How to send money abroad to buy property: a guide for Poland-based buyers

Moving a large amount of money out of Poland to pay for a flat abroad is not difficult, but it is the step where buyers lose time and money: a bank freezes a transfer until the source of funds is explained, a developer rejects a payment because the sender's name does not match, or a poor exchange rate costs more than the lawyer. This guide covers how the transfer works, what a Polish bank will ask, the rules in Thailand, Dubai and Cyprus, and which reporting duties really apply to a Polish resident. It is informational, not legal or tax advice, and rules change.

Two ways to send: SEPA and SWIFT

Within the euro area, an ordinary euro transfer goes as a SEPA payment: quick and cheap. For other currencies, or for a country outside SEPA, the money goes as a SWIFT transfer, which can carry fees from your bank and from intermediary banks along the way. The effect is that the amount arriving can be lower than the amount sent. Ask your bank which fee option it offers so that the full amount arrives, and agree with the seller or developer who bears the fees. If the contract states a price that must arrive net, put that in writing.

The exchange rate is the larger cost

Polish residents usually pay in a foreign currency while earning in zloty. A bank converts at its own rate, which includes a margin. A currency exchange or a specialised provider may offer a narrower margin, and a foreign-currency account lets you convert earlier, at a time you choose. Compare the effective rate you would get for the whole amount, not the headline fee; on a large transfer a small difference in the rate is more money than the transfer fee. We do not quote spread figures here because they differ by bank and by day.

What a Polish bank will ask

Banks in Poland are legally obliged to ask about the source of funds, under anti-money-laundering rules that follow the EU directives. A large transfer abroad, or a large amount arriving in the account before it, is the kind of transaction that triggers questions. The media often cite about EUR 15,000 as the amount at which attention increases; that is not a legal threshold, only a common practice. If you do not answer, the bank can refuse the transaction or block the account.

Prepare the documents before you place the order:

• The contract for the purchase, with the price, the seller and the account details.
• Proof of where the money came from. For savings: statements and, for income, employment or business contracts and tax returns. For a sale of another property: the notarial deed of sale. For a gift: the donation agreement and the transfer.
• Your passport or ID, and, if asked, a note on the purpose of the payment.

The easiest path is the one where the whole trail is visible: your income, your account, the payment. Money that has passed through several accounts, or that arrived in cash, is slow to explain.

The money must come from your own account

Almost every seller, developer and registry wants the sender to be the buyer. In Thailand the name on the transfer must match the buyer's passport name and the purchase contract exactly; a missing middle name can lead the Land Office to reject the proof. In Dubai, pay a developer only into the escrow account that the Land Department confirms for the project, and keep your own name on every payment. Do not pay through a friend's, an agent's or a relative's account to save time. It is the commonest cause of a payment that cannot be recognised later, and it can turn into a problem with the title.

Never pay in cash. Carrying EUR 10,000 or more in cash across the EU border must be declared to customs, and in any case cash cannot be tied to the purchase.

Thailand: the FET form

Thai law requires a foreigner who buys a condominium in their own name to bring in the money from abroad in foreign currency. The Thai bank that receives the transfer converts it into baht and issues proof for the Land Department. For an inbound transfer of USD 50,000 or more this is the Foreign Exchange Transaction form, known as FET or Thor Tor 3; for smaller amounts the bank issues a confirmation letter that is accepted in its place. Practical points:

• Send the money in foreign currency to a Thai bank account, not in baht and not from a Thai account.
• State the purpose in the transfer instruction, for example the purchase of a named unit in a named project. Vague wording is not enough.
• Make sure the sender's name matches the passport and the contract.
• Keep the FET or the letter safe: without it the unit cannot be registered in your name as foreign freehold.

See our Thailand buying guide for the quota, the transfer costs and the risks of land and leasehold structures.

