Should Foreigners Take a Mortgage in Warsaw in 2025 and How to Do It?

Poland’s capital, Warsaw, has become one of Central Europe’s most attractive destinations for property investment. With its growing economy, strong rental market, and strategic location within the EU, the city has seen a rising number of foreign buyers—both investors and expats—interested in buying apartments, houses, and commercial properties.

But is it worth it to take out a mortgage in Warsaw as a foreigner in 2025? And more importantly, how can you do it legally and efficiently? This guide walks you through the benefits, risks, requirements, and practical steps to securing a mortgage in Poland’s capital city.

1. Overview of the Warsaw Real Estate Market in 2025

Strong Demand and Rising Prices

As of 2025, real estate prices in Warsaw continue to rise steadily, particularly in high-demand districts such as Śródmieście, Mokotów, and Wilanów. According to data from Poland’s Central Statistical Office (GUS), the average price per square meter in Warsaw is around 15,000–18,000 PLN (~$3,800–$4,500 USD) depending on location and property condition.

High ROI and Rental Yields

Rental demand is especially strong in areas near business districts and universities. Monthly rental returns range between 4%–6%, with premium properties yielding even more, especially for short-term rentals.

Top Neighborhoods for Investment

• Mokotów – Close to office parks and embassies, great for expats

• Wola – Rapidly transforming with new developments and office spaces

• Praga Północ – Up-and-coming with lower prices and strong growth potential

• Śródmieście – Central, historical, and always in demand

2. Can Foreigners Legally Buy Property in Poland?

EU vs Non-EU Citizens

• EU/EEA citizens can freely purchase most types of real estate in Poland, including apartments, without additional permits.

• Non-EU citizens (e.g., from the UK, USA, Canada, Australia) can buy apartments without land. However, buying land (e.g., for a house) or certain commercial properties may require a permit from the Polish Ministry of Interior and Administration.

What You Can Buy Without a Permit:

• Apartments in buildings without land ownership

• Garage units or storage spaces

• Commercial units in some cases (check zoning laws)

Legal Process

• A notary public (notariusz) must draft and verify the sale agreement

• You’ll need a PESEL number (Polish ID number) and potentially a tax identification number (NIP)

• Property rights must be registered with the Land and Mortgage Register (KW)

Legal Risks to Watch For

• Buying property with unresolved ownership issues

• Misrepresentations by sellers or developers

• Zoning and land-use restrictions for investment properties

3. Should You Get a Mortgage as a Foreigner in Warsaw?

Benefits

• Leverage: Allows you to invest more while maintaining liquidity

• Asset growth: Real estate appreciation in Warsaw has been consistent

• Tax efficiency: In some countries, mortgage interest on foreign property can be deducted

Risks

• Interest rate fluctuation: Most Polish mortgages are variable or semi-fixed

• Exchange rate risk: Especially if your income is not in PLN

• Approval challenges: Foreigners face stricter documentation and higher down payment requirements

• Residency risk: Non-residents may be subject to stricter lending terms

Mortgage vs Cash Purchase

If you plan to hold the property long-term or generate rental income, a mortgage can be a smart financial tool. However, if you’re purchasing for personal use or expect to sell quickly, a cash purchase may be more flexible and faster.

4. How to Get a Mortgage in Poland as a Foreigner in 2025

Required Documents

• Valid passport or EU ID

• Residence permit (temporary or permanent) or proof of long-term stay

• Employment contract or business registration (Polish or foreign income accepted by some banks)

• Credit history report (e.g., Equifax or Experian)

• Polish bank account

• Property valuation report from an authorized appraiser

Down Payment

• Typically 20%–30% for foreigners

• Some banks require higher down payments for non-EU buyers or those with foreign income

Top Banks Offering Mortgages to Foreigners

• PKO Bank Polski

• Santander Bank Polska

• ING Bank Śląski

• Alior Bank

• mBank – Known for online processes and English-speaking support

Mortgage Duration & Interest Rates

• Loan terms: 5–35 years

• Interest rates in 2025: Between 6.5%–8% APR, depending on applicant profile and loan currency

• Most mortgages are variable-rate, though fixed-rate options (up to 10 years) are becoming more popular

Using a Mortgage Broker

Hiring a bilingual mortgage broker can speed up the process, improve approval chances, and help you compare offers. Reputable firms include:

• Expander Advisors

• Open Finance

• Notus Finanse

5. Tips for Buying Property in Warsaw as a Foreigner

• Hire a local lawyer experienced in real estate law and foreign transactions

• Use bilingual real estate agents who understand the expat market

• Choose neighborhoods with good rental potential (close to public transport, universities, and business centers)

• Understand costs: Expect to pay 2% notary fee, 2%–3% agent commission, and 2%–4% in taxes

• Check building condition if buying older properties — some pre-war buildings need costly renovations

• Inspect ownership title and land register before signing anything

6. Alternatives to Mortgages for Foreign Buyers

Developer Financing

Some property developers offer installment-based payment plans over 1–2 years, especially in new build projects. No interest but stricter timelines.

Buying with a Polish Spouse or Business

You can co-own property through:

• A Polish spouse or partner

• A limited liability company (Sp. z o.o.) registered in Poland — commonly used by investors

Private or Cross-Border Loans

Some international banks in your home country may offer loans for purchasing Polish property, but this typically requires higher collateral.

Crowdfunding & Real Estate Platforms

Options like EstateGuru or CrowdEstate let you invest in Polish real estate with small amounts, though you won’t own the property directly.

Rent-to-Own Models

Occasionally available in Warsaw’s suburban developments, allowing tenants to buy the property after a few years of leasing.

❓ FAQs: Foreigners and Mortgages in Warsaw

1. Can foreigners get a mortgage in Poland in 2025?

Yes, both EU and non-EU foreigners can apply, though requirements are stricter for non-residents and non-EU citizens.

2. How much down payment is needed?

Typically 20%–30% for foreign buyers, depending on residency status and income source.

3. Which banks in Poland offer mortgages to foreigners?

PKO BP, Santander, ING, mBank, and Alior Bank are among the most foreigner-friendly lenders.

4. Can I buy a property in Warsaw without living in Poland?

Yes, but non-residents may face stricter mortgage terms and will need a local legal representative.

5. Do I need a Polish bank account to get a mortgage?

Yes, you’ll need one to receive the loan and manage payments.

6. Are there tax advantages to having a mortgage in Poland?

Possibly, depending on your home country’s tax laws. Consult with an international tax advisor.

7. Is it better to buy with cash?

It depends. Cash offers can speed up transactions and eliminate financing fees, but mortgages offer leverage and tax benefits.