Start a Real Estate Business in Poland: Requirements & Benefits

Poland, with its booming real estate market and robust economy, offers a golden opportunity for entrepreneurs and investors looking to establish a real estate business. Whether you’re an experienced real estate professional or a newcomer to the industry, the Polish market is ripe for exploration. In this comprehensive guide, we’ll walk you through the steps to start a real estate business in Poland, highlighting the benefits, requirements, and key considerations that will set you on the path to success.

Benefits of Investing in Poland’s Real Estate Market

Poland’s real estate sector has been experiencing substantial expansion in recent times, rendering it a desirable location for prospective entrepreneurs. 

Here are some key benefits of starting a real estate business in Poland:

Steady Economic Growth 

Poland boasts a strong and stable economy, making it a safe bet for long-term investments. The country’s consistent economic growth provides a favorable environment for real estate development.

Growing Demand

The demand for real estate in Poland is on the rise, driven by urbanization and an expanding middle class. Because of the strong demand, there are several opportunities for real estate entrepreneurs to explore.

Favorable Investment Climate 

Poland’s government has implemented several pro-business policies, making it easier for foreign investors to enter the market. This includes tax incentives and a streamlined registration process.

Affordable Real Estate 

In comparison to Western European countries, real estate prices in Poland are still relatively affordable. This provides an advantage for investors who want to increase their investment returns.

How to Start a Real Estate Business in Poland?

1. Research and Business Plan

• Market Research: Understand the Polish real estate market, including the demand in various regions, property prices, customer profiles, and the competitive landscape.
• Business Plan: Create a detailed business plan outlining your business model, target market, marketing strategy, funding requirements, financial projections, and growth strategy.

2. Choose Your Business Structure

The second step to starting a real estate business involves selecting the type of company in Poland. You can set up a sole proprietorship, partnership, or limited liability company. An LLC is the most common for small and medium-sized enterprises.

3. Registration

• Company Name: Ensure that your business name is unique.
• Company Registration: Register the business with the National Court Register (Krajowy Rejestr Sądowy – KRS).
• Tax Registration: Apply for a VAT number, and a tax identity number (NIP)  if appropriate.
• Social Security: Register with the Social Insurance Institution (Zakład Ubezpieczeń Społecznych – ZUS).

4. Real Estate License

Depending on the services you intend to offer, you might need a real estate license. 

5. Location and Office Setup

Find a suitable location for your office if you need a physical presence in Poland.

6. Bank Account

Open a corporate bank account to manage your business finances.

Documents Needed to Start a Real Estate Business in Poland

1. Legal Structure Registration Documents:

Depending on the chosen legal structure for your real estate business (e.g., limited liability company, joint-stock company, partnership), you’ll need the relevant registration documents. For a limited liability company, these documents include the articles of association and the memorandum of association.

2. Registration Application:

A formal application to register your real estate business with the National Court Register (KRS). This application will include information about your business’s legal structure, registered office, and initial shareholders or partners.

3. Share Capital Confirmation:

Proof of deposit of the required share capital in a dedicated bank account.

4. Tax Identification Number (NIP):

You must submit an application for acquiring a Tax Identification Number (NIP) for your real estate business. This number is crucial for tax reporting and identification reasons.

5. Registered Office Confirmation:

Documents confirming the location of your registered office in Poland. If you use a registered office service, you’ll need to provide documentation from the service provider.

6. Permits and Licenses:

You could require licenses and permits for the particular real estate activity you intend to do. The documentation required for these approvals can vary, but you should expect to provide information on your business activities and qualifications.

7. Notarial Deeds:

Certain actions, such as transferring real estate property or changing the company’s capital, may require notarial deeds. These documents are prepared and certified by a notary.

8. Shareholder Agreements:

If you have multiple shareholders or partners, a shareholder or partnership agreement detailing the rights, responsibilities, and shareholdings of each party is essential. This document helps ensure a clear understanding of the business’s governance and decision-making process.

Requirements for Starting a Real Estate Business in Poland

Starting a real estate business in Poland involves several requirements and steps to ensure legal compliance and operational success.

The following are the main prerequisites to take into account:

Legal Structure

Select an appropriate legal structure for your real estate business. The most common options include a limited liability company (Sp. z o.o.), a joint-stock company (S.A.), or a partnership. The choice of structure will impact factors such as liability, share capital, and governance.

Registered Office

Your real estate business must have a registered office in Poland. Notifications and legal communications should be sent to this registered office officially. You can choose to have your own physical office or use registered office services provided by specialized companies.

Share Capital

Depending on the legal structure you choose, you will need to provide a minimum share capital. A limited liability company (Sp. z o.o.) requires a minimum of 5,000 PLN in share capital. This capital must be deposited in a bank account dedicated to your business.

Permits and Licenses

Permits and licenses may be necessary for the particular real estate activity you intend to do. Finding the required approvals and researching local legislation is essential. Different licenses may be needed for various real estate-related businesses, including property development, real estate brokerage, and property management.

How OnDemand International Can Help?

Starting a real estate business in Poland can be a rewarding endeavor, but it’s not without its challenges. To simplify the process and ensure a smooth entry into the market, you can turn to experts like OnDemand International. We specialize in assisting foreign entrepreneurs and investors in establishing businesses in Poland.

OnDemand International offers a range of services, including:

• Legal entity setup and registration.
• Obtaining necessary permits and licenses.
• Accounting and taxation support.

With OnDemand International by your side, you can navigate the complexities of establishing a real estate business in Poland with confidence.

Conclusion

Starting a real estate business in Poland is for business owners and financiers aiming for a thriving market with abundant opportunities. With steady economic growth, a growing demand for real estate, and a favorable investment climate, Poland offers a promising environment for your real estate endeavors.