porky pok
16 Feb 2016
Law / Business in Poland and Polish reality, How are you doing in Poland? [82]
Luke,like polishinvestor has said investing in real estate in Poland gets you good returns around 8 to 12% depending upon the property.I have been investing in Poland since 2001 returns are great low taxes(income & real estate).I do only buy commercial real estate as they are hassle free and also I prefer restaurants with liq licenses as if one fails its usually rented again in a month provided you own the equipment.Residentials, I stay away from as they are a hassle in Poland especially if you dont speak the language and returns are not that lucarative.
Also when you sign a lease(umowa) with a commercial tenant i sign 777(tripple net in usa) umowa duly notarised so you just have to get the permission in a week or so to evict the non paying tenant without going through the lengthy court process.Also dont sign a lease longer then 2 years as by polish law one cannot evict a tenant unless he is in default for 2 months then again you have to give him a notice for 1 month,to reduce that time in half you can write him a letter that you took the rent out from his kausia(security) and he has to make up to it in 21 days.
Also be carefull of buying some recently very popular conv-store chain renters as they can get out by giving 2 months notice in first 2 years who usually sign 10 yr leases.
In my opinion if you have the money and want hassle free money is your best way put.Oh I forgot to mention that dont forget you are making 5% minimum invisible money on your property appreciation that in worse case the property prices double in 20 yrs(thats a bonus)
Sorry forgot to add that you dont have to go through the hassle of paying ZUS or company taxes as it can be run individually and paying 8.5%income tax with no deductables thus just an accountant once a year to file your returns and monthly vat what you collect from tenants who also pay media and association fee.And you can also get your 100% VAT back if you are a VAT payer and paid VAT on the property you bought.
Luke,like polishinvestor has said investing in real estate in Poland gets you good returns around 8 to 12% depending upon the property.I have been investing in Poland since 2001 returns are great low taxes(income & real estate).I do only buy commercial real estate as they are hassle free and also I prefer restaurants with liq licenses as if one fails its usually rented again in a month provided you own the equipment.Residentials, I stay away from as they are a hassle in Poland especially if you dont speak the language and returns are not that lucarative.
Also when you sign a lease(umowa) with a commercial tenant i sign 777(tripple net in usa) umowa duly notarised so you just have to get the permission in a week or so to evict the non paying tenant without going through the lengthy court process.Also dont sign a lease longer then 2 years as by polish law one cannot evict a tenant unless he is in default for 2 months then again you have to give him a notice for 1 month,to reduce that time in half you can write him a letter that you took the rent out from his kausia(security) and he has to make up to it in 21 days.
Also be carefull of buying some recently very popular conv-store chain renters as they can get out by giving 2 months notice in first 2 years who usually sign 10 yr leases.
In my opinion if you have the money and want hassle free money is your best way put.Oh I forgot to mention that dont forget you are making 5% minimum invisible money on your property appreciation that in worse case the property prices double in 20 yrs(thats a bonus)
Sorry forgot to add that you dont have to go through the hassle of paying ZUS or company taxes as it can be run individually and paying 8.5%income tax with no deductables thus just an accountant once a year to file your returns and monthly vat what you collect from tenants who also pay media and association fee.And you can also get your 100% VAT back if you are a VAT payer and paid VAT on the property you bought.