Investeren in onroerend goed in Polen

General Facts

Total geographic area: 312,685 sq km
Population: 38,635,144 (July 2005 est.)
35% under age 25
GDP: $489.3 billion (2005 est.)
GDP growth: 4% (2006 est by Merrill Lynch)
Inflation Rate: 3.4% (2005)
Unemployment: Nationally 17%,
Warsaw 3%

Due to the high levels of education
Foreign Direct Investment (FDI) into
Poland was US$10 billion in 2005.
In 2006 Poland can avail of US$23
billion of EU Structural Funds.

General Financial

Tax Base (PLN)       Tax %
0 - 37,024              19%
37,025 - 74,048      30% of base exceeding PLN 37,024
74,049 & over      40% of base exceeding PLN 74,049

• Capital Gains is 10% of the new resale price. However if the real estate is sold more than 5 years after it was purchased the capital gain is exempt from tax. If the individual decides to reinvest the gain in Polish property no tax is payable but the 5 year cycle begins again.

• VAT on property is currently 7% which is included in property pricing. The Polish government may increase this rate to 22% in 2008 but this is not a certainty.

• Corporation tax is 10%

• There is a double taxation agreement in place between Poland and Ireland.

The Property Market

The Polish residential market currently consists of approximately 12 million units with demand outstripping supply by 1.7 million units in 2006. This shortfall will mainly be in the Warsaw area. The
demand for property is being driven by domestic demand and not foreign
investors.

• Depending on location the Warsaw property market appreciate in value at 10%-25% in 2005. This is likely to
increase in 2006.

• The number of households with one member is to increase from 3.3 million to 5.1 million by 2030.

• The population of Warsaw is expected to increase from 1.7 million to 4 million over the next 10 years.

• Currently only 18% of property in mortgaged nationally. Poles can now avail of 100% Loan to Value mortgages and this is creating a upsurge in demand.

• Average rental yields in Warsaw are 6.8%