FAQ

• - Professional service and staff will be there to guide you through the entire purchase, sale or rental process
• - We are a one-stop shop, in that we can help with our network of affiliated professionals involved in sourcing finance, legal advice, translators, architects, interior designer and builders.
• - Connection to a network of agents giving you access to a large pool of pre-selected properties to purchase and also providing you with the best chances to sell or rent your property.
• - Local knowledge, impartial advice as to the best areas to buy in and avoid
• - Post sale support and services to help you with your new purchase, including property management.

We always sign representation agreements with our clients that state what we are going to do for you, and how much we will charge. Below you will find our fee structure, but in some cases, fees are negotiable, depending on different circumstances. Following the conclusion of a contract, we will prepare an invoice based on the amount agreed in the representation agreement. Our fees are always subject to Polish VAT, charged at 22%. We cannot accept cash payments without an invoice or the levying of VAT.

Buying

Our standard fee charged to buyers is 3% of the property’s contract price. If a property has a particularly high value, or the buyer is a trusted client, then discounts can be agreed.

Selling

Our standard fee to sell a property is 3% of the property’s contract price. Again, if a property has a particularly high value, or the buyer is a trusted client, then discounts can be agreed. In addition, PKG will be willing to accept a lower percentage fee if we are given exclusivity for a period of time on the selling of the property, and it is not placed with other agents.

Renting

Our fees for both owner (landlord or lessor) and tenant (lessee) are the same.

• - If a six-month (or shorter) lease is agreed, then PKG real estate will charge a fee equal to half of one month’s rent.
• - If a lease of longer than six months is agreed, then PKG Real Estate will charge a fee equal to one month’s rent.

*Prolongation of leases with the same tenant will incur a fee equal to half of the initial payment.

By air

The rise of Krakow as a tourist hotspot has been accompanied by a marked increase in direct flights to the city’s airport in Balice, 11km to the west of the city centre. It has recently been renamed Krakow Airport, presumably to make this easier for foreign guests than the previous title, “Miedzynarodowy Port Lotniczy im Jana Pawla Krakow Balice” The website, with Polish and English versions, can be found here: http://www.lotnisko-balice.pl/

Travelers are now spoiled for choice when it comes to choosing the cheapest and most convenient flights.

Many European national carriers, including British Airways ( www.ba.com ), LOT ( www.lot.com ), Czech Airlines ( www.csa.cz), Austrian Airlines (www.aua.com), Aer Lingus (www.aerlingus.com) and Lufthansa (www.lufthansa.com) offer regular direct flights to Krakow from a range of European destinations.

In addition, low-cost airlines have embraced Krakow in the past few years.

As at mid-2008, the following low-cost airlines offer direct flights to and from Krakow with destinations listed:

• www.EasyJet.com – from Belfast, Bristol, Dortmund, Edinburgh, Liverpool, London (Gatwick and Luton) , Newcastle and Paris.
• www.Ryanair.com – from Birmingham, Dublin, East Midlands, Edinburgh, Glasgow Prestwick, Liverpool, London Stanstead, Milan and Shannon.
• www.CentralWings.com – Amsterdam, Athens, Barcelona, Bolognia, Lille, London Gatwick and Rome.
• www.Norwegian.no/ - Oslo, Bergen, Stavanger and Trondheim.

The above list is not complete, but current information can be found on the Krakow airport site, address listed above.

*German Wings and Sky Europe are no longer flying from Krakow, but still fly from Katowice,

Katowice airport (www.gtl.com.pl/eng/index.html) is approximately an hour and a half from Krakow via mini-bus, and can be a cheaper option to get to Krakow, with a wider range of European destinations.

From the airport to the town centre:

Balice airport is only 11km from the city centre. A taxi-ride should take no longer than 20-30 minutes, depending on the time of the day and cost no more than 50-60 PLN (approximately €15) during daylight hours, and around 80 PLN at night. Calling a taxi from the airport (e.g. Barbakan, 12 9661) is also recommended, as some taxi drivers have been known to rip off unsuspecting foreigners, though thankfully this is rare.

Two public buses (numbers 194, 208) service the Krakow city centre from Balice Airport. Tickets cost 2.50 PLN and you will need to buy larger bags/suitcases a ticket as well. Bus drivers will roll their eyes and probably refuse to accept large banknotes. They will definitely refuse any currency other than Polish zloty. Travel time to the city centre is approximately half an hour and the bus can be overcrowded.

Since 2006, there has been a train service linking the airport and the city centre. The train station at the airport is approximately 200m from the arrivals terminal and a shuttle bus operates regularly. The trip to the city takes approx 15 minutes, and the price per ticket is approximately 6 PLN. The terminus in Krakow is the central train station, adjacent to the new Galeria Krakowska shopping centre, and only five minutes walk from the old town centre. From the city centre to the airport, trains normally leave every half an hour.

