An increasing percentage of wealthy Poles are choosing to buy property abroad. This trend is gaining momentum every year. Why do the rich decide to buy property and flats abroad? Does it make sense and is it possible to profit from it? Which countries are leading in terms of premium real estate purchased by Poles?

Poles are getting rich faster

Statistics show that every year the growth dynamics of the affluent population increases. They include citizens whose gross monthly income exceeds PLN 20,000 for the rich and PLN 50,000 for the very rich. Interestingly, young people are increasingly joining the group of the affluent.

According to the KPMG report for 2018, relating to luxury goods, during the year (between 2017 and 2018) the number of wealthy Poles increased from 23 thousand to 1.3 million!

Where in Poland is the highest percentage of rich people located? On the podium are classified:

Mazovia,
Silesia,
Lower Silesia.

The fourth place is occupied by Małopolska. Why is it that most wealthy people live there? Because these regions are developing most dynamically in comparison with the rest of the country.

What is luxury for the rich?

Wealthy people have a diverse approach to the issue of luxury goods. For some, luxury is the purchase of an expensive and limited edition watch, handbag or jewellery, or a car that is “out of reach” for mere mortals. Real estate is a bigger expense, so until recently it was not as common as buying a modern car or a yacht. However, times are changing, and so are the attitudes of rich people.

More and more often Poles are deciding to buy luxurious properties from the so-called premium class.

So far, the most sought-after properties and flats have been located in Poland, mainly in Warsaw, the capital of Poland, and the capital of Poland:

Warsaw,
Kraków,
Łódź,
Wrocław,
Poznan,
Gdansk.

According to KPMG data, only 2% of Polish citizens own real estate abroad. Where, then, do wealthy Poles decide to buy property abroad and for what purpose?

The most popular foreign premium properties

The reason why wealthy people purchase foreign real estate can really be divided into two variants:

for leisure purposes,
for profit-making purposes.

The first purpose – recreational – is associated with the purchase of a property of the seasonal house type, where the owner of the property rests in the summer or on weekends. In this respect, locations located a few hours by flight from the place of residence are most often chosen. These are destinations close to the equator, warm and attractive in terms of tourism. They can be called an investment for the future – a place of rest for the “old years”.

For this purpose, most affluent Poles choose:

Spain,
Malta,
Cyprus,
Italy,
Portugal,
Greece,
Bulgaria.

When they are not using the property, they rent it out for income purposes, offering accommodation for holidays or holidays, possibly on a long-term basis – this is called house sharing.

Of these, Spain is the leading country. If, on the other hand, someone wants peace and quiet and contact with nature, he or she chooses:

Switzerland,
Austria,
Estonia,
Iceland.

On the other hand, the earning purpose treats the purchase of real estate as an investment. Wealthy Poles are looking for locations in the centres of quite popular European cities such as Paris, Berlin or London. The main purpose of owning premium properties in these locations is to be able to rent them out to people who travel for business purposes, need to move closer to their place of work for a while, and at the same time value comfort and luxury, but do not feel comfortable staying in hotels.

What should I bear in mind before buying property abroad?

Before buying property abroad, check the market of the country in question thoroughly. This way you can estimate whether the planned investment is not overvalued, what condition the real estate market is in – whether housing prices will dive down in the nearest future or the opposite. Verify the procedures and location of the property – where it is located, what is nearby, how the area compares in terms of tourism and recreation.

Buying the property itself is a separate issue. Each country has different procedures for acquiring a property or flat by a foreigner.

For example, in Spain you will need a valid passport or identity card, a Spanish tax identification number NIE, and proof of a Spanish bank account. In Germany, on the other hand, you can purchase property without restrictions as a citizen of a country that has a reciprocal agreement with Germany regarding the purchase of property (applies to EU member states, Switzerland and Turkey).

It is best to entrust the formal and legal issues to an estate agency which will help you complete all the formalities quickly and without any misunderstandings (language barrier). It is also important to consider who will take care of the property in your absence. It is not so much a question of tidying up the place after the tenants have left, but also of looking after the plants or animals, current repairs and maintenance. In this case, it is worth considering hiring a local company which will perform these activities for you and also take care of the proper appearance of the property.

Are you interested in properties at home and abroad – contact premium real estate agency Vilea Property Boutique.

information: www.vilea.pl

contact: biuro@vilea.pl

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