Real Estate / Buying a property in Poland to rent out from the UK [82]

Hi Paul
I’ve been investing in Poland for 6 years. For myself and on behalf of 7 other investors. Together we now have 36 apartments.

Your intention to invest in Poland is wise considering the UK situation. However it could be a great success or a disaster.

You have the right idea by asking around before leaping in.
Firstly, in my view, now is a good time to invest in Poland. The Polish economy is one of the best in Europe but because of the cultural negative mentality property prices are depressed.

The property market is stagnant (sellers are holding out for higher prices and buyers are holding out for lower prices!!) so bargains are out there if you know where to look.

You query the process: The initial buying process is more straightforward than in the UK (you can even get a mortgage based on UK income.) Early in the process you simply need to set up Power of Attorney, obviously with someone you trust but equally importantly with someone you have actual experience in doing what you want. The expression "loose cannon" is very relevant in polish mentality. So an important decision.

Thereafter can come the difficult part.

I assume Gdansk is chosen because your partner has family there.
You say “We will have somebody to manage it for us. This person is the most important to get right. there are many questions to ask this person. If it is family be doubly careful.

The most important aspect to understand is that the people involved in the process (Estate agents, lawyers, builders, letting agents etc) don’t have the same level of competence and standard of ethics you automatically expect in the UK.

I agree with the points Sean makes, particularly regarding lawyers. I now exclude them from the picture completely.

The property mantra is “ location location location”
In your case add Ryanair!! Choose a location you can cheaply visit several times a year.

I go every month and despite constant use of Skype and phone calls to maintain communication there’s nothing better than face to face.

CT

Law / Setting up small business in Poland? [191]

Hi

To set up an Sp.zo.o company should not cost more than 4000PLN.

I had ridiculous quotes (inc £5000 yes pounds from Warsaw firm)

You don't need lawyer, only notary & certified translator.

I've now done it 3 times setting up 3 businesses. Don't let anyone con you into thinking that it's complicated or difficult.

Regards

CT

Law / How do you set up a company in Poland? [46]

Hi Brian

For last 3 years I've been buying property (and selling some) in Poland

If you're serious about it the best thing is to start an Sp.zo.o (the equivalent of a LTD. co. in Poland.) Means you can buy anything without permits.

I think SeanMB was confused into thinking that you wanted to set up an estate agency for which you need a licence, but to sell your own property no licence is needed.

Not sure if you've got very far since your last post (I've only just joined forum) but as you know the market has changed considerably in the last few months.

When I first went to Poland I immediately saw the opportunities, then prices escalated. The next 12 months present a huge buying opportunity. There is a lot of panic selling & hence bargains. My advise is to go for it now & reap the rewards in as little as 3 years.

If you want any advice on starting up let me know. My first company cost 12000PLN to set up (I was quoted £5000 from a company in Warsaw!!) my third company (SP.zo.o.) cost 4000PLN. Shows what some experience can achieve.

Regards
CT