How to buy a house or apartment in Poland for a Ukrainian on favorable terms?
Buying real estate or other property is a pleasant, exciting, but at the same time, quite a complicated process, which has many nuances and difficult situations. Many people believe buying real estate in Poland for a Ukrainian is as easy as it is in Ukraine, but not every foreigner knows that any country has its own laws, norms, and rules, which can lead to serious financial spending and non-standard situations that complicate the process of acquiring your own home.
As a result, the purchase of housing in the Republic of Poland is a crucial step for any Ukrainian who decided to become the owner of an apartment or house abroad. In order not to get into non-standard situations and not spend extra money on bureaucratic manipulations, we propose to deal with all the pitfalls, nuances, and aspects that will tell whether a Ukrainian can buy an apartment in Poland.
Why is housing in Poland popular with Ukrainians?
Despite the fact that housing in any country is purchased for a comfortable stay, a change of scenery, in the case of Polish real estate, there are a number of advantages that reveal the secret of why it is so necessary and important for a Ukrainian to buy housing in Poland:
- Cost. Housing in Poland is much cheaper than real estate in other European countries. If we consider the statistics, then the prices for 1 sq. m. of Polish real estate is 6-7 times cheaper than, for example, in London or 5 times more affordable than in Paris.
- Promising investment. Since Ukraine has not yet become part of the European Union and the economic situation in the country is not as good as it might seem at first glance, Poland is progressing in accordance with European standards, so property prices are regularly increasing. As a result, buying real estate in Poland is a good investment, which can bring good income in the future.
- Available credit conditions. If we compare the conditions for providing mortgages for real estate in other CIS countries, it is much easier to get a loan for housing in Poland with a minimum package of documents.
- There is no direct link to citizenship. This means that when buying an apartment or house in Poland, the homeowner does not receive citizenship, but this is a direct indicator of obtaining a residence permit.
- Additional source of income. After buying your own home in Poland, the owner does not have to live there, but renting out your home will allow you to receive a good monthly income.
Purchase of land, apartment or private house in Poland by Ukrainian citizens
The legislative framework of the Polish Republic is quite loyal to the purchase of the real estate by residents of other countries. However, before a Ukrainian can buy land, a private house, or an apartment in Poland, one must be prepared for the fact that additional permits may be required to complete the purchase and sale transaction. Special permission is not required in the following cases:
- the new property will be used as non-residential premises, including a garage;
- the future owner of the property has a joint venture card and has been living in Poland for more than 5 years;
- the buyer has a marriage relationship with a citizen of the Republic of Poland and he/she has lived in Poland for at least 2 years, and the property itself is considered jointly acquired.
If realtors are involved in the conclusion of the sales contract, we recommend that you settle all issues related to commission services in advance. This is necessary in order to exclude any situations of unlawful increase in the increase in the cost of services, at each stage of the transaction.
When do you need permission?
When buying a home in the Republic of Poland, foreigners may encounter situations when the conclusion of a sale and purchase agreement must be coordinated with the relevant authorities. In such situations, the buyer must obtain permits from the Ministry of Internal Affairs of the Republic of Poland, the Department of Concessions, and Permits. Before issuing a permit, the Ministry of Internal Affairs conducts a number of checks that this purchase will not pose a threat to the security and law and order of the Republic of Poland.
As a rule, permits are required in the following cases:
- The subject of the purchase and sale agreement is a private house, including outside the city.
- A land plot of more than 1 hectare is being purchased.
- The plot or house is located in the border zone.
- The land plot to be purchased is a part of the road or the adjacent territory, together with which a part of the interest for its use is purchased.
Procedure for obtaining permission
To submit an application to the Ministry of Internal Affairs for further obtaining permission, a package of documents must be attached to the free-form application:
- Copy of passport (all pages of the document).
- If the purchase is made by a private entrepreneur, documents of title (constituent) documents are attached.
- Documents for a house or plot: statement, documentation for a plot, house passport, mortgage book.
- Research result.
- Development plan.
- Statement from the current owner of the property.
