18 lipca, 2024

Fixed rate Mortgage – Ranking June 2024

Hi! If you’re looking for the best mortgage, you’ve come to the right place. We have prepared for you the June ranking of the best mortgage offers for 25 years, for the amount of PLN 500,000 with 20% of own contribution. In our list you will find offers with the lowest interest rates, favourable repayment conditions and minimal additional costs.

Why mortgage loan rankings can vary?

Mortgage loan rankings can differ for several key reasons. Each bank offers different terms, promotions, and has an individual approach to customers. Various rankings may take into account different factors such as:

• Insurance costs
• Fees and additional charges
• Repayment flexibility
• Promotions and bonuses for new customers

Our list is based on the assumption of a 25-year mortgage loan for the amount of 500,000 PLN with a 20% down payment. However, every financial situation is unique, and the final offer from the bank may vary depending on individual conditions and needs.

Why you should consult your situation with our experts?

Every financial situation is unique, which is why an individual approach to choosing a mortgage loan is so important. Our assumptions are only a simulation, and your conditions may differ. That’s why we encourage you to contact our experts who will:

• Analyze your individual financial situation
• Find the best loan offers available on the market
• Help negotiate with the bank
• Provide support at every stage of the loan process

By working with us, you can be sure that the selected mortgage loan will be perfectly tailored to your financial situation and future plans.

Contact Us

Consult your situation with our Experts. Take advantage of our knowledge and 16 years of experience to make the best financial decision. Remember, working with us is completely free of charge!

Call us on +48 12 352 12 12 or fill out the contact form on contact page to schedule a free consultation. We are here to help you!

Join our Expats Community

Subscribe my Channels

18 lipca, 2024

Variable rate Mortgages – Ranking June 2024

Hi! If you’re looking for the best mortgage, you’ve come to the right place. I have prepared for you the June ranking of the best mortgage offers for 25 years, for the amount of PLN 500,000 with 20% of own contribution. In the below comparison you will find offers with the lowest interest rates, favourable repayment conditions and minimal additional costs.

Why mortgage loan rankings can vary?

Mortgage loan rankings can differ for several key reasons. Each bank offers different terms, promotions, and has an individual approach to customers. Various rankings may take into account different factors such as:

• Insurance costs
• Fees and additional charges
• Repayment flexibility
• Promotions and bonuses for new customers

The list is based on the assumption of a 25-year mortgage loan for the amount of 500,000 PLN with a 20% down payment. However, every financial situation is unique, and the final offer from the bank may vary depending on individual conditions and needs.

Why you should consult your situation with our experts?

Every financial situation is unique, which is why an individual approach to choosing a mortgage loan is so important. The assumptions are only a simulation, and your conditions may differ. That’s why I encourage you to contact our Expert Team who will:

• Analyze your individual financial situation
• Find the best loan offers available on the market
• Help negotiate with the bank
• Provide support at every stage of the loan process

By working with us, you can be sure that the selected mortgage loan will be perfectly tailored to your financial situation and future plans.

Contact Us

Consult your situation with our Experts. Take advantage of our knowledge and 16 years of experience to make the best financial decision. Remember, working with us is completely free of charge!

Call us on +48 12 352 12 12 or fill out the contact form on contact page to schedule a free consultation. We are here to help you!

Join our Expats Community

Subscribe my Channels

18 lipca, 2024

Credit system in the United States compared to Poland

If you are from the United States and don’t know how credit checking works in Poland, here is a short article on the main differences between the two systems. The process of obtaining a mortgage can be complicated, especially when you move to a new country. Understanding the differences involved will help you to better prepare for obtaining a loan in Poland.

Credit system in the United States

In the US, the process of obtaining a mortgage is mainly based on building and maintaining a good credit history. Here are the essential elements of this process:

Building a credit history

• Credit Cards: Regular and timely repayment of bills helps build a positive credit history.
• Consumer Credit : Taking out and repaying consumer loans also affects your credit history.
• FICO score : The most important indicator is the FICO credit score, which is calculated on the basis of various factors such as timeliness of repayments, length of credit history, debt and new credit.