By rail:

Krakow is well-served by European rail connections. Warsaw is two and three quarter hours away via an express train which leaves approximately hourly during the day (no stops), Tickets cost just under 100 PLN one-way. There are often weekend specials which will halve the cost for a return trip. There is a slower train to Warsaw which takes approximately 5 hours and costs approximately half as much. It will stop at a lot of destinations in between Krakow and Warsaw, such as Kielce and Radom.

Budapest, Vienna, Prague and Berlin are all approximately eight hours away via rail. There are also connections to destinations such as Moscow, Odessa (on the black sea in Ukraine) and Bucharest.

In general, domestic Polish trains are slow but punctual. The main train station (Dworzec Glowny) is a short walk to the NW of the market square.

By bus:

Extensive regional, national and international bus networks operate through Krakow. The central bus station is next to the central train station and can be accessed by walking through to the opposite side of the tracks (past platform 5).

By air

The rise of Krakow as a tourist hotspot has been accompanied by a marked increase in direct flights to the city’s airport in Balice, 11km to the west of the city centre. It has recently been renamed Krakow Airport, presumably to make this easier for foreign guests than the previous title, “Miedzynarodowy Port Lotniczy im Jana Pawla Krakow Balice” The website, with Polish and English versions, can be found here: http://www.lotnisko-balice.pl/

Travelers are now spoiled for choice when it comes to choosing the cheapest and most convenient flights.

Many European national carriers, including British Airways ( www.ba.com ), LOT ( www.lot.com ), Czech Airlines ( www.csa.cz), Austrian Airlines (www.aua.com), Aer Lingus (www.aerlingus.com) and Lufthansa (www.lufthansa.com) offer regular direct flights to Krakow from a range of European destinations.

In addition, low-cost airlines have embraced Krakow in the past few years.

As at mid-2008, the following low-cost airlines offer direct flights to and from Krakow with destinations listed:

• www.EasyJet.com – from Belfast, Bristol, Dortmund, Edinburgh, Liverpool, London (Gatwick and Luton) , Newcastle and Paris.
• www.Ryanair.com – from Birmingham, Dublin, East Midlands, Edinburgh, Glasgow Prestwick, Liverpool, London Stanstead, Milan and Shannon.
• www.CentralWings.com – Amsterdam, Athens, Barcelona, Bolognia, Lille, London Gatwick and Rome.
• www.Norwegian.no/ - Oslo, Bergen, Stavanger and Trondheim.

The above list is not complete, but current information can be found on the Krakow airport site, address listed above.

*German Wings and Sky Europe are no longer flying from Krakow, but still fly from Katowice,

Katowice airport (www.gtl.com.pl/eng/index.html) is approximately an hour and a half from Krakow via mini-bus, and can be a cheaper option to get to Krakow, with a wider range of European destinations.

From the airport to the town centre:

Balice airport is only 11km from the city centre. A taxi-ride should take no longer than 20-30 minutes, depending on the time of the day and cost no more than 50-60 PLN (approximately €15) during daylight hours, and around 80 PLN at night. Calling a taxi from the airport (e.g. Barbakan, 12 9661) is also recommended, as some taxi drivers have been known to rip off unsuspecting foreigners, though thankfully this is rare.

Two public buses (numbers 194, 208) service the Krakow city centre from Balice Airport. Tickets cost 2.50 PLN and you will need to buy larger bags/suitcases a ticket as well. Bus drivers will roll their eyes and probably refuse to accept large banknotes. They will definitely refuse any currency other than Polish zloty. Travel time to the city centre is approximately half an hour and the bus can be overcrowded.

Since 2006, there has been a train service linking the airport and the city centre. The train station at the airport is approximately 200m from the arrivals terminal and a shuttle bus operates regularly. The trip to the city takes approx 15 minutes, and the price per ticket is approximately 6 PLN. The terminus in Krakow is the central train station, adjacent to the new Galeria Krakowska shopping centre, and only five minutes walk from the old town centre. From the city centre to the airport, trains normally leave every half an hour.

By rail:

Krakow is well-served by European rail connections. Warsaw is two and three quarter hours away via an express train which leaves approximately hourly during the day (no stops), Tickets cost just under 100 PLN one-way. There are often weekend specials which will halve the cost for a return trip. There is a slower train to Warsaw which takes approximately 5 hours and costs approximately half as much. It will stop at a lot of destinations in between Krakow and Warsaw, such as Kielce and Radom.

Budapest, Vienna, Prague and Berlin are all approximately eight hours away via rail. There are also connections to destinations such as Moscow, Odessa (on the black sea in Ukraine) and Bucharest.

