Americans looking to buy real estate in Europe are turning to Poland. It’s easy to see why—the economy is booming and the cultural landscape is thriving. So, if you want to set up base in a new country or simply want to expand your portfolio, you can’t go wrong with Poland.
But that creates a lot of questions.
Can Americans buy Polish property? If so, what’s that process like? And probably most importantly, how much will you then owe in taxes?
Let’s go through the process, look at your financing options, and understand your tax liability.
How Do I Buy in Poland?
General Rules for Foreigners
For citizens of the European Union (EU) or the European Economic Area (EEA), buying property in Poland is relatively straightforward. It’s really no different from buying in your home country.
But Americans and other non-EU/EEA citizens need a permit from the Polish Ministry of the Interior and Administration (Ministerstwo Spraw Wewnętrznych i Administracji) to acquire real estate (particularly for single-family homes or properties that include land).
Yet, there are exceptions. If you are purchasing an apartment (condominium) without associated land ownership, a permit may not be necessary. And this is a popular option for that very reason.
Do I need a permit?
Americans usually need a permit to purchase if the property includes land beyond a designated threshold or if it is agricultural or forest land.
The permit application process requires documents demonstrating the purpose of the purchase, proof of financial stability, and sometimes a background check. This permit can take a few months to get, so plan your timeline accordingly.
Does owning Polish property grant me residency status?
No – but while owning property in Poland does not automatically grant residency directly, it can be a compelling factor when applying for a temporary or long-term residency permit.
Want to learn more about the process of getting residency status in Poland? Contact one of our experts for a free consultation call.
How to Finance Buying Property in Poland
Cash Transactions vs. Mortgage Options
Many Americans opt to purchase property in Poland with cash to simplify the transaction and eliminate the hurdles of securing a local mortgage.
But not everyone has that much cash on hand. And luckily, Polish banks do offer mortgage products to foreign buyers under specific conditions. You will typically need to provide:
- A valid residency permit or strong ties to Poland (e.g., long-term employment contract).
- Proof of stable income, which could include a combination of American and Polish revenue streams.
- A down payment. Non-residents often face higher down payment requirements—sometimes 20% or more of the total property price.
Note: Given that the Polish currency is the złoty (PLN), currency exchange fluctuations can affect the overall cost of your purchase.
The Buying Process: Step by Step
- Research and Property Search Begin your journey with thorough research on Poland’s real estate market. Websites like otodom.pl and gumtree.pl list properties for sale or rent.
- Engaging a Real Estate Agent or Lawyer While it is possible to conduct your own property search and negotiations, working with a reputable real estate agent or property lawyer gives you three main benefits. The first is crossing the language barrier. The second is their knowledge of the legal requirements. And the third? They understand the cultural norms for negotiating and communicating.
- Preliminary Contract (Umowa Przedwstępna)
Once you have identified a suitable property, you typically sign a preliminary contract—known in Polish as an umowa przedwstępna. This agreement outlines:
- The purchase price.
- The payment schedule.
- The anticipated date of the final notarial deed.
Buyers often pay a deposit, commonly between 10% and 20% of the total purchase price.
- Obtaining the Permit (If Required)
If you need a permit from the Ministry of the Interior and Administration, this is the stage at which you apply.
You will usually submit your preliminary contract, personal documentation, and proof of financial capacity. The ministry will review your application, and if successful, grant you the permit necessary to proceed with the final purchase.
- Final Notarial Deed
Under Polish law, all real estate transactions must take place before a notary public, who drafts the final contract in the form of a notarial deed (akt notarialny). This document officially transfers the property’s ownership to you.
After the deed is signed, the notary will register the transaction with the local land and mortgage registry (KW or Księga Wieczysta), ensuring your title is officially recognized. Typically, the buyer is responsible for the notary fees and stamp duty.
Taxes and Ongoing Costs of Buying Polish Property
Property Transfer Tax vs. VAT
When purchasing property on the secondary market, a 2% property transfer tax (podatek od czynności cywilnoprawnych) is usually levied on the market value of the real estate.
If you purchase from a developer on the primary market, you pay VAT (Value Added Tax) instead—anywhere from 8% to 23%. That all depends on factors like the size of the property and its intended use.
Annual Property Taxes
Once you own property in Poland, you will owe ongoing annual property taxes. These depend on the property’s size and type.
It also matters where in Poland you bought the property. Municipalities set local tax rates, so know this rate before you buy.
Additional Fees
Obviously, you’ll have to pay some upkeep. But you might also be in a situation where that includes a flat fee. For instance, most Polish apartments are part of a housing cooperative or spółdzielnia, which can charge monthly fees for building upkeep, renovations, and communal facilities.
Making the Leap and Investing in Poland
More and more Americans are curious about investing in Poland. If that’s you, then the time to act is now. The market is likely to heat up in the coming years, and prices are very affordable compared to US real estate.