Creditworthiness assessment

• Income : Banks look at income and stability of employment.

Own contribution

• The minimum own contribution can be as low as 3%, but 20% is often required to avoid mortgage insurance (PMI).

Credit system in Poland

In Poland, the process of obtaining a mortgage differs from that in the US. A key element of the creditworthiness assessment is the applicant’s income. Here are the main aspects:

Creditworthiness assessment

• Income: Banks require proof of income such as employment contracts, bank statements, PITs.
• Stability of Employment: Preference is given to those with permanent employment contracts, however any documented form of employment is also acceptable.
• Other Commitments: The applicant’s other credit commitments are also analysed.

Credit history

• In Poland, credit history (BIK report) is important, but not as crucial as in the USA. Banks check whether the applicant is in arrears with other repayments.

Own contribution

• An equity contribution of 10-20% of the value of the property is usually required.

If you are an Expat from the US, you need to understand the key differences between the lending systems in the US and Poland. In the US, building and maintaining a good credit history plays a key role, while in Poland, demonstrating creditworthiness based on income is most important.

For those planning to buy a property in Poland, it is crucial to have a stable income and to prepare the relevant documents. Both systems have their peculiarities, which are worth understanding before deciding on a mortgage. Understanding these differences will help you better prepare and increase your chances of getting a loan in Poland.

Contact Us

Consult your situation with our Experts. Take advantage of our knowledge and 16 years of experience to make the best financial decision. Remember, working with us is completely free of charge!

Call us on +48 12 352 12 12 or fill out the contact form on contact page to schedule a free consultation. We are here to help you!

Join our Expats Community

Subscribe my Channels

18 lipca, 2024

Starting a business in Poland – a guide for Expats

Poland offers favourable conditions for doing business and it is relatively easy for foreigners to set up a company. Below you will find a detailed guide to the requirements and procedures, costs and fees involved in setting up a company and an overview of the forms of business available in Poland.

What are the requirements and procedures?

Prerequisites:

• EU/EFTA citizens: They can set up a company on the same basis as Polish citizens, without additional permits.
• Non-EU/EFTA nationals: They must have a valid residence permit or visa that allows them to do business in Polan

Procedure for setting up a company:

• Choice of form of business: Determining which legal form of business will be most suitable (sole proprietorship, limited liability company, etc.).
• Registration in CEIDG (Central Register and Information on Business Activity): Applies to sole proprietorships and civil partnerships. Registration is free of charge and can be done online.
• Registration with the KRS (National Court Register): Applies to commercial law companies (e.g. limited liability companies, joint stock companies). Registration requires submission of the relevant documents and fees.
• Obtaining a NIP and REGON number: NIP (Tax Identification Number) and REGON (Statistical Identification Number) are automatically assigned after registration in CEIDG or KRS.
• Registration with ZUS (Social Insurance Institution): Compulsory registration with the Social Security Institution for social and health insurance purposes.

Costs and fees for setting up a company

Sole trader and civil partnership:

• Registration with CEIDG: Free of charge.
• Notary fees: May be required for a civil partnership.
• Costs associated with running the business: Social Security fees (approximately PLN 1,400 per month), accounting costs, office rent, etc.

Ltd. (limited liability company):

• Share capital: the minimum share capital is PLN 5,000.
• Registration with the National Court Register: The registration fee is approximately PLN 600 (PLN 500 court fee and PLN 100 for publication in the Monitor Sądowy i Gospodarczy).
• Notary fees: Fees for the drafting of the deed of incorporation (approximately PLN 1,000 – 2,000).
• Costs related to running the business: Social Security fees, accounting costs, office rental, audits, etc.

Other costs:

• Taxes: Corporate income tax (CIT) is 19%, for small companies the rate is 9%. VAT (23%) may be required depending on the type of business.

