Approximate costs of the acquisition of an apartment valued at 100.000 € :

* Price includes VAT ( 2% stamp duty on second-hand properties )

Approximate costs of the finishing work of a brand-new apartment:

After a new Polish development is handed over by the developer, the new owners - are usually responsible for all finishing work. We have specialized teams who take care of all this from beginning to end.
The final cost of the finishing work depends on the size of the given property. In most cases our clients purchase 50-70 Sq. m. apartments and then the average final cost of the finishing work and the interior design amounts to around 400 € per m2 which usually includes: fees of sub-contractors, labour costs, décor, home appliances, furniture and all remaining elements necessary for the successful and long-term renting of the new property.
The salary of Warsaw Properties for the organization and direct supervision over the finishing work amounts to 10% of the finishing work budget.

Tax on rental incomes:

On November the 13th 1995 governments of both The Republic of Poland and Ireland signed in Madrid, the Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. According to article 6 of the given Agreement, the income derived by a resident of a Contracting State (an Irish citizen) from immovable property (including income from agriculture or forestry) situated in the other Contracting State (Poland) may be taxed in that other State (Poland).
As a result of this regulation ? and also in connection with article 3.2a of the Polish Personal Income Tax (PIT) - a citizen of Ireland being an owner of a real estate located in Poland is subject to tax liability under the Polish tax law which does include the tax on rental incomes.
The rate of the income tax amounts to 8,5% of the rental incomes and is paid monthly. If the given income exceeds in the calendar year the value of 4000 Ř then the tax rate on the surplus over 4000 € is 20%.
The Irish investor has to register for the tax purposes at the appropriate polish Tax Office and get the Polish Tax Identification Number (NIP).
Polish tax payable by an Irish citizen under the laws of Poland and in accordance with the Agreement for the avoidance of double taxation, whether directly or by deduction, on profits, income or gains from sources within Poland shall be allowed as a credit against any Irish tax computed by reference to the same profits, income or gains by reference to which Polish tax is computed (article 24 of the Agreement).
Warsaw Properties co-operates with the registered accountants and tax advisers who are open to advise the Irish clients on the tax issues and offer their assistance while dealing with the Polish public authorities.

Other related Taxes & fees:

All real estate located in Poland is subject to real estate tax within the limits defined in the Local Taxes Act published every year. As specified, annual tax rates are determined by resolutions of the local self-government council and may be different in each administrative area. The 2005 maximum real estate tax rates for selected types of real property are set out in the following table:
Type of Real Estate Annual Tax Rate per Square Meter

An owner of a dwelling which is located in a building situated within a plot of land used under perpetual usufruct is obliged to pay fees arising out of the said perpetual usufruct. The perpetual usufruct is given for 99 years and after this term it is extended for another 99 years. The majority of sites in Warsaw have the status of perpetual usufruct. The amount of the above-mentioned fee is calculated in accordance with the provision of the Real Estate Management Act (e.g. for an apartment of 50-70 Sq. m. with one garage space the total fee would be around 80 € per annum).

Capital Gains Tax:

If an Irish investor makes a decision to sell real estate located in Poland within 5 years from the end of the calendar year of its acquisition, then such a transaction is subject to Capital Gains Tax (CGT). The rate of CGT amounts to 10% of the value of the selling price which can be verified by the Polish Tax Office.

Approximate return on the investment:

The rental return from the investment can be calculated at a rate of 5% - 8% per annum. In terms of capital appreciation, an increase of about 12.5% per annum can be expected from a real estate investment in Warsaw.

Other possible related costs:

One can expect to pay on average 1 months rent as a fee to letting agencies. The average time from the property going on the market to a tenant actually moving in is about 1 month at the upper end of the market.
All buildings have a management company or residents association which administers and controls the servicing of the property. The cost of this can be calculated at about 2 euro per m2 per month..
Generally included in the management fee:

• Hot & Cold water
• Heating
• Refuse collection
• Security
• Lifts
• Renovation fund
• Garage / Parking
• Cleaning
• Insurance