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Being one of the first countries in the Soviet bloc
to toss off the Communist yolk, Poland was well on
the road to a more liberal economy with more participation
by foreign nationals than other Eastern European nations
were when the Iron Curtain fully collapsed. Foreign
nationals have been investing in many segments of
the Polish economy, including purchasing real estate
of different types in the country.
Many foreign nationals have realized significant profits
through the years by investing in real estate in Poland.
Indeed, the buying and selling of property in Poland over the course of the past two decades has been brisk.
Most industry experts who are watching the real estate
market in the Polish Republic now believe that the
buying and selling of real estate in Poland by foreign
nationals will increase even more over the course
of the coming decade. This will include activity by
foreign nationals in the commercial, industrial and
residential real estate markets in Poland
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As just mentioned, foreign nationals have been very active
in the Polish real estate market for the past two decades.
One area in which foreign nationals have been fairly heavily
involved is in investment real estate.
Since the Communist government in Poland was ousted, the
government of Poland has been active in its efforts to bring
foreign investment into that country. As a consequence,
the government has encouraged foreign nationals to put their
money into everything from commercial real estate enterprises
such as office buildings, apartment complexes and other
residential developments and even in the construction of
industrial properties in some of the major urban centers
in the country. The trend towards the involvement of foreign
nationals in the Polish investment real estate market is
expected to continue onward unabated according to analysts
considering the economy and property market in Poland.
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Residential
Real Estate in Poland - Single Family Properties |
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Trade by foreign nationals in single family residential
homes has been somewhat limited in the past couple of
decades. While foreign nationals have been found buying
single family homes in Poland, the demand by foreign
nationals for single family dwellings has not been the most
active part of the real estate market as far as foreigners
are concerned.
With that said, there have been some foreign nationals who
have family roots in Poland who have taken to buying a second
residence within the country. Many of these people are men
and women who had parents or grandparents driven from the
country during the Second World War or during the period
of time that Poland was part and parcel of the Soviet bloc.
There are many interesting and historic residential properties
in some of the smaller and more rural communities in Poland.
Some foreign nationals have taken to purchasing these properties.
These residences do provide solid retreats from the workaday
world and have been sought after by more well heeled foreign
nationals who enjoy the challenge of renovating and remodeling
real estate.
Some people from foreign countries have taken to buying
these larger residences in rural locales and have turned
them into inns which are being visited by foreign nationals
on holiday. These types of inns are sprouting up across
the country and are attracting more tourists into the country
each and every year. In addition, this type of real estate
investment has proven to be very profitable for foreign
nationals.
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Residential
Real Estate in Poland - Apartments |
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The residential real estate market in Poland, when it comes
to apartments and foreign nationals, has done brisk business
in the past twenty years. Foreign nationals have been found
snatching up apartments -- primarily in Polish urban centers
and resort venues -- for three primary reasons.
First of all, with the Communists out and a more open, democratic
government in place, many foreign nationals have come to Poland
to do business. Many of these foreign nationals have found
themselves within Poland on business for an extended period
of time -- and have found themselves making repeated visits
into the Republic of Poland. In this regard, these business
people have found it economical to invest in an apartment
for their personal residence for the time they are present
in the country on business.
Second, a notable number of men and women from foreign countries
have purchased apartments in Poland including resort communities. While
the drive to purchase vacation or holiday property has been
a bit slow in Poland -- which will be discussed a bit more
shortly -- there are a growing number of people from foreign
nations who have taken to purchasing an apartment in Poland for holiday or second home purposes.
Finally, there are foreign nationals who have purchased Warsaw apartments in Poland to be leased or rented to other people, primarily
other foreign nationals. These people, these foreign nationals
who have purchased apartments for investment purposes, have
done so to serve both people coming to Poland on holiday and
people coming to Poland on business. By leasing apartments
to business and holiday visitors, these particular foreign
nationals have been able to generate a good income through
the years through this type of apartment investment.
