Poland is a country of eastern Europe with 38.626.349 citizens and a surface of 312.685 km². The capital is Warsaw.
The property market in Poland is one of the busiest in Europe thanks to the renewal and stabilization of political situation
The Polish tax system has three competing voices of direct taxes to the property market.
The first is the 'property tax' which isa local tax levied on land or buildings owned by the taxpayer.The rates are differentiated depending on the mode of use of the property and are established by local authorities (municipalities) because the central authorities set only the maximum rates.
Secondly, we have the tax and legal civil acts usually involves costs for the registration of the contract and the different marks for service and ultimately the tax on income from capital gain on the sale of real estate.
Do You want to establish a society?
The cost for setting up a limited liability company is about 3000 € and respect to the purchase made by a phisical person allows you to deduct the costs of a real estate development operation and management costs of the building.
The limited liability company may be formed by one
or more persons, the minimum share capital for the establishment is
around € 1.2500, the memorandum should be drafted as a deed and
registered on the National Court Register (KRS).
In Poland you have to pay incomes taxes and pay v.a.t each month, closing down the annual budget at 30th april.check different society forms
Questions and answers
- 1. Why invest in Poland?
Poland since May 2004 has become part of the European Union. The strong economic development and political stability in the country have attracted the attention of international investors. Krakow, the cultural capital with its one million inhabitants is one of the most beautiful cities in Europe, and has become an important artistic, tourist and religious centre .
- 2. Which guarantees has got a foreign investor?
All purchase transactions are executed under our control with the office supervision, through an attorney. After the conclusion of purchase, the notary will act and transcribe the name of the new owner in the perpetual book. The land register and perpetual book are fully computerized and the time of registration and research are usually rapid.
- 3. A foreigner can purchase real estate?
Foreigners can buy property in Poland without any restriction and through two ways:
As an individual
As the company
The cost for setting up a limited liability company is about 3000 € and respect to the purchase made by a physical person allows you to deduct the costs of a real estate development operation and management costs of the building .The rental income is currently subject to 19% tax, calculated on profits. The individual is currently subject to a tax of 18% calculated on the entire amount
- 4. Which type of investment is recommended?
Based on our experience We recommend the purchase of property located in the city, the ease with which these properties are rented and the capacity of keeping an integrated value after inflationary erosion. In the center of Krakow in fact there is a continuous demand from citizens and foreign companies. Currently in Poland there are 30,000 foreign firms and more than 100,000 foreigners. The average annual income ranges between 5 and 7%. The average investment ranges between 70,000 and 130.000 €.
- 5. What costs must be calculated for the purchase of a property?
- Fees payable to the notary are about 0.8% - 1.0% calculated on the value of the property purchased;
- Fee for the purchase:
about 2% of tax registration.
-Annual property tax
Apartments: 1 € per sqm approximately.
- 6. What are the expectations of analysts?
Property prices in Kraków have made in recent years a trend upward, but nevertheless we are still far from the average of other European capitals. The major industry analysts do agree to provide for the continuation of this trend, supported by the fact that Poland and 'one of the few European countries which has a buoyant economic growth, assuming an annual appreciation of between 7% - and 12%.
- 7. how the real estate incomes are taxed?
The income deriving from the leasing of real estate is subject to tax on the incomes of people ranging from 18% to 19% depending on whether the owner is a person or entity. In the case of sale of a property, the gain realized is subject to a tax of 19% if the property is sold before five years from the moment of purchase. This tax is canceled if the property is sold after five years or after one year if the owner bring his official residence in that building
- 8. How much is the property tax ?
It 's a local tax levied on land or buildings owned by the taxpayer. The rates are different, depending on the mode of use of the property and are established by local authorities (municipalities). For a municipality, the property tax means income. The central authorities set only the maximum rates.
Are subject to tax on real estate:
• buildings or parts of buildings
• buildings or parts of buildings used for the exercise of economic activity.
The maximum limits of certain rates applicable for the year 2008:
- Residential buildings or parts thereof: 0.59 zloty/m2,
- Buildings or parts of buildings used for the exercise of economic activity: 19.01 zloty/m2,
- Other buildings: 6.37 zloty/m2,
- Land used for the exercise of economic activity: 0.71 zloty/m2,
- Other land: 0.35 zloty/m2.
- 9. What kind of travel is recommended?
Based on our experience we recommend planning a trip of 3 or 4 days with 2 or 3 nights stay:
- Day 1: Arrival in Krakow, transfer to hotel and sightseeing
- Day 2: visit of the property, with subsequent analysis of the characteristics of them with the help of our workers
- Day 3: Any stipulation of compromise and act of purchase
- Day 4: Departure from Krakow.
- 10. What support is offered to customers?