so it's wise to budget for them from the start.
In Poland, notaries play a crucial role in property transactions, and their involvement is more than just a formality. They ensure that all legal aspects are covered, which can be a relief for buyers unfamiliar with Polish property laws. Understanding these costs upfront can help you avoid surprises later.
So, when planning your property purchase in Poland, remember to factor in these notary fees and additional costs. Being prepared financially will make the process smoother and less stressful.
Sources: Notarial Fee - Notary Office Jarosław Pluta, Notarial fees - Kancelaria notarialna Jan Borski, Notary fees - what is it and what is its cost? - Freedom Nieruchomości
14) Ensure renovation plans comply with strict building codes in Polish cities to avoid fines or delays
Polish cities now have strict building codes, a shift from their past of rapid urban development with fewer restrictions.
With the introduction of the new Spatial Planning Law in September 2023, municipalities now follow a General Master Plan. This plan outlines key development parameters like maximum building height and minimum green area ratio, which developers must follow. If you're planning to build or renovate, make sure your plans align with these rules to avoid any fines or delays.
Looking ahead, the amended construction law, effective April 2024, will require greater distances between buildings. This change aims to improve privacy and living conditions, making neighborhoods more pleasant and less cramped.
Developers are also now required to include green spaces and playgrounds in larger residential projects. This reflects a growing trend towards sustainable urban planning, moving away from the "concretitis" that once dominated Polish cities.
These changes are part of a broader effort to create more livable urban environments. The focus is on balancing development with nature, ensuring that cities are not just concrete jungles but places where people can enjoy green spaces.
So, if you're considering buying property in Poland, it's essential to understand these new regulations. They not only affect how you can develop your property but also enhance the overall quality of life in Polish cities.
Sources: Notes from Poland, Penteris
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Poland. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Consider properties adaptable for co-living spaces in major cities, as they appeal to young professionals and students
The demand for affordable housing in Poland is growing rapidly.
In 2023, the housing market faced a dip in the number of new homes being built, leading to a shortage of affordable options. This has made it tough for people to find traditional housing, especially in bustling cities like Warsaw and Krakow, where prices for new properties have shot up.
Meanwhile, more young professionals and students are flocking to urban areas, with cities like Warsaw and Łódź seeing a rise in small apartment living. These young folks are on the hunt for affordable and flexible places to live, which is where co-living spaces come into the picture.
Co-living spaces are becoming a hit because they offer a solution to the housing crunch by providing affordable and flexible living options. In cities like Warsaw and Krakow, these spaces are popping up as a response to the need for communal living. They’re being praised as innovative solutions, offering flexibility and a strong sense of community.
Surveys reveal that millennials and Gen Z are all about community and flexible living, which is fueling the growth of co-living spaces. These places offer shared areas and amenities at a lower cost, making them a hot choice for young professionals and students. Plus, social media is buzzing about co-living as a lifestyle, highlighting the perks of community and networking.
Sources: Dudkowiak, Notes from Poland, Property Forum, Green Ocean Property Management
16) Consider properties near parks or nature reserves in Poland, as buyers and renters value proximity to green spaces
Polish buyers and renters are increasingly drawn to properties near green spaces.
Urban projects like Łódź's Green Trails are a game-changer, showing how green spaces can boost quality of life. They cut down on smog, create fresh air corridors, and keep the air humid, making city living healthier and more appealing.
The real estate market is catching on, with properties near parks or nature reserves becoming hot commodities. In smaller cities, retail parks are driving this trend, as people crave homes with easy access to nature, reflecting a shift towards sustainability and well-being.
Łódź is a prime example, with its impressive 3,000 hectares of green spaces. This investment not only beautifies the city but also boosts residents' mental and physical health, making these areas a magnet for potential buyers and renters.
Living near nature isn't just about aesthetics; it's about a healthier lifestyle. These green areas are not just pretty to look at—they're vital for reducing stress and improving overall well-being.
As more people prioritize sustainability, properties near green spaces are becoming increasingly desirable. This trend is reshaping the real estate market, with a clear focus on integrating nature into urban living.
Sources: AIPH Green City Case Studies, Retail Park Report 2024
17) Avoid properties with unresolved restitution claims in Poland, as they can cause ownership legal disputes
When buying property in Poland, be cautious of unresolved restitution claims.
Back in 2023 and 2024, Poland had a tough time with property restitution due to vague laws and historical complexities. A 2024 law change shortened the time for claims, complicating cases involving Nazi-looted items. This legal maze can be a real headache for potential buyers.
These unresolved claims can really mess with property values. Real estate experts often warn that properties with restitution issues can lead to long legal battles and financial losses. Resolving these claims isn't just a hassle; it can take years and cost a lot.
Real estate surveys show that restitution claims are pretty common in property deals. They stress the need for thorough due diligence to dodge legal disputes and financial risks. It's like navigating a minefield, and you don't want to step on a legal bomb.
So, if you're eyeing a property, make sure to dig deep into its history. You don't want to end up in a courtroom instead of your new living room. It's all about being smart and cautious in a market where legal clarity is often lacking.
Sources: World Jewish Restitution Organization, Poland Weekly, Art and IP Law Firm
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18) Build strong relationships with Polish real estate agents for insider tips on upcoming developments
Buying property in the countryside can be a smart move, especially if you have the right connections.
Local real estate agents are like gold mines of information because they often have insider knowledge about upcoming developments. They're deeply involved in the community and know things that aren't always out in the open. For instance, they might be aware of new infrastructure projects before they're even announced. These projects can make certain areas more attractive, potentially boosting property values.
Having this kind of information gives you a leg up. You can make smarter decisions and maybe even snag a better deal. Imagine knowing about a new highway or shopping center before anyone else; it could change the game for your investment.
Another perk of working with local agents is their access to pre-market properties. They often know about homes that haven't hit the market yet, giving you exclusive opportunities. In a competitive market, this is a huge advantage.
Building a good relationship with a local agent can open doors to insights and opportunities you might not find on your own. They can guide you to hidden gems and help you navigate the buying process with ease.
So, if you're thinking about buying property in the countryside, consider teaming up with a local agent. Their insider knowledge and connections can be invaluable.
Sources: Finding Poland, Pewny Lokal, Chambers Practice Guides
19) Take advantage of Polish incentives for renovating historic properties to cut costs and boost property value
If you're thinking about buying a historic property in Poland, there's good news: the government offers financial support for renovations.
Thanks to increased funding, property owners can tap into resources to help with restoration costs. The Ministry of Culture and National Heritage has a program that specifically targets the preservation of historic buildings. This means you could get some serious help in maintaining the charm and value of your property.
Take Krakow, for example. Since 2006, the city has poured millions into conservation efforts, leading to the successful renovation of hundreds of historic buildings. This not only keeps the cultural heritage alive but also boosts the value of these properties. Many owners have already reaped the benefits, thanks to support from the Social Committee for the Restoration of Kraków’s Historical Monuments.
Renovating these properties isn't just about preserving history; it also has a positive economic impact. It creates jobs and boosts tourism, which is a big deal for local economies. Krakow's historic center, for instance, has undergone extensive restoration and now attracts millions of tourists each year, significantly contributing to the local economy.
The Polish government makes it easy for property owners to access these incentives by providing detailed information. This means you can easily find out what support is available and how to apply for it. These incentives can make a big difference in your renovation plans, reducing costs and increasing your property's value.
Sources: Castellan Estate, Krakow Heritage, Energy.europa.eu
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.