Poland is a popular choice for UK expats and retirees, with nearly 5,000 Brits currently living there. If you own a home in Poland and are considering moving or returning to the UK, this guide will cover everything you need to know about selling property in Poland. This includes a step-by-step walkthrough of the selling process, along with associated fees, taxes, and legal requirements.
Is Now a Good Time to Sell in Poland?
The global economic climate, including the coronavirus crisis, has impacted housing markets worldwide. Despite Poland’s economy experiencing a recession in late 2020 for the first time in recent history, its housing market has continued to perform well.
Before the pandemic, Poland saw a rapid rise in house prices, a trend that continued through 2020 with house prices rising at the second-fastest rate in Europe. By October 2021, residential property prices had increased by a significant 45.5% since 2015. Apartments in major Polish cities, such as Warsaw, now command prices higher than in Brussels or Bologna.
Ultimately, the decision to sell should be based on thorough research of your local market, including house price growth in your specific location and the demand for your type of property.
The Process of Selling a Property in Poland – A Step-by-Step Guide
1. Find an Estate Agent – or Sell the Property Yourself
While using an estate agent is not mandatory, it can be a wise decision. A good agent possesses in-depth knowledge of the local market and can help sell your property faster and at the best possible price. They can also manage tasks like buyer viewings, which can be challenging if you are not in the country. Furthermore, an agent can assist in navigating the legal and administrative paperwork involved. However, you may also consider appointing your own conveyancing solicitor to handle the legal aspects.
When selecting an estate agent, exercise caution and conduct thorough research. To avoid scams, ensure the agent is licensed and adequately insured. Personal recommendations are valuable, but you can also find agents through the Polish Real Estate Federation, the main association for real estate professionals in Poland.
2. Market the Property
Once you’ve decided on your selling approach, it’s time to market your property to attract potential buyers. If you’re using an estate agent, they will typically handle most of this. If selling independently, ensure your property is listed on popular real estate websites and portals in Poland, such as:
- OTODOM.pl
- Morizon.pl
- Szybko.pl
- nieruchomosci-online.pl
- adresowo.pl
3. Sign the Initial Contract
Once you have an accepted offer from a buyer, the next step involves drafting and signing an initial contract. This process requires the services of a notary, with the cost typically borne by the buyer. Be aware that many notaries may only speak Polish, so you might need to ask the buyer to appoint an English-speaking notary or arrange for your own translator.
The notarial deed is the only legally binding form of contract in Poland, outlining all the details, terms, and conditions of the sale.
4. The Buyer Pays the Deposit
With the initial contract signed, the buyer will pay a deposit to secure the property. Deposits for residential property purchases in Poland are usually around 20%, which is higher than in some other countries. At this stage, both parties will agree on a completion date, and the notary will commence the necessary checks and searches.
5. Attend a Meeting to Sign the Final Contract
The final step involves a meeting with the buyer, notary, and respective conveyancing solicitors to sign the final contract of sale. The buyer pays the remaining balance of the purchase price, and you, as the seller, must present a document confirming that there are no outstanding loans or encumbrances on the property.
You will hand over the keys to the buyer, and the notary will register the sale, a process that can take up to 33 days.
How Long Does It Take to Sell Property in Poland?
The time it takes to sell a home in Poland varies based on your property’s location and market demand. Extensive price negotiations or unforeseen legal issues can prolong the process.
The buyer’s residency can also affect the timeline. Non-EU residents need to apply to the Polish Ministry of the Interior for a permit to buy real estate, which can take anywhere from two weeks to two months, potentially delaying the sale.
Can I Speed Up the Process?
To increase your chances of a quick sale, organize your documentation and appoint a conveyancing solicitor as soon as possible. The following tips can also help you sell your Polish property faster:
- Take professional-quality photos with good lighting.
- List your property online in as many places as possible, including exploring social media and other digital marketing methods.
- Consider uploading a video or virtual tour of the property; remote viewings have become more common since the pandemic.
- Deep clean and declutter the property, depersonalize it where possible, and stage each room for viewings.
- Consult local professionals for expert advice to set a realistic yet competitive asking price.
Fees and Taxes for Selling a Property in Poland
Understanding the costs involved is crucial. Here’s a breakdown of the main fees and taxes you need to budget for when selling property in Poland.
What Fees Will I Pay as the Seller?
The good news for sellers in Poland is that the buyer typically covers many of the fees, including the notary fee and the registration fee.
However, as a seller, you will still incur some costs, including:
- Estate agent fees: If you use an estate agent, expect to pay around 3% (plus VAT) of the final sale amount in commission. Negotiation is common in Poland, so feel free to haggle.
- Conveyancing solicitor fees.
- One-off fees for an energy performance certificate for the property, plus a certificate proving that no one is registered to live there.
Property Taxes for Sellers
In addition to fees, property sales generally involve taxes. In Poland, the primary property tax affecting sellers is capital gains tax, also known as property sales tax.
- Capital Gains Tax (CGT): CGT is only payable if you sell a property within five years of buying it. If you sell after this period, you are exempt from CGT and do not need to file a tax return for this sale. If you sell within five years, you may have to pay a property sales tax of 19%. There’s a possible exemption if you use the proceeds of the sale to purchase another property in Poland within three years.
- VAT: The only other tax to be aware of when selling property in Poland is Value Added Tax (VAT). The buyer pays this on the purchase of the property, but you may also have to pay VAT on some of your costs, such as the commission charged by your estate agent. The current VAT rate in Poland is 23%.
Transferring the Proceeds from Your Property Sale
When selling property in Poland, especially if you reside elsewhere, efficiently transferring the sale proceeds to your main bank account is important. It’s critical to find a cost-effective method for this large sum transfer, as traditional banks may impose high transfer fees and unfavorable exchange rates. Banks often add a mark-up to the mid-market rate, which is how they generate profit. Consider solutions that offer the real, mid-market rate and transparent fees for international transfers. Security is paramount when sending large amounts globally; ensure any service you use employs advanced security and anti-fraud measures.
Selling property in another country involves navigating a new system, including legal regulations, fees, and taxes. By understanding the costs, processes, and legal aspects outlined in this guide, you should be well-prepared to put your Polish property on the market and attract buyers. Remember to carefully choose estate agents and other professionals, researching their backgrounds and asking any necessary questions.
