Pros of buying property in Poland

Mortgages in Poland for foreigners have become a key financial mechanism for buying a home in the EU. The Polish property market is showing steady growth. Demand is supported by a stable economy, favourable geographical location and a developed banking system. The country’s financial institutions willingly provide loans not only to citizens, but also to investors from other countries, especially those with transparent incomes and stable status.

When buying property with mortgage funds, foreigners gain access to a European asset with title protection, predictable repayments and the possibility of subsequent relocation. Rates remain at competitive levels from 3.5 per cent, with down payments starting at 20 per cent. The procedure is clear and the loan term is up to 35 years.

Who and how can get a mortgage in Poland: information for foreigners

Polish banks lend to citizens of the EU, CIS, Asia and the USA, provided they have a stable income, a clear source of funds and a documented legal status in the country. Mortgage in Poland for foreigners is available even without residence permit, but the requirements become stricter in the absence of residency.

Categories of foreign borrowers:

• with a temporary residence permit – in the presence of a labour contract;

• with long-term stay – business owners, investors;

  

• non-residents without status in Poland – through international programmes;

• EU citizens – equal to local citizens under the terms of the loan.

Legal status affects the amount of contribution, the type of documents and the bank’s interest rate surcharge. The more stable the borrower is, the more favourable the terms.

Terms and conditions of mortgage lending

Mortgages in Poland for foreigners are issued in the national currency – Polish zloty. Foreign currency lending is not available, which reduces the risks of exchange rate fluctuations and ensures predictability of repayments.

Main parameters:

1. The interest rate ranges from 3.5 per cent to 5.2 per cent.

2. Loan term – from 5 to 35 years.

3. The maximum loan amount is up to 80% of the object’s value.

4. Down payment – from 20% (for residents), from 30% (for non-residents).

5. Borrower’s age – from 21 to 70 years old.

6. Property type – new buildings, secondary market, commercial properties.

Banks in Poland will only grant a mortgage loan on condition of a full credit check. Financial history, income, stability of employment and legal clarity of the transaction play a decisive role.

Income, documents and legal details

A mortgage in Poland for foreigners requires a clear and transparent evidence base. The bank analyses the income structure for the last 6-12 months, with preference given to official salaries and contracts.

The mandatory package includes:

• passport and residence permit;

• income statements, tax returns;

• a tenancy agreement or business registration;

• credit report (if there was a previous loan);

• bank statements;

• preliminary sales contract;

• Title documents for the object.

When buying a flat in Poland with a mortgage, a non-resident applies for a tax identification number (PESEL), registers the address of residence and confirms the existence of an account in a Polish bank.

Step-by-step scheme: how to get a mortgage in Poland for a foreigner

Consistency affects the speed of approval and minimises legal and financial risks. Stages of processing:

1. Preparation of financial dossier – translation of documents, certificates, statements.

2. Opening an account in a Polish bank.

3. Obtaining a PESEL tax number and registering an address.

4. Selection of the object and conclusion of the preliminary contract.

5. Property valuation and independent expertise.

6. Submitting a mortgage application to the selected bank.

7. Analysing your credit file and getting approval.

8. Signing of the agreement and transfer of liens.

9. State registration of ownership.

10. Transferring the money to the seller and handing over the keys.

The procedure lasts from 6 to 12 weeks, depending on the completeness of the documents and the promptness of the parties. With the support of an experienced lawyer and mortgage broker, the process is simplified and takes less time.

Banks in Poland: who lends to foreign investors

Home loans in Poland are provided by large universal banks actively working with foreign borrowers. If you have a stable income and a clean dossier, institutions are willing to open financing for the purchase of primary or secondary housing. The most active lenders:

• PKO BP, the country’s largest bank, lends for up to 35 years;

• mBank – loyal terms and high speed of consideration;

• Santander Polska – reliability and a wide range of mortgages;

• Bank Pekao – co-operation with non-residents, rate from 3.7%;

• Alior Bank – active lending to IT professionals and freelancers.

Common investor mistakes

A mortgage in Poland for foreigners requires care. Mistakes increase the processing time or lead to rejection. Below are common problems:

1. Ignoring translation of documents – banks require official translations into Polish.

2. Lack of tax number – without PESEL, clearance is not possible.

3. Insufficient down payment – the bank rejects the application if the contribution is less than the established minimum.

4. Unreliable income – only official and documented income is accepted.

5. Incomplete package of documents – absence of even one certificate slows down approval.

6. Choosing the wrong bank – conditions vary, not all work with foreigners.

7. Buying without prior due diligence – properties with encumbrances create risks.

8. Misunderstanding the payment schedule – incorrect calculation leads to delinquency.

9. Neglecting insurance – insurance lowers the rate and protects the investment.

10. No escort – a professional advisor saves months and reduces risk.

Investing in Polish property: a strategic tool

Mortgage in Poland for foreigners is actively used not only for living but also as an element of property investment strategy. Warsaw, Krakow, Gdansk, Wroclaw – cities with steady growth of housing prices, high demand for rent and active development of infrastructure.

Real estate in Poland brings income from 5 to 8% per annum when rented out, with mortgage payments are often covered by income from tenants. In 5-7 years, the owner builds up capital, improves credit history and receives an asset that grows in value every year.

The mortgage is especially relevant for an investor who plans to:

• to acquire studios in the city centre;

• to invest in an apartment complex for daily rent;

  

• to buy a property with the intention of selling it after the market rises.