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For the first decade in which Poland was independent of
the Soviet bloc, tourism into the country was not a booming
business. However, as time has gone forward, more and more
foreign nationals are making Poland a holiday destination.
As a consequence, more foreign nationals each year have
purchased holiday or vacation properties -- primarily in
the form of apartments, but a growing number of free standing
residences as well. Most real estate industry analysts predict
that the number of foreign nationals who choose to purchase
second home or holiday property in Poland will increase
over the course of the coming decade.
Most of these experts anticipate that the biggest thrust
will be in the purchase of apartments in resort communities
in Poland. The experts maintain that these foreign nationals
generally will be from European Union nations. There has
been an increase in foreign nationals from non-EU countries
who also have found themselves attracted to resort real
estate in Poland at this point in time.
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When considering the options for a mortgage in Poland there are a couple of choices to consider;
- Do you consider raising finance on your existing property
in the UK to cover the whole cost of your purchase abroad?
A good idea if the interest rate in the country in question
is a lot higher than it is here in the UK as you will
pay a lot less in monthly repayments.
- Do you secure a mortgage against the property from a
local bank in the country of purchase? This can be a wise
option especially if the interest rate is lower than our
current UK interest rate. Most overseas mortgage / bank
lenders will require upto 30% deposit on mortgages. However,
you will need to give some thought to how you will service
your mortgage payments each month especially if you are
not living or earning in that country as you may well
lose out on exchanging money each time to cover monthly
expenses. Check out our Foreign
Currency page to see how you can save money in this
example
- Some Builders and developers may well offer their own
mortgage facilities on their properties for sale. This
can be beneficial to both parties depending on the logistics
of the mortgage or loan facility. Always check and compare
with the two options above before making your final descision.
For more details on Mortgages
in Poland visit our Mortgage page in the Poland section.
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Specific
steps to buying real estate property in Poland |
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A foreign national is permitted to purchase and own real
estate in Poland. With that said, a foreign national must
obtain the permission of the Ministry of Home Affairs of
the Republic of Poland in advance of purchasing real estate
in that country.
The application process before the Ministry of Home Affairs
is not a particularly complicated process. Indeed, there
are lawyers in the country that specialize specifically
in this application process due to the growing number of
foreign nationals who are buying real estate in Poland.
A company in Poland that has over 50% foreign ownership
must also obtain permission from the Ministry of Home Affairs
before that company can purchase real estate in Poland.
Again, the application process for a company is not particularly
complicated.
There are some restrictions geographically as to where a
foreign national actually can purchase real estate in Poland.
The Polish government restricts the ownership of real estate
on the so-called Polish frontier. It is important for a
foreign national to make certain that the locale in which
he or she intends to purchase real estate in Poland is not
within one or another of these restricted zones.
Approval from the Ministry of Home Affairs to purchase real
estate in Poland generally is good for a period of six months.
A person can apply for an extension when the initial period
expires.
Once permission to purchase real estate is obtained from
the Ministry, a buyer of real estate makes an offer to a
seller, which will then be memorialized in a preliminary
contract or agreement for sale.
Following the signing of this initial contract, the buyer
is given a specified period of time to obtain financing.
Additionally, the seller is obliged to make certain that
the title to the real estate is clear and capable to being
conveyed to the buyer during this time period.
In most instances, the buyer is required to post a deposit
at the time this initial agreement is executed between the
parties. More often than not, the deposit is in the amount
of 10 to 15%.
The real estate purchasing process comes to an end when
the parties execute the final agreement for sale and conveyance
of the real estate. A new title is prepared, placing the
real estate in the name of the buyer. The title is then
filed with the government.
Once again, a foreign national does need to keep in mind
that prior permission of the Ministry of Home Affairs is
required before a foreign national can purchase real estate
in that country. It is vital to keep in mind that if permission
is not obtained by the Ministry in advance of the purchase
of real estate, the transaction will be voided and the purchaser
will lose his or her interest in real estate -- and his
or her money as well
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POLAND