Overview of business forms

Sole proprietorship:

• Characteristics: The simplest form of business, suitable for small entrepreneurs.
• Advantages: Low set-up and running costs, simplicity of management.
• Disadvantages: Unlimited property liability for the owner.

Civil partnership:

• Characteristics: A form of cooperation between two or more entrepreneurs engaged in business.
• Advantages: Easy to set up, low cost of registration.
• Disadvantages: Partners are jointly and severally liable with all their assets.

Limited liability company (sp. z o.o.):

• Characteristics: Popular form of business for larger companies, with legal personality.
• Advantages: Limited property liability of partners to the amount of contributions.
• Disadvantages: Higher set-up and running costs, more complicated regulation

Joint stock company (S.A.):

• Characteristics: Business form suitable for large companies and listed companies.
• Advantages: Ability to raise capital by issuing shares, limited liability of shareholders.
• Disadvantages: High set-up costs, complex organisational structure.

Limited partnership:

• Characteristics: Mixed form where at least one partner (general partner) is liable with all his/her assets and the other partner (limited partner) is liable up to the amount of the contribution made.
• Advantages: Flexible liability allocation possible.
• Disadvantages: Complicated legal structure, need to draw up a partnership agreement.

Setting up a business in Poland is a relatively straightforward process, but requires knowledge of local regulations and procedures. Choosing the right form of business depends on a number of factors, such as the type of business, the scale of operations and the level of responsibility you are prepared to take on. Understanding the costs and fees associated with setting up and running a business is key to success in the Polish market.

Contact Us

Consult your situation with our Experts. Take advantage of our knowledge and 16 years of experience to make the best financial decision. Remember, working with us is completely free of charge!

Call us on +48 12 352 12 12 or fill out the contact form on contact page to schedule a free consultation. We are here to help you!

Join our Expats Community

Subscribe my Channels

18 lipca, 2024

Credits and loans for foreigners – a guide for Expats

It may be possible for foreigners to obtain a loan or credit from a Polish bank, but there are some specific requirements and procedures involved. Below you will find a detailed guide to obtaining a loan, terms and conditions, interest rates and a comparison of loan offers.

How to get a loan in a Polish bank?

Required documents:

• Identity document: Passport or identity card (for EU/EFTA citizens).
• Residence permit:
• For non-EU nationals: residence card.
• For citizens of the European Union and citizens of Iceland, Liechtenstein, Norway and Switzerland: certificate of registration of residence of a citizen of the European Union.
• Certificate of employment: Employment contract, income certificate, bank statements.
• Credit history: Credit report from the BIK (Bureau of Credit Information) or other equivalent in the home country.

Steps to obtain a loan:

• Bank selection: Finding a bank that offers loans to foreigners.
• Credit application: Completing and submitting a credit application with the required documents.
• Creditworthiness assessment: The bank assesses creditworthiness based on income, credit history and other factors.
• Credit decision: After a positive creditworthiness assessment, the bank issues a credit decision.
• Contract signing: Signing of the loan agreement and establishment of collateral (e.g. mortgage on the property in the case of a mortgage loan).

Loan terms and interest rates

Types of loans:

• Mortgage loan: A loan for the purchase of a property, secured by a mortgage. The interest rate can be fixed or variable.
• Cash loan: A consumer loan for any purpose, usually for a shorter term than a mortgage.
• Car loan: A loan for the purchase of a car, secured by a vehicle.

Interest rate:

• Fixed interest rate: The interest rate remains constant for the specified term of the loan. This is beneficial in the event of anticipated interest rate rises, as it provides certainty over the loan instalment for that period. At the end of the fixed rate period, the rate may change in accordance with the terms of the loan agreement.
• Variable interest rate: The interest rate may fluctuate depending on interest rates in the market. It can be advantageous during periods of falling interest rates, but carries the risk of rising interest rates.

Credit terms:

• Own contribution: For mortgages, the required own contribution is usually 10-20% of the value of the property.
• Loan term: Mortgages can be granted for up to 30 years, cash loans usually for up to 10 years.
• Collateral: For mortgages, the property is the security for the loan. Cash loans may require additional collateral or guarantors.