Banks in the country take into account the investment model and provide mortgages if the conditions are met. The payback period for projects with the right structure does not exceed 10 years.

Conclusion

A mortgage in Poland for foreigners opens access to an asset in the EU with minimal risks and high predictability. With the right income, a reasonable down payment and profitability calculation, the property becomes a source of passive income and legal support. Conditions remain transparent, interest rates are competitive and the banking system protects the rights of the borrower and the seller.

Obtaining a mortgage loan requires discipline, but it provides a clear tool for creating capital, building an investment portfolio and solving the issues of living in one of the most promising countries in Central Europe.

Property taxes in Poland have undergone significant changes over the last two decades. Previously, the regulatory system was less transparent, but gradual reforms in legislation have allowed for a high level of investor protection. With the adoption of the Urban Leases Act (LAU) and other regulations, the tax system has become more predictable. Historically, the steady growth of the Polish property market has been accompanied by adjustments in commission rates. Tax amounts are formed on the basis of regional indicators, which makes it possible to take into account the specifics of each municipality and the regional economy.

Property tax rates and charges in Poland

Commission amounts in the country are calculated according to strict rules established by the Ministry of Finance. They are also specified by local authorities. Thus, for different types of objects there are the following maximum rates according to 2024 data:

1. Business-related land – PLN 1.34 per square metre.
2. Land under standing or running water – PLN 6.66 per square metre.
3. Other land, including facilities of public benefit organisations – 0.71 PLN per sq. m.
4. Residential property – PLN 1.15 per square metre.
5. Business-related buildings – 33.10 PLN per square metre.

In 2025, the rates are forecast to increase by 2.7% compared to 2024, reflecting inflationary processes in the country. For example, the rate for residential properties will increase to PLN 1.18 per square metre and for commercial properties to PLN 34.00 per square metre. Property taxes in Poland play a key role in value formation and should be taken into account when planning investments.

Taxes when buying property in Poland: VAT and PCC

Two main levies apply to the purchase of a property in the country: VAT and civil transaction tax (PCC). The former is charged on the purchase of new buildings from a property developer. The standard VAT rate is 23%, but a reduced rate of 8% applies for residential properties up to 150m². Secondary purchases are subject to PCC, which is 2% of the market value of the dwelling. The percentages depend on the type of transaction and the property, which requires careful analysis of each case. The investor is advised to carefully study the taxation conditions to avoid unexpected costs and optimise the investment.

Notary services and additional costs

Property taxes in Poland are accompanied by mandatory costs associated with the registration of the transaction. Notary services play an important role, as the specialist certifies the sale and purchase agreement and submits data to the land registry. The maximum rate of remuneration of a notary in 2024 reached PLN 10,000.

Additional costs include real estate agency commissions (up to 3% of the value) and, in some cases, fees when applying for a mortgage loan. It should be borne in mind that property taxes in Poland, together with notary and agency fees, can be a significant expense, which should be factored into the financial plan.

Taxes on income on the sale of real estate

When selling a property in Poland, the profit is subject to income tax (PIT) at the rate of 19% on the difference. But if the property is sold after 5 years from the date of purchase, no interest is charged. An additional condition is that the investor must use the proceeds for their own housing purposes within 3 years after the transaction. This system of property taxes in Poland stimulates long-term investments and reduces the commission burden for those who plan to live in the acquired area or use it for permanent rent.

Inheritance and gift taxes

Property taxes in Poland also apply to inheritance and donation of properties. Depending on the degree of kinship between the parties, the system divides the beneficiaries into three groups:

1. For close relatives (group one), there is a fee waiver for filing SD-Z2 declaration within 6 months.
2. The other groups have progressive rates: for the first – from 3% to 7%, for the second – from 7% to 12%, for the third – from 12% to 20% of the value of property exceeding certain limits.

Taxes on rental property

Income from rental property in Poland is taxed under a special system. Individuals are subject to a lump sum tax (ryczałt) of 8.5% on income over PLN 100,000 and 12.5% for smaller amounts. At the same time, self-employed persons can choose between the rate of 17% or a linear tax of 19% depending on their profits. Renting commissions are calculated on total income without taking into account expenses, which requires precise planning and optimisation of payments. Timely filing of the PIT-28 return allows you to avoid penalties and ensure a refund of overpaid amounts if the tax burden was overstated.

Recommendations for investors

Property taxes in Poland play an important role when buying properties and require careful consideration. Recommended:

1. Thoroughly research current legislation, including the Law on Urban Leases (LAU) and current tax rates.
2. Use the services of experienced real estate agents specialising in the Polish market to obtain accurate information on additional costs.
3. Plan transactions taking into account all tax obligations – from VAT to PCC, as well as the costs of notary services and agent commissions.
4. When selling, take into account the possibility of exemption from income tax when owning the property for more than 5 years and use the proceeds for housing purposes.
5. Evaluate tax reliefs and special conditions for inheriting or gifting real estate to optimise financial losses.

These recommendations will help to minimise tax costs and ensure the sustainability of investments in the property market in Poland.

Conclusion

An analysis of Poland’s tax system shows that property commissions are considered an important element in the process of buying and owning property here. Transparency of legislation, specific interest rates and clear regulations set by the Ministry of Finance create conditions for safe transactions.

Combining data on tax rates, legal regulations and additional costs allows you to form an objective idea of what property taxes in Poland an investor needs to consider. Recommendations on property selection, strategies to optimise fees and use of incentives will help you make an informed decision and create a sustainable investment portfolio.