Where should I move? Everything you need to know about real estate purchase and legalization in Poland and Lithuania

22/10/2020, 16:07

In August 2020, the demand for buying housing abroad among Belarusians increased.Having analyzed the requests for the period of 10.08.2020–31.08.2020, the REALTING team came to the conclusion that real estate in Poland and Lithuania is currently in the greatest demand.

To facilitate our users’ choice, we have prepared an article that compares them in terms of attractiveness, housing affordability, and so on. We have talked to our Polish and Lithuanian partners who are highly qualified and experienced realtors and lawyers.

Galina Kharlamova, head of the Polish company Swiat Nieruchomosci LLC, told us about the nuances of legalization and the purchase of real estate in Poland.

Dmitry Semionov, chief executive officer of the Lithuanian real estate agency Capital Realty, provided all the necessary information about Lithuania.

For your convenience, all information is presented in a table form.

Poland

Lithuania

Local currency

Polish zloty (10 PLN ≈ 2.28 EUR)

EUR

Can I get a residence permit/permanent residence/citizenship in exchange for buying real estate?

How to get a residence permit?

Pursuing higher education studies and language. courses in Poland
Running your own business.
Marriage to a Polish citizen or permanent resident.
Work visa or a contract.
Polish origin or citizenship of ancestors.
Karta Polaka.

Pursuing higher education studies in Lithuania.
Running your own business.
Marriage to a Lithuanian citizen.
Job in a Lithuanian company.
Investment in the business.
High professional qualification

How long does it take to get a residence permit?

The waiting period for a response about obtaining a residence permit is 5-6 months. Applications for a residence permit in Poland are reviewed only if the applicant has lived in the country for at least 3 months.

The period for obtaining a residence permit depends on the basis on which the documents are submitted. The minimum is 2 weeks (high professional qualification). The maximum is of 4 months.

What are the advantages of a residence permit?

It gives you the right to live, study, and work (in case of a temporary residence permit, you need an additional permit), as well as run business on the territory of the country.
Cross the borders of Member States of Schengen area under a visa-free regime and stay on their territory for up to 3 months.
Receive medical care, purchase/ rent real estate, and movable property.
Apply for citizenship of the Republic of Moldova.
In some cases, a residence permit may be the basis for benefits when obtaining visas to other countries (for example, England and America).

Residence on the territory of Lithuania.
The permit to work and run business in the country.
All social guarantees.
Move around the EU without restrictions.

What are the grounds for obtaining citizenship of the country?

Application addressed to the President or Voivode.
By descent (Karta Polaka).
Marriage to a citizen of the Republic of Poland.

Family reunion.
Naturalization after 10 years of residence in the country.
By descent
Distinguished services.

What are the benefits of obtaining citizenship?

The opportunity to live, study, and work in any EU country, without a time limit.
The right to travel throughout the EU visa-free.
Education in the EU is cheaper for Polish citizens.
The opportunity to purchase land and real estate in the EU.

Opportunity to live in Lithuania.
The permit to work and run business in the country.
All social guarantees.
The right to move around the EU without restrictions.
The right to reside in other countries that are part of the European Union.
Vote in elections.

Does a foreign citizen have the right to purchase real estate in the country? Are there any restrictions?

A foreign citizen has the right to purchase almost any real estate on the territory of Poland.

To purchase a house or a land plot, you will need a special permit issued by the Ministry of Foreign Affairs. The purchase of an apartment or a parking space is allowed without special restrictions.

A foreign citizen has the right to purchase real estate in Lithuania.

There are some restrictions only in the case of purchasing agricultural objects.

What is the average cost of real estate in the major cities of the country?

Prices as of June 2020 (according to the agency Shoppingpl.com):

Warsaw – 2.5 thousand euros/sq.m.
Gdansk – 2.3 thousand euros/sq.m.
Krakow – 2.1 thousand euros/sq.m.
Wroclaw – 8.5 thousand euros/sq.m.
Poznan – 1.8 thousand euros/sq.m.
Katowice – 1.5 thousand euros/sq.m.
Lublin – 1.4 thousand euros/sq.m.
Szczecin – 1.4 thousand euros/sq.m.
Bydgoszcz – 1.4 thousand euros/sq.m.
Rzeszow – 1.3 thousand euros/sq.m.
Bialystok – 1.3 thousand euros/sq.m.
Lodz – 1.3 thousand euros/sq.m.
Olsztyn – 1.3 thousand euros/sq.m.

Vilnius:
- new buildings in the center – 1.8-4.3 thousand euros/sq. m.
- secondary housing in the center – 1.2-2.5 thousand euros/sq. m.
- new buildings in residential areas – 1.15-1.83 thousand euros/sq. m.
- secondary housing in residential areas – 0.99-1.6 thousand euros/sq. m.
Kaunas:
- new buildings in the center – 1.38-2.1 thousand euros/sq. m.
- secondary housing in the center – 0.87-1.9 thousand euros/sq. m.
- new buildings in residential areas – 1.05-1.52 thousand euros/sq. m.
- secondary housing in residential areas – 0.68-1.3 thousand euros/sq. m.
Klaipeda:
- new buildings in prestigious areas – 1.450-2.0 thousand euros/sq. m, "secondary" in prestigious areas – from 0.87-1.99 thousand euros/sq. m.
- new buildings in other areas – 1.09-1.55 thousand euros/sq. m. "secondary" in other areas – 0.66-1.3 thousand euros/sq. m.

What documents are necessary for buying real estate?

International passport.
Personal or documented consent of the spouse (notarized power of attorney or marriage contract).

Passport and/or notarized copy of the passport.
Notarized power of attorney confirming financial independence.
Consent of the spouse (if necessary).

How does the property purchase process work? What stages does it include?

Drawing up a reservation agreement.
Signing a preliminary contract with the developer (Umowa Deweloperska).
Making a payment (possible in the form of several payments according to the schedule approved by the developer).
The signing of a notarized deed of purchase and sale of real estate (after construction).
Registration of an apartment in your name.

Conclusion of a preliminary contract.
Agreement on the terms of the contract with a notary.
Conclusion of a purchase and sale agreement.
Real estate registration in the registration center.

What additional expenses can be faced by a buyer in the process of purchasing real estate?

You must pay:

Realtor services.
Legal services.
Interpreter services.
Taxes and duties.

You must pay:

Interpreter services.
Legal support.
Notary and registration center services.
Mortgage (if necessary).
Real estate verification and evaluation services.

There are no taxes on the purchase of real estate in Lithuania.

What's the average cost of utilities?

The average cost of utilities in Poland is starting from 1.5 to 2.5 euros per sq. m. (in new buildings).

Electricity is paid additionally.

The average electricity price in Lithuania reaches 13.7 cents/kWh including VAT.

Drinking water and wastewater treatment cost an average of 1.36 euros/cubic meter. In September 2020, the price for central heating is 3.00 cents/kWh.

What should a foreigner pay attention to when purchasing housing for investment purposes?

Location of the property (preferably within walking distance to the metro station).
Price rise over the years.
The ability to quickly exit the investment.
The price of the object.

Registration papers.
Purpose of real estate (no restrictions on the purchase of this type of real estate).
Compliance with the proposed price and the actual value of the property.
Contract and payment terms.
The legal status of the contract.
No court cases or arrests connected with the purchased property.