Buying a property in Poland is much like any other place – there are always additional fees to pay.
There are various additional payments and they depend on whether you’re buying from primary or secondary market. Let’s see how it looks like, shall we?
The basic payments related to buying a property from primary market are the following:
- Taksa notarialna (notary fee) – depends on the purchase price and the rule has been confirmed by Minister of Justice (Dz.U. 2004 nr 148 poz. 1564) on how to calculate it, but notaries often will offer you more favourable rates.
- Odpis aktu notarialnego – (a copy of a notary’s deed) – we usually need 1 or 2 of them and each notary can set their own price (6-20 zl per page)
- Otwarcie księgi wieczystej – if your property doesn’t have the Land and Mortgage Register, opening one costs 60 zl
- Wpis prawa własności w księgę wieczystą – the registration of ownership right in the Land and Mortgage Register – it’s a fixed charge of 200 zl.
When buying from secondary market, you might expect the same charges as when buying from primary market:
- Taksa notarialna (notary fee) – determined by notary
- Odpis aktu notarialnego (copy of a notary’s deed) – determined by notary
- Wpis prawa własności w księgę wieczystą (the registration of ownership right in the Land and Mortgage Register)
Some additional costs are:
- Podatek od czynności cywilnoprawnych (PCC) – the tax on civil law transactions is borne by the buyer and amounts to 2% of the transactions. Good news is, this tax is usually paid to Notary and they are responsible for notifying the tax office – less work for you!
- Real estate agent fee – only if you use their services, of course. The fee is usually 3% net + 23% VAT from the purchase price, but can be negotiated in special circumstances.
Most properties on secondary market have got an ownership entry in the Land and Mortgage register so that’s one payment you won’t have to worry about. But you should be aware that some properties may not have that and then you will be required to open the register. Make sure you ask about it somewhere on the way.
How to calculate the notary fee?
Property worth between 60,000 – 1,000,000 zl
1,010 zl + 0.4% of the value over 60,000 zl + VAT 23%
Property worth between 1,000,000 – 2,000,000 zl
4,770 zl + 0.2% of the value over 1,000,000 zl + VAT 23%
Property worth more than 2,000,000 zl
6,770 zl + 0.25% of the value over 2,000,000 zl but not more than 10,000 zl + VAT 23%
For example: if your property costs 200,000 zl, you will pay 1,010 zl + 0.4% of 140,000 zl (1,570 zl) + VAT 23% = 1,931 zl.
What is more expensive, primary or secondary market?
Let’s compare the additional costs when buying an apartment for say 300,000 zl and assuming that we negotiated the agent’s fee to 2 %.
|Costs||Primary market||Secondary market|
|Real estate agent fee||x||6,000 zl|
|Tax on civil law transactions (CPP)||x||6,000 zl|
|Notary fee||2 423 zl||2,423 zl|
|Registration of ownership right in the Land and Mortgage Register||200 zl||200 zl|
|Establishing the land and mortgage register||60 zl||x|
|2,683 zl||14,623 zl|
Note: These costs are only calculated based on the idea that you’ve got money for the property and you’re not interested in a mortgage loan. If you are, there will be additional costs related to the loan itself, but we are no experts to tell you about it. If you would like a contact to a good financial adviser – let me know! I might have someone for you 🙂