In general, domestic Polish trains are slow but punctual. The main train station (Dworzec Glowny) is a short walk to the NW of the market square.

By bus:

Extensive regional, national and international bus networks operate through Krakow. The central bus station is next to the central train station and can be accessed by walking through to the opposite side of the tracks (past platform 5).

The purchase costs vary according to the price of the property, with relative costs as a percentage of purchase cost decreasing the more expensive the property is.

Stamp duty 2%

This charge only applies to secondary market purchases. If you are buying on the primary market (i.e. a new build apartment from a developer), then instead the price will include VAT charged at 7%.

Note – if you also buy a garage or parking space in a new development, VAT is charged at 22%, a different rate to that of the apartment

Notary fees 1-1.5%
The cost of the notary will vary depending on whether there is only one contract (a final contract) or also a preliminary contract. The cost of the notary agreement is normally flexible, and should be negotiated.
The payment made to the notary will comprise several different costs:

• - The cost of the notary, which can be negotiable.
• - Court fees: up to 1000 PLN for the notary to register a new mortgage book entry for the apartment and the buyer, which will result in the issue of title deeds to the property.
• - Cost of copies of the notarial act. In the case of a preliminary contract, the minimum number of copies required will be two, one for the buyer and one for the seller. If the buyer is applying for a mortgage, then a further copy will be required by the bank. In the case of a final contract, then there can be up to 7 copies required. One for the buyer and one for the seller, plus copies provided to the court (for registration, as per above), the tax office and the city office (as foreigners buying property need to be specially registered).
• - Here is a breakdown of the notary costs for a recent transaction. The cost was for a final contract on a new build property valued at 300 000 PLN.
  Notary Cost 1400 PLN + 22% VAT (1708 PLN)
  Court costs 720 PLN
  Copies of Contract, 7 x 42 PLN (294 PLN)
  TOTAL = 2722 PLN
  In this case, there was also an earlier preliminary notary contract, which cost less, approx 2000 PLN.

Agency fees 3% (negotiable)

Most Polish real estate agencies have a commission charge of around 3% on the purchase of residential property. Sometimes this fee is negotiable, depending on the value and complexity of the transaction.

Other costs:

Lawyer: approximately 250-350 PLN per hour

The notary is an impartial intermediary between the buyer and the seller, and does not represent the specific interest of the buyer, apart from adhering to the laws in Poland. Therefore, many investors choose to add an extra layer of security by employing a lawyer to check contracts for them before signing. This should not be more than a few hours work for the purchase of a residential apartment, including a consultation. Larger investments will naturally take more time.

Most of the transactional costs are covered the purchaser. Selling costs should only involve the agency fees at up to 3% of the sales price agreed. A lawyer may be required to advise on the contract to be signed, an additional cost. There will be Capital Gains Tax (CGT) to pay if a profit has been realized on the sale. See below for more information about CGT in Poland.

The tax laws related to Capital Gains Tax (CGT) on the sale of real property were changed at the beginning of 2007.

Main points of old regime (for purchases completed before January 1st 2007):

• - If you hold your property for 5 years you will not be subject to CGT. (It is calculated on a yearly basis, rather than monthly. For example, if you bought your property in May 2004, then the five year period starts from January 2005. No CGT is payable if you sell from January 2010 onwards.)
• - If you sell within 5 years, then you are subject to CGT at 10% of the sales price. However, if within two weeks of selling the property, you declare your intention to reinvest the proceeds in Poland (contacting ministry and tax office), then you are not subject to the tax. The reinvestment must occur within a period of 2 years, otherwise you will have to pay the CGT.

Main points of new regime (for purchases completed after January 1st 2007):

• - Five year rule abolished.
• - Only sellers who have been resident (legally registered) in their own property for at least a year are eligible to sell a property without CGT.
• - Other sellers are liable for CGT at 19% of the profit realized on the sale. The profit is calculated after all fees are taken into account, including notary costs and agency commissions.

Poland is expected to join the Euro currency zone in around 2012, but its entry will be dependent on the economy meeting certain guidelines, including lowering public debt and keeping inflation below target rates.

If you are securing a mortgage in Poland, your bank should offer a bank account as part of the application process. If not, you will need to be present in Poland to open an account, which will require your passport as documentation. Several Polish banks offer their services (such as statements, phone and internet banking) in English.

If you are planning to buy a residential apartment with its own title, it is extremely unlikely that you will have a claim on your property in this manner. In fact, if you buy a property in good faith there is a Polish law protecting you from third party claims. In the case of purchasing an entire building, checks should be done more carefully and a good lawyer employed to check the title thoroughly.