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Overview
Property purchase costs are between 7-10% of the purchase price in Poland including stamp duty (also known as transfer tax), notary fees, agency fees (if applicable) and legal fees (if you engage the services of an independent notary or solicitor)
TAXES
Stamp duty (transfer tax)
Stamp duty on resale property is 2% . However, if you are paying the compulsory 7% VAT on new build property then you do not also pay this 2%. There is no stamp duty to pay on new build property.
VAT
Value Added Tax on newly built property is currently 7%. However, Poland 's EU accession treaty stipulates that this rate will soar to 22% on January 1, 2008 although most authorities on this state that property less than approximately 300m2 will not incur the higher rate.
LEGALS
Notary fees
Additional costs are the fee of the notary public. Notary fees are flexible and can be negotiated. Normally expect to pay between 1-2% of the purchase price plus 22% VAT. The notary will also charge for the following:
- Court payment 200 PLN
- Registering the mortgage 200 PLN
- New deeds 60 PLN
Land registry fee
The registration fee is a percentage of the purchase price. For property priced above 100,000 PLN (approximately GBP£17,860), which almost all off-pan investment property in Poland will cost, the fee is calculated as follows:
Formula:
- 20% of (6,600 PLN + 5% of any amount over 100,000 PLN)
Example:
- Property price: 300,000 PLN (approx. GBP£53,570)
- Registration fee: 20% of (6,600 PLN + [5% of 200,000]) = 3,320 PLN (approx. GBP£590)
Additional legal representation
The notary is appointed to serve as an intermediary between the buyer and seller and is a neutral party. You should also appoint an independent solicitor to represent you and read the contract on your behalf. For the service of inspecting documents and contracts, expect to pay approximately GBP£150 plus 22% VAT for several hours' legal work.
PROFESSIONAL
Translation
You may require the official Polish contract to be translated into English. Expect to pay approximately GBP£90 per contract.
Real estate agency commission
Agents normally charge the buyer commission from 2% (seldom) to 3% (usual) of the sale price and their fee incurs the 22% VAT.
Surveyor's fee
Surveys are not an integral part of the purchase process in Poland as they are in the UK . Very few Poles have a survey carried out on a potential property. As a result, there are no licensed surveyors in Poland . However, you can commission a 1-2 page report from a licensed builder for about £45 including translation.
FINANCE
Mortgage fees
Mortgage arrangement fees in Poland range from 1-2.5% of the value of the mortgage, though some banks offer promotional reductions on this fee from time to time. In some cases, lenders will add their fees and charges to the loan amount so that you do no have to pay this fee.
SUMMARY
Example of purchase costs in PLN (resale property)
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Property price |
200,000 |
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Stamp duty 2% |
4,000 |
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Notary fee 0.9% |
1,800 |
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VAT on notary fee 22% |
396 |
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Agency fee 3% |
6,000 |
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VAT on agency fee 22% |
1,320 |
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Land Registry application fee |
150 |
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VAT on Land Registry application fee |
33 |
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Entry in Land Registry |
200 |
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Additional legal documents (if necessary) |
7 |
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Total Costs |
13,899 |
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Percentage of purchase price |
6.95% |
Sources & Resources
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