[SPONSORED ARTICLE] Mr. Roman comes from Ukraine and would like to purchase a property in Poland. Unfortunately, the developer doesn’t want to sign a contract with him. The company is concerned about a long time of obtaining permission by Mr. Roman. Further problems come when he wants to get mortgage credit. This story is not an individual one. Purchasing properties by foreigners can be quite a complicated process. It requires a good action plan and appropriate documents.
Purchasing a property in Tricity
Mr. Roman would like to live in Tricity. This area is a part of a special “frontier zone” which applies to all cities within 15 km from the border. That’s why, to purchase a property in this area, a foreign citizen needs to apply for permission to the Ministry of the Interior and Administration.
After the buyer signs a purchase agreement, he should turn his steps to the ministry for permission to obtain a property. A person needs to hand in an application form, documents proving the legality of his stay and issue a payment of 1570 PLN. It is important to remember, that the ministry issues permission for a certain property.
What if a developer doesn’t want to sign a purchase agreement with us? It is not the end of our dreams, as there is an option of obtaining a Stand-By Arrangement from the ministry. With such a document, the buyer can prove he will get permission once he finds a property.
When is the permission not necessary?
The most important factor is the location of the property. If it is within 15 km from the border, the permission is necessary. This means one will need to go through the procedure if want to buy a property in the Tricity area. Those who want to purchase a property further from the borders, do not need to apply for a permit. As a result, the procedure for obtaining a house or a flat in Warsaw or Cracow is much easier.
Another common exemption is due to the country of origins. Citizens and entrepreneurs of the countries from the European Economic Area and Swiss Confederation do not need to apply for additional permission to purchase the property. Currently, this involves all countries of the European Union as well as Norway, Island, and Lichtenstein.
When the buyer does not need to apply for the permission, the procedures are much easier. As a result, those who purchase properties with cash can simply go to the notary to finalize the process. Different conditions apply though when a person would like to get a mortgage credit for a property.
Obtaining a mortgage credit
What requirements should a person meet to get the support of a bank in financing the property? First of all, the legal stay is crucial. The borrower needs to have valid documents proving the legality of his stay and work in Poland. What’s interesting, the country of origins is of secondary importance to banks. More important is the individual creditability. It’s also worth underlining, that banks issue the decision for a certain property.
Find help in the procedure
Mr. Roman is not the only foreign citizen who struggles with purchasing a property in Poland. The procedure may seem complicated and include a variety of parties including the Ministry of Interior and Administration. During the process, we may face conflicts in document requirements or problems with obtaining them.
The information above is just a drop in an ocean of what a foreign citizen should know when thinking of purchasing a property in Poland. Many find it practical to ask for additional help from people who deal with such cases on a daily basis. Such people are specialists from Phinance SA. They help to deal with all doubts and substantively assist their clients on each of the steps leading to getting a dream property in Poland.
We have created this article in cooperation with Phinance SA. If you would like to get help with purchasing a property in Poland, please contact English-speaking representatives of the company:
Michal Kulewicz – +48 695 349 812
Kamil Gerc – +48 696 006 786
Information source: Phinance SA