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Poland
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%
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About Poland
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%
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