I know countless questions get asked regarding land on this site, but I would appreciate any help regarding the following.
Upon recent visit I have been offered a parcel of building land close to where my relatives just outside Krakow. They seem to think it would be a straight forward purchase from their friend and again straight forward with the build process.
I was hoping if anyone could give me any helpful advice on:
1) what to look in to before commiting
2) if any red tape may prevent or hold up the purchase.
3) I am aware I will need a english speaking solicitor, anything else
4) are there any tax implications too.
5) could any finance be raised via a Polish bank for the build.
Thanks for any advice/help given.
I'm assuming that you've done this kind of thing before so have a good grip of the building and construction management process, so my advice based on my experience doing similar things so far (on a small scale):
1) Check whether the land is designated as a building plot (budowlana) or agricultural (rolna). Depending on which it is will considerably alter the value and the time your project is going to take. If it's a rolna plot then talk to the local authority about the chances of getting it redesignated. Also check if there are services (water + sewerage, gas, elec) to the plot and if not, how many other people's plots it's going to have to go through, who the owners of these plots are and whether they have registered addresses. They don't have to agree to allow you to cross their land and I know of a number of projects that are held up for years because an owner/co-owner can't be found to give consent.
2) There's a restriction on how much land/area a foreigner can buy. If you go over the limit, you will need permission from the ministry of the interior and you should allow at least 3 months for this. You can make this a condition of the pre-agreement.
3) There are quite a few English-speaking solicitors in Krakow so you won't have a problem finding one but strictly speaking you don't need one - it's the notary who does the deal. If you don't speak Polish the notary will need to have a court-registered translator present at the transaction.
4) You don't say if you are UK resident but if you are, you'll have CGT to worry about.
5) Getting finance is long and life sapping process. It took our company over 3 months, there was only 1 game in town, they were completely risk averse and they wanted to know the most ridiculous amount of detail. They'll want to see that your business plan can absorb at least a 30% increase in building costs.