Selling costs in Poznan, Poland

Hi all,

Hope this is in the right place.

I’m considering selling an apartment which I bought in Poznan 7 years ago. I’m just trying to work out what I’m likely to make on it and the associated costs in selling an apartment. I bought the studio for approx 35000EUR and am likely to sell for approx 50000EUR

Can someone give me a ballpark figure as to what standard management fees are likely to be (if there are any)? Will I have to pay capital gains tax? If so, how much? Any other costs that I’m not thinking of?

As you can probably guess I’m a complete novice at this game, bought the place when I was still in college and have ignored it since!

Thanks

Hi,

I will try to answer some of the queries here, although my experience has been in buying a place in Poland rather than selling.

CGT is 19%. For management fees, I am going to presume you have someone (an agency?) looking after the place, or renting it out for the past few years? In that case, management fees would be incurred on a monthly basis as part of their fee, I would have thought.

For the ‘official’ act of selling, it would need to go through a notary, and more than likely through an interpreter/translator also, so that there is a cost there. However, I would not expect that to be more than a few hundred quid. Depending on how you are selling, you might be going through an estate agent and they will charge based on a % of selling fee. however, you might also be able to do a deal that the buyer pays the EA’s fee, but you’re probably aware of such options.

There might be one or two other charges, but nothing major I can think of. I would suggest to check with our resident Polish user September, as he may be able to give more specific advice.

First of all seek professional advice, you will need a solicitor that specializes in real estate transactions. He will guide you through taxation in Poland. If you kept house for certain amount of years you may be able to avoid any taxes in Poland also if you plan to spend sales proceeds on another property there might be a discount. In last 7 years there were plenty of modification to taxes on capital gains from property. Equivalent of stamp duty is usually paid by buyer

Estate Agents are much less regulated in Poland then here and law obliges them to be ethical and puts very little responsibility on them. We would avoid them if possible, as often they will force you sign agreement that they will collect fee even if you sell without their help. Have a solicitor review any agreement with estate agent.

It is very important you find some professional lawyer to help you with transaction, as it is technically possible to lose ownership of property without getting any money in exchange. If apartment was rented and tenants are still living there it may be very difficult to get them removed.

If management fees have not been paid for 7 years, then you might be in trouble. They are quite high 50-100E per month.

Last but not least you might be liable for tax in Ireland and you must get it clarified with tax advisor in Ireland. Revenue offices have no problem exchanging information.

@larry Murphy hi, I’ve a few questions about your sale of apartment in poznan in 2011. Just wondering if you sold it? I’ve got one to sell and am looking for some general advice on the sale process. If you could let me know how you got on and any pitfalls I should avoid.