Property in Poland

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Pope John 11

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Could anyone tell me about buying property in Poland?
1. Cities of Wroclaw or Krakcow?
2. Tax & legal system,solicitors based in Ireland with experience
3. Land or apartments?
4. Is it a good idea?
5. Web & contact addresses for Polish estate agents (who speak good english)
6. Web & contact
 
Just to let you know you also have a liability to irish revenue. See [broken link removed] in general and example rental account and how are foreign rents taxed in particular.

You should also be aware of currency fluctuations and inheritance rights etc
 
Hi pope - i have recently bought in Krakow - €200k on a 125m2 apartment (yes that does sound expensive but it is in probably the most exclusive area of the city). The city is buzzing and I knew somebody there on the ground so felt comfortable buying in that city as opposed to anywhere else.

It's one of the biggest challenges buying in any foreign city - where exactly in the city to buy!

Anyway I got my mortgage through GE Money Bank. AIB also have an operation over there but they are very expensive. If I was going again I would seek out a mortgage broker as they will achieve best value and they are well used to foreigners buying over there.

In relation to Legals, I went through a large/prestigious firm over there where they're fluent in English and all documents are translated. Like a MOB over here. It was an expensive process but they were fantastic and they made me feel very comfortable with the purchase. I would strongly recommend this approach although it's not strictly necessary as they have a notary system over there. You could employ a solicitor here but I would need to be convinced they would add much value. They will certainly not indemnify!

Go to overseaslist.com to get an overview of Polish estate agents.

Is it a good purchase? That's the key question. Fundamentals are good there, their aspirations are to catch up with Western Europe and all they need to do is shed off another layer or two of the past and off they go. Key thing to factor in is the Capital Gains Tax over there - it's 10% of the sale price, not the gain. So you need good gains over quite a period to make the investment stack up.

If you want to get specifics off me about Legal and Banking feel free to PM me. I have no association with them other than I used them once.

If you want additional information about sourcing property you can PM me as I do have commercial links to one agent over there.
 
Don't forget about Poznan if you are thinking about Wroclaw or Krakow.

Slightly smaller population (570,000), pros of Poznan are lower cost per m2, at an earlier stage of the property cycle, less supply of apartments than Krakow and therefore less likely to be swamped with buy-to-let apartments. More of a business city than the other two and 2nd behind Warsaw in GDP per capita, wages, low unemployment etc. Cons of Poznan is that it is not as pretty and not as much fun as the other two.
 
asdfg said:
Just to let you know you also have a liability to irish revenue.
Click to expand...

Just to clarify, are you liable to the same extent as owning an Irish investment property? e.g. tax relief on interest etc. Also, I believe any foreign tax you pay abroad can be treated as a deduction for Irish purposes here?
 
are you liable to the same extent as owning an Irish investment property? e.g. tax relief on interest etc
Click to expand...

See "what expenses can be claimed" in gereral and "interest paid on monies borrowed" in particular in relation to relief on interest from the link above. (It is the interest paid on money borrowed)

I believe any foreign tax you pay abroad can be treated as a deduction for Irish purposes here?
Click to expand...

See "How are foreign rents taxed?" from the link above and in particular note

extract from above link
"Deductions are also normally available in respect of such income for sums in respect of foreign tax paid"
 
ETY said:
Hi pope - i have recently bought in Krakow - €200k on a 125m2 apartment (yes that does sound expensive but it is in probably the most exclusive area of the city). The city is buzzing and I knew somebody there on the ground so felt comfortable buying in that city as opposed to anywhere else.

It's one of the biggest challenges buying in any foreign city - where exactly in the city to buy!

Anyway I got my mortgage through GE Money Bank. AIB also have an operation over there but they are very expensive. If I was going again I would seek out a mortgage broker as they will achieve best value and they are well used to foreigners buying over there.

In relation to Legals, I went through a large/prestigious firm over there where they're fluent in English and all documents are translated. Like a MOB over here. It was an expensive process but they were fantastic and they made me feel very comfortable with the purchase. I would strongly recommend this approach although it's not strictly necessary as they have a notary system over there. You could employ a solicitor here but I would need to be convinced they would add much value. They will certainly not indemnify!

Go to overseaslist.com to get an overview of Polish estate agents.

Is it a good purchase? That's the key question. Fundamentals are good there, their aspirations are to catch up with Western Europe and all they need to do is shed off another layer or two of the past and off they go. Key thing to factor in is the Capital Gains Tax over there - it's 10% of the sale price, not the gain. So you need good gains over quite a period to make the investment stack up.

If you want to get specifics off me about Legal and Banking feel free to PM me. I have no association with them other than I used them once.

If you want additional information about sourcing property you can PM me as I do have commercial links to one agent over there.
Click to expand...
Hi ETY

Can you tell me the name of the firm who translated your legal documents.
 
Although translations are necessary, if there is any conflict, ambiguity or mistranslation the original foreign (polish) document will apply to resolve any conflicts.
 
The details of the translator I used are:

Elzbieta Nowak ([EMAIL="eknowak@ists.pl)"]eknowak@ists.pl)[/EMAIL]

She was recommended by my Lawyer. It's a good point made in relation to which document stands in a court of law and it is the polish one. That being said she's very thorough and you'll never get a perfect translation.
 
Hi! I'm from Poland,Poznan...living for 2 years in Dublin. I've got good knowledge about Poland and after these years in Dublin also quite good comparsion Poland to Ireland . Need info or advice- send me message.
 
asdfg said:
Although translations are necessary, if there is any conflict, ambiguity or mistranslation the original foreign (polish) document will apply to resolve any conflicts.
Click to expand...

Good advice; in all locations, not just Poland, where the first language is not English, the contract language is the local tongue and the translation has little or no legal bearing in the case of dispute. Always use a locally based lawyer in any foreign property transactions.

Krakow is certainly a better bet than a lot of what is on offer in Warsaw at the minute, although it too has probably pased the point where quick gains can be made -- think long term here.

One point to watch in Poland vis a vis apartments -- the freehold is often a percentage of the building freehold rather than specific to the apartment. Some potential down the road for problems in the case of disputes.
 
Warsaw is pricey at moment.

Krakow is right behind it in price in fact id say yield is probably better in warsaw than Krakow.

Wroclaw now has value value value in it.
 
Wroclaw has value compared to the two other cities but has had the strongest price growth since August. Expect to pay 6,500 PLN per m2 for a buy to let investment in Wroclaw at present, and you can pay up to 10,000 PLN for the priciest development.

Poznan is less expensive (about 5,500 PLN) but has very little new property available to buy.
 
I have just bought my 3rd apartment in Poznan. I thought it was better value for money than Krakow or Warsaw. Looked at Wroclaw but had a contact in Poznan through two local guys. They had set up a company dealing in this city and introduced me to a complete set up of banks estate agents and properties. So far everything they have said has come true, The apartments are studio and 1 bed from €52k to €68K. I like the city, there are very limited newe apartments for sale or rent which attracted me to the area. GDP is in the top 3 in the country. For me it seemed as good deal I could find taking into account the uncertainity of forigen investments in any country.
 
shep said:
Looked at Wroclaw but had a contact in Poznan through two local guys. They had set up a company dealing in this city and introduced me to a complete set up of banks estate agents and properties.
Click to expand...

Just curious Shep but were you dealing with a Polish company in Poznan or with an Irish company flogging apartments there. I'm heading out there in the near future for a nose around to see the city and get a feel for it's investment potential.
 
I was dealing with 2 Irish men. I believe they are set up as a Polish company. If you want, you can contact me I can give you there contact details. They travel out there regularly.
 
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