Why do people invest with us in Poland?
Many people choose to invest in real estate because it can help them build wealth over time and provide a steady source of passive income. Poland is becoming a popular place for real estate investors because it has a growing economy, good tax policies, and a safe government.
Strong growth in the economy
In the past few years, Poland’s economy has grown quickly. According to the World Bank, Poland’s gross domestic product (GDP) grew by 4.5% in 2019. This was the biggest growth rate in the European Union. The country also did well during the COVID-19 pandemic. In 2020, the economy shrank by only 2.7%, which was one of the smallest drops in the EU.
This rise in the economy has made more people want to buy homes, especially in big cities like Warsaw, Krakow, and Gdansk. Foreign interest in real estate has also gone up because the economy is getting better.
Favorable Tax Policies
Poland’s tax system is good for people who want to invest in real estate. Investors can get tax breaks if they buy certain kinds of real estate, like residential or business properties.
For example, owners who buy homes and keep them for at least 5 years without selling them do not have to pay capital gains tax. Also, investors who buy and rent out business buildings can deduct some costs from their taxable income, such as property taxes and maintenance costs.
Also, Poland has a flat tax rate of 19% on both personal income and business gains, which is lower than the tax rates in many other European countries.
It gets even more interesting if you plan to establish an sp. Zoo., which is the Polish version of a ‘Lilmited Liability’ company (B.V. in Belgium). When your revenues do not exceed 2 million euros, you only pay 9% CIT (Corporate Income Tax) on your profit.
Political climate that is stable
Poland has a stable government system, which makes it appealing to investors who want to put their money somewhere safe and stable. The country is a part of both the European Union and NATO, which helps keep the economy and government stable.
The Polish government has also put in place measures to encourage foreign investment in real estate. For example, the government has made it easier to get building permits and has given tax breaks to people who invest in real estate.
Getting more tourists
Poland’s tourism business is growing, which has led to a rise in the number of short-term rentals. Krakow, Warsaw, and Gdansk are all important tourist spots in the country. Each year, millions of people visit Krakow, Warsaw, and Gdansk.
Because of this rising need for short-term rentals, rental yields for real estate investors have gone up. Also, investors can take advantage of the growing tourist industry by buying properties in prime locations and renting them out on short-term rental sites like Airbnb.
Low Real Estate Prices
When compared to other European countries, real estate prices in Poland are relatively cheap. This gives investors a chance to buy properties at a lower price and a higher potential return on their investment.
Also, there are a lot of properties for sale in Poland, which gives buyers a lot of options for investments. Investors can choose from residential, business, and industrial properties.
Good rental income
The rental market in Poland is strong, especially in big towns like Warsaw, Krakow, and Gdansk but also in other regions throughout the country, rental prices are increasing.
This strong rental market has made it possible for real estate investors to get good rental returns. On average, you can expect to see rental returns between 5 – 8% per year depending on location, type of real estate and of course… your initial investment.