Consideration of the application takes from 4 to 9 months; if the decision is positive, a permit is issued that is valid for 12 months. During this time, it is necessary to settle all the nuances and conclude a deal.
Cost of obtaining a permit
In different regions (voivodeships) of the Republic of Poland, the prices for obtaining permits may differ. However, in each Voivodeship there are basic items of expenditure that will help to pre-calculate all the costs of preparing for the sale and purchase:
- state fee – PLN 98;
- resolution – PLN 1750;
- when making a deal by an authorized person, a power of attorney fee is charged – PLN 17.
In addition to these costs, buying a home in Poland provides for the payment of a general tax in the amount of 2% of the amount of the transaction and payment for the services of a notary office. This item of expenses is provided for when registering any real estate transactions in the secondary market.
Which is better to choose: secondary housing or new building?
The Polish real estate market, as well as in housing in other countries, provides for the sale and purchase of both new housing and secondary ones. Buying a second home has clear advantages:
- more affordable price;
- the possibility of bargaining before the conclusion of the transaction, as a result of which it is possible to reduce the market value of a house / apartment by 7-8%;
- familiar layout with isolated kitchens.
Buying a new home also opens up many prospects:
- 10% of apartments can be purchased with ready-made renovation
- when buying an apartment without final finishing, there is an opportunity to make repairs on your own, but remember that this will entail additional expenses;
- the ability to change the layout before moving into the house.
In order not to get into an unpleasant situation, apartments in new buildings are recommended to read the document “Stan deweloperski” before signing the contract, since it must contain all information about the standard and materials, in addition, according to the current legislation, such apartments must already have:
- floor screed;
- installed doors;
- prepared walls for painting;
- electrical network connected;
- summed up all communication systems;
- counters installed;
- batteries and a gas boiler are installed (if the apartment has gas heating)
Where is the best place to choose an apartment to buy in Poland?
As in Ukraine, you can find an apartment in Poland to buy on various free services (olkh, avito), information newspapers and even on social networks. As a rule, on such sites, not all information about the property is indicated, there may not be up-to-date photos and contact details of the owner. If you are in doubt that real estate may have technical or legal problems, you can use the services of real estate companies that will select housing that suits your requirements and will help in processing all the necessary documents.
How can a citizen of Ukraine correctly execute a purchase and sale transaction?
To buy a home in Poland, a Ukrainian needs to prepare a package of documents in advance, without which the transaction will not be considered legal and it will be impossible to register the ownership of the new owner:
- cadastral number of the property
- current title deed;
- a document that confirms that no one is registered on the living space at the time of the transaction;
- a document confirming that there is no debt for utilities;
- permits (if required).
When registering ownership, the sale and purchase agreement is certified by a notary and can be of two formats: preliminary or full. Upon signing the full contract, 100% payment is made and the transfer of ownership is made. When signing the preliminary document, part of the payment is made. As a rule, such agreements are signed when a mortgage agreement is drawn up, which must be submitted to a Polish bank where the loan is issued.
Can a Ukrainian get a loan from a Polish bank?
If you do not take into account most of the myths that loans are not given to foreigners in Poland, then you can consider buying a new or secondary home on credit. To obtain a loan from a Polish bank, the borrower must meet the following criteria:
- the presence of a residence permit or a temporary residence card, which allows you to legally stay in Poland from 3 to 36 months, or permanent residence (a residence card), which is valid for up to 10 years;
- having a permanent stable income of at least PLN 2000;
- it is possible to make the first installment on the loan in the amount of 10% of the loan amount.
The credit line is divided into several groups depending on the borrower’s citizenship:
- for foreigners the interest on the loan is 4-5% of the loan amount;
- for residents of the European Union – 3%.
A loan in Poland for the purchase of housing is issued for a period of 20-45 years with the possibility of early repayment.
As you can see, it is quite profitable for a Ukrainian to buy housing in Poland: you can get additional income or legalize in the country. After all the nuances, pros, and cons of such a purchase are disclosed, every citizen of Ukraine can think about purchasing foreign housing on favorable terms.