Dubai: escrow and the right account

Off-plan purchases are paid in instalments into the developer's escrow account for that project. Check the account on the Land Department's website before the first payment, and do not accept a request to pay to another account because of a supposed change. The Land Department fee is 4% of the price, and a trustee-office fee and, on resales, a developer no-objection fee come on top; broker sources give amounts, which should be confirmed before you budget. Keep your name, as in the passport, identical on the contract and on every payment. See the Dubai yield and cost guide.

Cyprus: transfers, banks and source of funds

In Cyprus, payments go by bank transfer and you should keep every receipt: they matter for the anti-money-laundering checks and, if you later apply for a residence permit, for the evidence of investment. Local banks and lawyers check the source of funds as strictly as Polish banks do, so the documents above will be asked for twice. Costs depend on whether the property is a new build with VAT or a resale: transfer fees run on a scale of 3%, 5% and 8% by price band, are not charged where VAT was paid, and are halved on a resale outside VAT. Currency conversion costs can be high on deposits sent from abroad, so compare before the first transfer. See the Cyprus yield and cost guide.

What a Polish resident must report

We looked for the duties that apply to an individual, and found two.

• National Bank of Poland (NBP). Under the Foreign Exchange Law, a Polish resident whose foreign assets and liabilities together exceed PLN 7 million is obliged to report to the NBP. Real estate abroad, shares in foreign companies, foreign loans and similar items count. The report is electronic, requires registration in the NBP reporting system and is filed within 20 working days of the end of the period. For spouses in a community of property the threshold applies to both together. Most buyers are well below it, but a large purchase combined with other foreign holdings may cross it. How the property is valued for this purpose and which periods apply, we could not confirm; ask the NBP or your adviser if you are near the limit.
• Tax. The income from the property is declared in your Polish tax return, as described in tax on foreign rental income for Polish residents. A sale is reported on PIT-39 within the five-year rule.

We did not find any other personal duty to notify the Polish tax authority of owning property or an account abroad. That is a statement of what we found, not a guarantee that none exists; if your situation is unusual, ask your adviser.

Gifts and loans as the source of funds

If part of the money comes from your parents or another close relative, a gift from the closest family is exempt from Polish gift tax if you report it on the SD-Z2 form to the tax office within six months of receiving it. Pay it by bank transfer, so the trail is visible, keep the donation agreement and the SD-Z2 confirmation, and show them to the bank. A loan from a person should be in writing, with the amounts and the dates. A loan secured on a Polish home is one route for the money; see our guides on mortgages for non-residents and on the whole purchase from Poland.

A practical order of work

1. Choose the contract and the payment schedule, and ask the lawyer which account each payment goes to. 2. Collect the proof of the source of funds before the first transfer. 3. Open or check a foreign-currency account if you want to control the timing of the conversion. 4. Compare the effective exchange rate and the transfer costs. 5. Send a small test transfer to the same account if the bank allows it, and check it arrives under your name. 6. Send the main payment, keep the confirmations, and send them to your lawyer. 7. Note the total foreign holdings in case you approach the NBP limit.

FAQ

Will my Polish bank block a large transfer abroad? It may ask questions first and can refuse if you do not answer; having the documents ready avoids delay. Is there a legal amount above which the bank always asks? No fixed single amount; EUR 15,000 is a common practice figure, not a legal one. Can a relative send the money for me? Better not; the sender should be the buyer. Do I need an FET for a flat in Thailand? Yes for a foreign-owned condominium, or the bank's confirmation letter under USD 50,000, and the money must come from abroad in foreign currency. Do I have to report a purchase abroad to the NBP? Only if your foreign assets and liabilities together exceed PLN 7 million. Is a gift from my parents taxed? Not if it is within the closest family and reported on SD-Z2 within six months.

How we help

We tell you in advance which account each payment goes to, check that the names and the purpose of the transfer match the contract, and coordinate the lawyer and the bank. This page is informational only and is not legal, tax or investment advice; rules and thresholds change, so confirm them with your bank and a licensed adviser.