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Old Krakow was not built in a day
(Polish proverb)
Real estates in Krakow
and the city's Property Market.
Citizens of the European Union, Iceland, Norway and
Liechtenstein are free to purchase and own any real estate
in Poland except farmland and forests. Other aliens can buy
residential property, i.e. apartments or houses with plots
up to 0.4 hectare (about an acre) in urban areas, with the
intent to take up residence in the country and they should
make a pledge that it will be their fixed abode and they do
not own other domicile in Poland. All foreigners may also
inherit any property. Otherwise acquisition of real estate
by an alien requires authorization from the Ministry of
Internal Affairs, easily obtainable in most cases. It
applies to individuals as well as companies whenever
foreigners hold the controlling interest. Furthermore,
non-EU aliens need similar permission to take over 50
percent share
or more of an enterprise having real estate among its
assets.
On application the Polish Ministry of Internal Affairs
issues ‘permit promises’, valid six months, to aliens and
foreign-controlled corporations that want to shop for a real
estate in Poland. Subsequently, government officials may not
deny the permit for an acquisition made under conditions set
by the promise and before its expiration date.
Buying Property in Krakow.
Krakow is the second most important real estate market in
Poland (after Warsaw, the country's capital city) and the
most attractive city to live in. Foreign
investors have snapped up about 70 percent of flats for sale
in the most attractive Old Town central district or close to
it .
As regards
residential property
Krakow’s quality apartments in a decent neighborhood sell at
euro 2,150 or so per square meter, while flats in Krakow at
the market’s lower end cost even a third of that.
An average price of a new flat at the Old Town hovers around
3,550 euro per square meter, compared to euro 1,900
elsewhere in downtown Krakow, and under 1,500 in Nowa Huta
district. Three-bedroom houses are priced anything between euro
120,000 and 600,000 accordingly to their quality, state of
repair, location, etc. And you may have a downtown tenement
house for a couple of millions euro or even a centuries-old
palace in
the historical city center
for ten million euro or so.
As regards residential land building lots in Krakow sell on
average at euro 89 per square meter but there is a wide range:
from roughly 40 euro on the outskirts of the city to
1000-plus euro in most attractive neighborhoods. And land
prices in the very city center may look exorbitant
indeed. Commercial land in averages euro 500 in downtown
Krakow and EUR 175 in the outskirts.
Beyond the city limits building plots cost between 150 euro and
400 euro per square meter. Farmland prices in the Krakow region
average euro 2,500 per hectare.
Krakow is also a rewarding market for
commercial property,
from retail to office to industrial facilities.
Note:
Poland's land registry,
including Krakow, may be found online at
http://ekw.ms.gov.pl Everybody can access the database free
of charge as long as he or she knows the land registry
number given to the property in question. The service is
available in Polish.
Krakow's property tax
Property tax in Poland has been introduced as one of local
taxes.
It's paid yearly and the amount depends on the size of
the real estate regardless of its market value. Each
municipality decides the rate of the property tax for
estates situated within its boundaries though it cannot
exceed the upper limit set by the country's law.
Krakow’s
City Council has established different rates of
the property tax for various kinds of real estate. Flats and
dwelling houses together with the rest of
residential property are taxed rather lightly at
as little as 0.77
zloty
per square meter of the living quarters. Conversely, in 2018 the basic rate for
commercial property has been set at 23.1 zlotys
per square meter. On the other hand, businesses such as bakeries,
bakeshops, and slaughterhouses have been awarded the
property tax of mere 11.55 zlotys per square meter.
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