Real estate investment in Poland
Poland, the world's 22nd largest economy in terms of GDP, joined the European Union in 2004.
This politically stable country continues to develop rapidly as it is the leading European economy in terms of annual GDP growth (4.8% in 2017), and did not experience a recession during the 2008 crisis.
The cities of Warsaw, Kraków, Gdańsk and Katowice, for example, are extremely dynamic.
But why invest?
There are many advantages to investing in Poland.
1- Prices are still affordable (around €2,500 per m² for Kraków, the country's second largest city, for example), and rental yields are high.
2- The Polish tax system, which defies all competition (between 0 and 8.5% tax on rents depending on the type of property).
3- The costs inherent to real estate (property tax, notary, legal fees...).
4- No capital gain after 5 years
Preparing for retirement, having a second home for the holidays... Make a rental investment in Poland! An innovative, differentiating and much more profitable strategy. Make a rental investment to earn money every month. So many arguments that will motivate you to invest in real estate in Poland.
But not only that...
The Polish government is going to increase the Polish minimum wage to 4000 PLN gross by 2023 (see source). For 2020, it is now PLN 2600 gross compared to PLN 2250 gross in 2019.
LET'S TAKE A NUMERICAL EXAMPLE AND COMPARE!
The average price of a property in Poland
We'll take an attractive, student-friendly city for our comparison, Nantes. This city has about 630 370 inhabitants in the metropolis. Compared to Kraków, which has about 765,000 inhabitants. It is therefore a good example. Two very students and dynamic cities.
The Polish tax system
We will take the example of a new apartment, 2 rooms, 40m².
For taxes, we will use a basic model without tax optimization. In France, if you are subject to a marginal tax bracket of 41% + 17.2% social security contributions you will pay 58.2% tax on your net rent. In Poland, it is only 8.5%.
The property tax in France is different - many factors are taken into account in the calculation. In Poland the price is 0.25€/m² (1.075zl/m²).
The average price in Nantes is between €2,445 and €4,891 with an average of 3 261€ (see source). In Kraków, it is about 2 552.69€ on average.
The summary table is based on the above information, in practice, prices may be different, so we recommend you to contact us.
|Property of 40-45m²
||130 000 €
||80 000 €
|| De 1 à 3%
|| De 20 à 30%
|| 0€ (doesn't exist)
In addition to the purchase price, buying a property in Poland requires additional costs, such as those of the notary. Good news: they are very low, unlike in France. Notary fees represent several small taxes:
- Tax on civil law deeds.
- Notary fees.
- Land registry fee.