When you buy a property in Poland, there will be a number of upfront fees and ongoing costs, beyond mortgage costs, which you’ll need to take into account. To help you avoid any surprises we’ve put together a list of things you might need to think about when working out your budget.
In Poland you can buy a property direct from the seller or use an estate agent. In terms of fees, overwhelmingly, estate agents charge a percentage fee, which usually can be anywhere between 1,0% and 3.0%+VAT of the agreed price for the property.
You have to pay Civil Transaction Tax when you buy a property in the secondary market. This tax is 2% of the property value. You don’t pay this tax when you buy a property in the primary market.
In Poland the final contract between you and the seller must be signed in a presence of a notary, otherwise it is invalid. There is a legal maximum which a notary can charge and this is calculated on the value of the transaction based on the following schedule:
Purchase Price (PLN) |
Fees |
|---|---|
| above 3 000 to 10 000 | PLN 100 + 3% on the excess above 3 000 |
| above 10 000 to 30 000 | PLN 310 + 2% on the excess above 10 000 |
| above 30 000 to 60 000 | PLN 710 + 1% on the excess above 30 000 |
| above 60 000 to 1 000 000 | PLN 1010 + 0,4% on the excess above 60 000 |
| above 1 000 000 to 2 000 000 | PLN 4770 + 0,2% on the excess above 1 000 000 |
| above 2 000 000 | PLN 6770 + 0,25% on the excess above 2 000 000 (not more than PLN 10 000) |
Your property has to be registered with the competent Authorities (PLN 60). The cost of transferring the title is PLN 200.
The main components of utility bills are gas, electricity and water. The cost of these services will vary depending on the size of your property and how much they are used. It is a good idea to check with the previous owners or tenants how much they were spending on their utility bills each month to give you a rough idea of what you will pay.
Cost of home insurance will generally depend on factors such as the size of the property and how much cover you want for your possessions. It costs about 0,1% of the value (yearly).
If you live in a serviced apartment, you may have a regular service charge to pay. The cost of that service will vary depending on the building.
The amount you pay is based on where you live and the size of the property. In Warsaw it costs about 0,75 PLN/sqm (yearly).
The right of perpetual usufruct is peculiar to Poland and common form of title to land in cities (it should be considered somewhere between freehold ownership and a leasehold). Property owners with a right of perpetual usufruct will have to pay annual fees. This is calculated as a percentage of the value of the land and set by the State Treasury or the applicable local authorities.
The cost of that will vary depending on the place, building, seize of apartment, etc. Differences can be significant, for example:
When you buy a second-hand property you will usually need to count these cost. In the primary market in Poland, most of apartments are offered only in bare shell condition, where buyers are required to complete their own finishing work. Fully finished apartments are very rare but some developers offer an optional finishing service to property buyers.
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mariusz@mzfinanse.pl
+48 661 440 714
