Frequently Asked Questions
Studio Leonardo provides its customers with complete assistance, before, during and after the purchase of properties. Before purchasing - Organization of the trip to Krakow, with flight and hotel reservations; - Analysis of the real estate market in Krakow; - Analysis and requirements of the property concerned and investment strategy; - Accompaniment during the visit of the properties with our Italian-speaking staff; - Economic and financial planning. During the purchase Our staff will be at your disposal for the entire duration of your stay. It will help you manage the legal and financial aspects associated with your investment. Our services include: - Legal, notary, administrative and financial assistance for the purchase of the property; - Assistance for the establishment of a Polish company; - Opening a bank account in Poland; - Prepare the tax registration of the company in accordance with current tax law; All legal and tax documents will be translated into Italian by our staff. After purchase We provide our customers with a complete administration and management service for purchased properties. These services include: - Search for tenants and verification of reliability; - Rental management; - Maintenance of the property; - Organization and transfers of bills.
Based on our experience we recommend planning a 3 or 4 day trip with 2 or 3 nights stay: - 1st day: arrival in Krakow, transfer to the hotel and visit of the city; - 2nd day: visit to the properties, with subsequent analysis of the characteristics of the properties of greatest interest carried out with the help of our operators; - 3rd day: possible signing of the compromise/deed of purchase; - 4th day: departure from Krakow.
It is a local tax that is borne by land, buildings or buildings owned by the taxpayer. The rates are different depending on how the property is used and are established by the local (municipal) authorities. For a municipality, real estate tax constitutes income. The central authorities only set the upper limit of the rates. The following are subject to real estate tax: -land -buildings or parts of buildings - buildings or parts of buildings used for the exercise of an economic activity. The maximum limits of some rates applied for the year 2008: - residential buildings or parts thereof: 0.59 zlotys/m2 - buildings or parts of buildings used for the exercise of an economic activity: 19.01 zlotys/m2, - other buildings: 6.37 zlotys/m2 - land used for the exercise of an economic activity: 0.71 zlotys/m2, - other land: 0.35 zlotys/m2.
The income accrued from the rental of properties is subject to a 10% tax. In the case of the sale of a property, the capital gain accrued is subject to a tax of 19% if the property is sold before five years have passed from the purchase deed. The aforementioned taxation is canceled if the property is sold after the first five years or after one year if the owner takes up his residence in the aforementioned property.
Property prices in Krakow have recorded an upward trend in recent years, but nevertheless we are still far from the average of other European capitals. The major analysts in the sector agree in predicting the continuation of this trend, supported by the fact that Poland is one of the few European countries that presents lively economic growth, assuming an annual appreciation of between 10 and 20%.
- Fees payable to the Law firm/Notary, 0.8% - 1.0% calculated on the value of the property purchased; - Purchase tax:<br />approximately 2% registration tax. - Annual property tax (the equivalent of our ICI):Apartments: approximately €1 per square meter;
Based on our experience, we recommend the purchase of properties located in the city center, due to the ease with which the aforementioned properties are rented and therefore made profitable and the ability to maintain an intact value from inflationary erosion. In fact, in the center of Krakow there is a continuous demand from foreign citizens and companies. There are currently 30,000 foreign companies and more than 100,000 foreigners in Poland. The average annual income varies between 5 and 7%. The average investment varies between €70,000 and €130,000.
Foreign citizens can buy real estate in Poland without any restrictions and in two ways: - as a natural person - as a company The cost for establishing a limited liability company is approximately €3000 and compared to the purchase made by a single individual it offers the possibility of deducting the instrumental costs of a real estate development operation and the management costs of the property. Rental income is currently subject to 19% tax, calculated on profits. The single individual is currently subject to a tax of 18% calculated on the entire amount
All sales operations are carried out under our control with legal supervision, through a lawyer. After signing the purchase deed, the notary firm will register the deed and communicate the name of the new owner in the land register. The Polish land and cadastral register is fully computerized and registration and search times are usually quick.
Since May 2004, Poland has joined the countries of the European Union. The country's strong economic development and political stability have attracted the attention of international investors. Krakow, the cultural capital with its million inhabitants, is one of the most beautiful cities in Europe, and has become an important artistic, tourist and religious centre.