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Are you from Ukraine, Russia or any other non-EU country? After reading this article you will know how to get mortgage loan in Poland and what are the main documents and formalities.
Mortgages for foreigners in Poland are very popular in recent years. It derives from increased inflow for profit of people from abroad to Poland. In this article we will focus on foreigners outside of European Union that live and work in Poland as residents. To gain right to stay for more than 3 moths (in regards to residence permit for a fixed period) you have to be employed in a Polish company or register your business in Poland. Your right to stay will be valid as long as your work connection to Poland. If you will sustain your employment or business for 5 years you will gain permanent residence right for 10 more years. Procedures regarding residence permit or residence card can be carried out in Voivodeship Office (Urząd Wojewódzki). If you are foreigner that lives in Poland you can register your stay. You will automatically gain PESEL number which is personal identity number. If you’re not able to register, you can apply for PESEL in municipal office (Urząd Gminy) but you will need to provide your passport, ID and tenancy contract. PESEL will be very helpful in many administrative procedures. It will also give you ability to apply for a cash loan or mortgage in a larger number of banks. Most often required documents you need to have as a foreigner regarding cash loans/mortgage procedures are:
- Passport
- Residence card with PESEL
Banks like ING Bank Śląski, Millennium Bank or Santander Bank don’t require to have PESEL number but it is good to get it in connection with many official procedures. Residence card has to be valid for at least 12 month ahead (only mBank allows applying with residence card with 6 months validity).
Basis criteria when it comes to applying for mortgage is your income. We describes types of income in the other article about UE citizens. Although there are few differences about certain documents proving your legal status your situation (when it comes to income ) is the same as every other person that applies for a banking product. Your income needs to be stable and verifiable to banks.
Best accepted by banks type of income is contract of employment. Contract can be established for fixed-term or indefinite time (permanent contract).
Contract for indefinite period (permanent contract):
This is the most respected type of income.
It will be accepted in several banks after 3 months from the beginning of employment. To have access to majority of the banks contract should be longer than 6 months. It is best if contract is with the same employer.
Fixed-term contract:
Fixed-term contract just like permanent is acceptable after 3 month from the start date (6 month if you want to consider more banks) but it is also required to have duration of at least 6 months ahead (it is better to have contract for next 12 months).
Self-employment:
According to Polish regulations your residence card should indicate legal basis for your stay. If it’s art. 144, art. 159 par. 1 or art. 186 par. 1 p. 3 i 4 legal act from 12th December 2013 r. regarding foreigners (Dz. U. z 2017 r. p. 2206 i 2282 or from 2018 r. p. 107 i 138) you can register a company in Poland. At the beginning you have to choose optimal type of taxation. Best respected by banks and acceptable type is Revenue and Expense Ledger. That gives you opportunity to balance your revenue with costs to lower your taxes. It is also proper way to show your income for the bank. First procedure you need to do is to register the company in the Central Register and Information on Economic Activity CEIDG.
For banking procedures minimum period of operations is 12 months from the registration of the company. After that period more than half of polish banks will accept your income as a basis to evaluate your creditworthiness. It’s required to show stable cashflows and positive net income in upward trend.
The fastest way to calculate your net income for the purpose of mortgage application is to reduce your gross income by costs, social insurance fees and tax. If your company possess assets you can increase your net income by adding depreciation of those assets.
Civil-law contract:
Sometimes smaller companies hire employees with civil-law contact for the probation period. Two main types of those contracts are: specific-task contract (or contract of specific work called “umowa o dzieło”) or contract of mandate – called “umowa zlecenie”. Unfortunately those contracts are less attractive for banks considering mortgage application but you still have chances to get positive credit decision. It is better to show ongoing contract (or series of subsequent contracts) with the same employer. Contract should be longer than 6 months (3 banks accept that period) or 12 months if you want to consider larger number of banks. There are also different requirements regarding the documentation that you have to collect. You should preserve all of your contract (originals) and bills. It is best to established with an employer to transfer salary directly to a bank account.
At POLASSETS, we will help you to establish your chances for mortgage and creditworthiness, prepare scheme of procedures and help you to prepare needed documentation for your loan application.
