Additional property costs you need to keep in mind

Costs associated with property searching

Although searching for your dream property is usually associated with browsing listings on a few popular portals, not all offers are always there. Some are spread by word of mouth, and others are shared only between real estate agents who use common listing databases.

Once a specific rate is set, usually expressed as a percentage of the transaction amount, the agent will begin searching for "off-market" offers that match your criteria. Of course, this is not a mandatory cost, as you can find a suitable apartment on your own, but if you have very specific requirements and have already browsed all the portals several times, it is worth considering this solution.

Notary fees

Notary fee is the notary's remuneration for drafting the sales agreement, specifically the notarial deed. The amount of fees incurred is regulated by relevant laws. The cost of the fee depends on the transaction price of the property and is as follows:

The above rates are net amounts, so 23% VAT must be added to them.

When buying an apartment, you are really only interested in the last three brackets. The rest apply more to the separate purchase of a parking space in an underground garage or a storage unit.

How much will the notary fee be for an apartment worth 800,000 PLN?

1,010 PLN + 0.4%*(800,000 PLN - 60,000 PLN) = 1,010 PLN + 2,960 PLN = 3,970 PLN net (4,883.10 PLN gross)

The amount of the fee also depends on the notary — the above list shows maximum rates. Most people have no idea about this and think that this is exactly what it must cost. It is in the notary's interest to earn as much as possible, so they use the maximum rates and are unlikely to mention a discount. However, you can try to negotiate — it's always worth a try, you have nothing to lose.

Copies of the notarial deed are copies that have the same content and legal force as the original. However, it is not enough to make photocopies at the nearest copy shop or on a home printer. Each page will be stamped and signed by the notary. Regardless of whether you need an extract, a copy, or an excerpt from the notarial deed, the maximum rate is 6 PLN for each started page, with a page defined as text comprising no less than 25 lines. Of course, this is a net rate, to which VAT must be added.

Usually, 3-4 copies are needed. For the buyer, the seller, the Land and Mortgage Register Department of the District Court, and the bank.

3 extracts * 10 pages * 6 PLN = 180 PLN net (221.40 PLN gross)

Costs amount to at least several thousand zlotys, so beware of suspicious proposals from the seller, such as buying a property without a notarial deed. This is an attempt at fraud. While a preliminary agreement may, but does not have to, be concluded before a notary, the actual property sales agreement is invalid without the notarial form.

Court fees

In the case of buying a new apartment from a developer, you must establish a land and mortgage register, register yourself as the owner, and establish a mortgage in favor of the bank, which serves as its security. You will handle all of this in court, but as you might have guessed, the taxes you pay won't help, and once again you have to reach into your pocket. Fortunately, the rates are fixed:

• Creation of a land and mortgage register: 100 PLN.
• Land and Mortgage Register ownership entry: 200 PLN.
• Mortgage entry in favor of the bank: 200 PLN.
• Tax on civil law transactions (PCC): 19 PLN or 0.1% (rare case).

If you don't feel up to it or simply don't want to handle it yourself, you can pay an additional fee to have the notary take care of the formalities for you.

Taxes

Since I mentioned taxes, you should also keep in mind the tax on civil law transactions for the purchase of real estate, known as PCC. The tax rate is 2% of the value of the house or apartment. This amount is collected directly by the notary when signing the notarial deed. It’s best not to forget to bring enough cash, as you simply won't be able to pay by card.

This is because card payment processors deduct a certain percentage from every transaction. The notary will not cover the difference out of their own pocket. Therefore, you will need to pay in cash or via bank transfer before signing the deed.

The two-percent tax rate applies to transactions on the secondary market. You will not incur this cost on the primary market.

Let's take a look at a summary of the costs for an apartment worth 800,000 PLN (gross amounts).

Assuming you take out a mortgage with a 20% down payment, instead of 160,000 PLN, you need to prepare nearly 200,000 PLN.

Also, remember that you have just bought the apartment and haven't done anything to it yet. So, be sure to set aside a budget for renovations or finishing. I won't analyze that here, as it is a very individual matter.

In addition, there may be extra costs associated with the mortgage itself, such as a loan origination fee (e.g., 2%), upfront insurance payments, and several others, but we will cover those in a separate article.