Buying property abroad from Poland: a step-by-step guide for Polish residents

Buying property abroad from Poland is the same transaction a local buyer makes, with three Polish twists. Polish banks rarely finance it. The money has to leave through the Polish banking system, with questions attached. And what the property earns, or what you make when you sell it, is taxed in Poland as well. This guide walks through the whole path in order. It is informational, not legal, tax or investment advice, and the figures that appear are indicative.

Start with the goal, not the country

The same budget buys very different things depending on what you want.

• Rental income. Look at net yield, not the headline. Our rental yield by country page puts the figures from our country guides side by side, with what each leaves out. Higher gross yields usually come with currency, licensing or vacancy risk.
• Capital preservation. Large, liquid Western European markets usually offer lower yields and more stability. See property prices per m² by country.
• A place to live part of the year. Climate, flight connections from Poland and running costs matter more than yield.
• A residence permit. This is a Polish-specific point: as an EU citizen you already have the right to live in other EU countries, so a purchase adds little there. Outside the EU the picture is the opposite. Buying in Thailand, for example, does not by itself give a right to stay; long stays are arranged with separate visas. In the UAE, residence routes tied to property exist but thresholds change, so verify them before you rely on them.

If you are not sure, use our country overview, the country comparison and the calculators to put two or three candidates on the same footing before you spend money on travel.

A note on the EU: in most cases a Polish citizen buys on the same terms as a local, but a few countries restrict second homes or ask for a permit. Check this for your shortlisted country before you pay a reservation fee.

What the budget must cover

The purchase price is only part of it. Plan for these lines on top:

• Transaction taxes and fees. They differ sharply. In Cyprus, transfer fees run on a 3%, 5% and 8% scale by price band, are waived if VAT was charged (a new build), and are halved on a VAT-exempt resale; VAT on new residential property is 19%, with a reduced 5% rate only for a main residence under conditions. In Dubai the Land Department fee is 4% of the price, plus a trustee-office fee and, on resales, a developer no-objection certificate. In Thailand the transfer fee is about 2% of the appraised value plus a specific business tax or stamp duty. See the country guides for current figures.
• Lawyer, translator and, where needed, a notary and apostille or legalisation of documents.
• Furnishing, management and service charges after the purchase. Our guide to the total cost of ownership abroad lists them.
• A buffer for the exchange rate: your income is in PLN, the price is in EUR, USD, AED or THB.

We deliberately do not give a single budget table: the numbers move, and a wrong table is worse than none. Build your own from the country guides, with a 10-15% margin for the unexpected.

The steps of a purchase

The order is similar almost everywhere.

1. Reservation. You sign a short agreement and pay a deposit to take the unit off the market. Ask in writing what happens to the deposit if the checks fail. 2. Due diligence. A local lawyer, working for you and not for the seller or the agent, checks the title, encumbrances, building permits, service-charge arrears and, for a new build, the developer's licence and how your money is protected. For off-plan purchases in the UAE, payments should go only to the developer's escrow account, and you can verify that account with the Land Department. 3. The purchase contract. In some countries a preliminary contract comes first and the final deed later, in others it is a single document. Read it in a language you understand; a certified translation is cheap compared to the amount at stake. 4. Payment. See below on currency and on how to send the money. Pay only to the account named in the contract, from an account in your own name, and never in cash. 5. Registration. The title is registered with the land register or equivalent, and you receive proof of ownership. Do not treat the purchase as finished until you hold it. 6. After the purchase: utilities, insurance, a management contract if you let it, and the Polish formalities described at the end.

Financing from Poland

Polish banks do not usually grant a mortgage secured on a property abroad. Three routes remain.

• Cash from savings or from selling another asset. Simplest, and what most buyers do.
• A mortgage loan in Poland secured on another property in Poland. A bank may lend against a Polish property and you can spend the proceeds on anything, including a purchase abroad. You carry the risk: if the foreign investment fails, your Polish home is the collateral.
• A loan from a bank in the country of purchase. Some foreign banks lend to non-residents, on their own terms, usually with a larger down payment, an income review and a local valuation. Terms differ by country and change; see our article on mortgages for non-residents.
• Developer instalment plans, common in off-plan markets, spread the payment over the build. They are not a loan, but they change when the money has to leave your account. Be careful with guaranteed-rent offers attached to them; see guaranteed rental schemes: the catch.

Currency: where the money is lost quietly

You earn in zloty and pay in another currency, so the exchange rate is part of the price. A bank converts at its own rate, which includes a margin; a currency exchange or a specialised transfer provider may charge less, and a foreign-currency account lets you pick the moment. Compare the effective rate, not the headline fee. On a large amount a fraction of a percent is more money than the whole transfer fee. For how to send the money, the documents the bank may ask for and the reporting rules, read how to send money abroad to buy property.

Buying remotely and the power of attorney

You can complete a purchase without travelling, but the structure changes. Typically you give a local lawyer a power of attorney, prepared according to the rules of the country of purchase and often signed before a Polish notary, with the apostille or consular legalisation that country requires and a certified translation. Check the exact requirements with the lawyer who will act for you. Limit the power of attorney to the specific unit, price and actions, and set an end date. Our article on buying property abroad remotely describes the safeguards.

The Polish side

Owning property abroad does not take you out of the Polish system.

• Rent. A Polish tax resident is taxed in Poland on income from all over the world. How the foreign rent is taxed depends on the double-tax treaty. See tax on foreign rental income for Polish residents.
• Sale. Selling within five years from the end of the year of purchase is taxed in Poland at 19%; after that it is not. Details in the same article.
• Reporting to the National Bank of Poland. A Polish resident whose foreign assets and liabilities exceed PLN 7 million must report them. Most buyers are below that, but check, especially if you also hold shares or accounts abroad.
• Tax residency. If you move your life abroad, the rules change; see tax residency when relocating.
• Documents. Keep the contract, proof of payments and the source of the funds. You will need them for the bank, for tax and for a future sale.

A short checklist before you pay a deposit

• Is my goal clear, and does the country fit it?
• Do I have a lawyer who works for me, and have I seen the title documents?
• Do I know the full cost of buying and of owning?
• Is the payment going to the account named in the contract, from my own account?
• Do I know how the rent and the sale will be taxed in Poland?
• Have I reserved a buffer for the exchange rate and for the unexpected?

FAQ

Can I get a mortgage in Poland for a flat abroad? Not secured on the foreign flat, as a rule. You can borrow against a Polish property or use a foreign bank. Is it easier to buy in the EU? Often yes, because of the common rules and the absence of a residence question, but each country has its own costs and procedures. Do I have to tell the Polish authorities that I bought abroad? There is no general register for this; the income is declared in your tax return, and a very large holding falls under the National Bank of Poland's reporting. Can I buy without going there? Yes, with a power of attorney and a trusted local lawyer, but not before you have seen the documents. Should I pay a deposit before the checks? Only if the contract says in writing that it is returned when the checks fail.

How we help

We shortlist countries to your goal, model net returns on your own assumptions, and coordinate local lawyers and managers. This page is informational only and is not legal, tax or investment advice; figures and rules change, so confirm them with a licensed adviser before you act.