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
Choosing between Poland and Czech Republic for property investment requires careful analysis of pricing, yields, and market conditions. Both Central European markets offer opportunities for foreign investors, but with distinct advantages and challenges that can significantly impact your investment returns.
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.
Poland generally offers lower purchase prices and higher rental yields, making it more attractive for investors seeking better returns and affordability.
Czech Republic, particularly Prague, commands premium prices but faces affordability constraints that may limit future growth potential.
| Factor | Poland (Warsaw/Krakow) | Czech Republic (Prague/Brno) |
|---|---|---|
| Average Price per sqm | €3,881 - €3,900 | €3,307 - €5,352 |
| Rental Yield | 3.7% - 4.2% | 2.9% - 4.0% |
| Foreign Ownership | Easy for apartments | Very easy for all properties |
| Transfer Tax | 2% (secondary market) | 0% (abolished 2020) |
| Financing for Foreigners | 70-80% LTV (EU citizens) | 80% LTV (EU), 50-70% (non-EU) |
| Resale Timeline | 3-7 months | 2-6 months |
| 5-Year Appreciation Forecast | 15-25% | 20-30% (Prague), 10-20% (Brno) |
How much does it cost per square meter to buy an apartment in Poland compared to Czech Republic?
Poland offers significantly lower apartment prices per square meter compared to Czech Republic's major cities.
Warsaw apartments cost approximately €3,881 per square meter as of September 2025, while Krakow properties average €3,900 per square meter. These prices represent excellent value for Central European capital and cultural hub locations.
Prague commands premium pricing at €5,352 per square meter for older units, with new developments reaching €6,848 per square meter. Brno offers more affordable options starting from €3,307 per square meter, though prime locations and new constructions cost considerably more.
The price difference means you can purchase approximately 40% more space in Warsaw compared to Prague for the same budget. This pricing advantage makes Poland particularly attractive for investors seeking larger properties or better entry points into the Central European market.
It's something we develop in our Poland property pack.
What are the average rental yields in major cities like Warsaw, Krakow, Prague, and Brno?
Polish cities generally deliver higher rental yields than their Czech counterparts, offering better returns for property investors.
Warsaw provides gross rental yields of approximately 3.7% in the city center, while Krakow performs even better with yields ranging from 3.8% to 4.2%. These returns reflect strong rental demand from young professionals, students, and expatriates in both cities.
Prague offers gross yields between 3.5% to 4%, though net yields drop significantly after accounting for higher maintenance costs and taxes. Brno underperforms with gross yields around 2.9%, making it less attractive for yield-focused investors.
The higher yields in Polish cities stem from lower purchase prices combined with competitive rental rates. Warsaw and Krakow benefit from growing tech sectors, universities, and corporate headquarters that drive consistent rental demand.
How easy is it for foreigners to buy property in each country?
Both countries welcome foreign property buyers, but Czech Republic offers slightly simpler procedures for all nationalities.
EU citizens can freely purchase apartments in Poland without restrictions or permits. Non-EU foreigners face permit requirements for land purchases but can buy apartments without complications. The process involves public registry verification and notarial services.
Czech Republic allows all foreigners, regardless of nationality, to purchase apartments and houses without restrictions. No residency requirements or special permits apply to residential property purchases, making it extremely accessible for international investors.
Both countries require similar documentation including proof of funds, identity verification, and legal representation. The main difference lies in Poland's land purchase restrictions for non-EU citizens, which doesn't affect apartment investments.
What are the main taxes and ongoing costs for property owners in Poland versus Czech Republic?
| Tax/Cost Type | Poland | Czech Republic |
|---|---|---|
| Property Transfer Tax | 2% (secondary market), 0% (new builds) | 0% (abolished in 2020) |
| Annual Property Tax | Under €200/year for apartments | €40-€120/year |
| Rental Income Tax | 8.5%-12.5% (flat rate option) | 15% plus social/health contributions |
| Notary Fees | 0.5%-2% of property value | €400-€1,200 or 0.2%-2% |
| Annual Maintenance | €400-€800 for 60 sqm unit | €500-€900 for 60 sqm unit |
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How stable have property prices been over the past 10 years in both countries?
Both countries experienced substantial price growth over the past decade, with Czech Republic showing more aggressive recent increases.
Poland saw property prices double in Warsaw and Krakow over ten years, with particularly strong growth from 2015-2022. Growth has moderated since 2023, with market stabilization expected through 2025 as supply catches up with demand.
Czech Republic experienced steady double-digit increases throughout the period, with Prague and Brno prices rising 15-25% in 2024 alone. This rapid appreciation raises affordability concerns and potential for market correction.
Polish market growth appears more sustainable due to gradual increases aligned with economic fundamentals. Czech Republic's recent price acceleration may indicate overheating, particularly in Prague's premium segments.
How much financing can foreign investors get from local banks in Poland versus Czech Republic?
Both countries offer mortgage financing to foreign investors, with EU citizens receiving preferential treatment in both markets.
Polish banks typically offer 70-80% loan-to-value ratios for EU residents with established income. Non-EU investors face stricter criteria and lower LTV ratios, usually requiring proof of local income or extended residency.
Czech banks provide up to 80% LTV for EU nationals with acceptable income documentation. Non-EU buyers encounter more paperwork requirements and often face caps at 50-70% LTV, with preference for applicants showing local income sources.
Both markets require substantial down payments from foreign investors. Pre-approval processes typically take 4-8 weeks, with banks preferring applicants who demonstrate stable employment and income in their home countries.
What are the closing costs and legal fees when purchasing property in each country?
Total transaction costs range similarly in both countries, typically consuming 2-5% of the purchase price.
Polish property purchases incur total costs of 2-5% including notary fees, land registry charges, legal representation, and real estate agency commissions. The 2% transfer tax on secondary market properties represents the largest single expense.
Czech Republic transactions cost 3-5% of the sale price, covering legal fees, notary services, registration costs, and agency commissions. The absence of transfer tax since 2020 helps offset other expenses.
Both countries require legal representation throughout the purchase process. Legal fees typically range from €1,000-€3,000 depending on property value and transaction complexity.
How long does it typically take to resell a property in Poland compared to Czech Republic?
Czech Republic generally offers faster property sales, particularly in major urban centers.
Polish properties in Warsaw and Krakow typically sell within 3-7 months under normal market conditions. Rural and secondary city properties require longer marketing periods, often 6-12 months for successful sales.
Czech properties in Prague and Brno commonly sell within 2-6 months due to high demand and limited supply. Prague's competitive market enables particularly quick sales for well-priced properties in desirable locations.
Market liquidity depends heavily on location, property type, and pricing strategy. Both countries benefit from active real estate agent networks and online marketing platforms that facilitate efficient property transactions.
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.
How do property management and maintenance costs compare between the two markets?
Czech Republic typically requires higher annual maintenance expenses, while management fees remain comparable between both countries.
Polish properties averaging 60 square meters cost €400-€700 annually for maintenance, utilities, and building fees. Property management companies charge 8-10% of monthly rental income for full-service management.
Czech properties of similar size require €500-€900 yearly for maintenance and building expenses. Management fees range from 7-10% of rental income, with Prague offering more competitive management company options.
Higher Czech maintenance costs reflect stricter building standards and more expensive local services. Both markets offer professional property management services essential for foreign investors managing rental properties remotely.
What are the main risks of owning property in Poland versus Czech Republic?
Both markets present manageable risks, but with different focus areas for investor concern.
Poland's primary risks include fluctuating rental demand in secondary cities, potential tax policy changes affecting property investment, and permit requirements for non-EU land purchases. Rising maintenance costs and energy efficiency requirements pose additional considerations.
Czech Republic faces price overheating risks, particularly in Prague where affordability constraints may limit future buyer pools. Government initiatives to curb speculative buying could impact investor returns, while strict documentation requirements create compliance challenges.
Both countries benefit from EU membership providing legal framework stability and investor protections. Economic downturns typically affect rental markets more than property values in established urban centers.
It's something we develop in our Poland property pack.
How strong is the demand for short-term rentals like Airbnb in both countries' major cities?
Both countries show robust short-term rental demand, though facing increasing regulatory scrutiny in major tourist centers.
Warsaw and Krakow demonstrate strong Airbnb performance, especially in central locations near historical attractions and business districts. However, local authorities are implementing tighter regulations in some districts to balance tourism with resident housing needs.
Prague ranks among Europe's top Airbnb destinations with exceptional tourist demand year-round. Brno shows growing short-term rental potential but with more seasonal variation. New local restrictions are being considered to address housing shortage concerns.
Both markets benefit from growing tourism and business travel. Investors should monitor regulatory changes that could impact short-term rental operations and profitability in prime locations.
What is the expected capital appreciation in the next 5-10 years for residential property in Poland versus Czech Republic?
Czech Republic projects higher appreciation potential but with greater volatility risk compared to Poland's more stable growth outlook.
Poland expects 15-25% cumulative growth over five years in Warsaw and Krakow, with more moderate appreciation in secondary cities. Long-term outlook remains stable, supported by economic growth and infrastructure development.
Prague forecasts 20-30% cumulative appreciation over five years, though affordability concerns may constrain future growth. Brno expects 10-20% growth depending on supply development and economic conditions.
Polish market growth appears more sustainable based on economic fundamentals and controlled supply increases. Czech Republic's higher appreciation projections carry greater risk of market correction if economic conditions deteriorate.
It's something we develop in our Poland property pack.
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.
Poland emerges as the more attractive option for most property investors, offering better rental yields, lower entry costs, and more sustainable growth prospects.
Czech Republic suits investors seeking premium markets and higher appreciation potential, but requires larger capital commitments and tolerance for greater market volatility.
Sources
- Global Property Guide - Poland Price History
- Global Property Guide - Square Meter Prices
- Portugal Business News - Cheapest European Cities
- Deloitte Czech Republic Property Index
- InvestRopa - Prague Apartment Prices
- Prague Daily - Czech Republic Price Index
- Numbeo - European Property Investment Rankings
- InvestRopa - Poland Real Estate Market
- InvestRopa - Prague Rental Market
- Global Property Guide - Czech Republic Rent Yields