Comparison of loan offers

Loan calculators:

• Online: Many banks offer loan calculators on their websites that allow you to estimate your loan instalment based on the loan amount, loan term and interest rate.
• Credit advisers: Using a credit counsellor can help you find the best loan offer and guide you through the application process.

It is possible for foreigners to obtain a loan from a Polish bank, but it requires meeting certain conditions and providing the relevant documents. Credit terms and interest rates may vary depending on the bank, the type of loan and creditworthiness. Comparing the offers of different banks and using a credit adviser can help to find the most advantageous offer

Contact Us

Consult your situation with our Experts. Take advantage of our knowledge and 16 years of experience to make the best financial decision. Remember, working with us is completely free of charge!

Call us on +48 12 352 12 12 or fill out the contact form on contact page to schedule a free consultation. We are here to help you!

Join our Expats Community

Subscribe my Channels

18 lipca, 2024

Poland’s pension system – what should Expats know?

Retirement planning is an important aspect of your financial life, especially if you live abroad. Below you will find detailed information on how the pension system works in Poland, pension saving options for foreigners and a comparison of Polish pension plans with those of other countries.

How does the pension system work in Poland?

ZUS (Social Insurance Institution):

• ZUS manages the public pension system in Poland.
• Pension contributions are mandatory and paid by employers and the self-employed
• The amount of the pension depends on the length of the contribution period and the amount of contributions made.

Third pension pillar:

Currently, the pension system in Poland consists of three pillars:

• Pillar I: Compulsory social insurance administered by the Social Security.
• Pillar II: Open Pension Funds (OFEs) – since 2014 it has been possible to transfer funds from OFEs to ZUS.
• Pillar III: Voluntary saving for retirement (IKE – Individual Pension Accounts, IKZE – Individual Retirement Security Accounts, PPE – Employee Pension Plans).

Minimum retirement age:

• Women: 60 years
• Men: 65 years

Retirement savings options for foreigners

Individual Retirement Accounts (IKE):

• A voluntary account into which funds can be deposited for future retirement.
• Gains from an IKE are exempt from capital gains tax, subject to withdrawal upon reaching retirement age.

Individual Retirement Security Accounts (IKZE):

• Similar to IKE, but with an additional tax advantage – contributions to IKZE can be deducted from the tax base.
• Funds withdrawn upon reaching retirement age are subject to a flat-rate income tax (10%).

Employee Capital Plans (PPK):

• A voluntary scheme for employees, co-financed by the employer and the state.
• The employee, the employer and the state contribute to the employee’s individual pension account.

International pension plans:

• Foreigners can also benefit from international pension plans offered by financial institutions in their home countries.

Comparison of Polish pension plans with other countries

Poland:

• ZUS: Mandatory contributions, low flexibility.
• IKE/IKZE: Voluntary, tax-advantaged individual accounts.
• PPK: Voluntary, co-financed by the employer and the state.

Germany.:

• Deutsche Rentenversicherung: Mandatory pension scheme similar to ZUS.
• Riester-Rente: Voluntary savings with state subsidies, tax-advantaged.
• Rürup-Rente: Alternative plan for the self-employed, also with tax benefits.

UK:

• State Pension: The basic state pension.
• Workplace Pensions: Pension schemes offered by employers, similar to PPKs.
• Personal Pensions: Individual pension plans with favourable tax conditions.

USA:

• Social Security: Mandatory system similar to Social Security.
• 401(k): Employee pension plan with tax benefits, employers often offer subsidies.
• IRA (Individual Retirement Account): Individual retirement account with tax benefits.

The pension system in Poland offers various saving options, both compulsory and voluntary, which may be attractive to foreigners. When comparing Polish pension plans with those of other countries, it is worth noting the favourable tax conditions and the possibility of employer co-financing. Retirement planning is a key financial aspect that needs to be properly understood and tailored to individual needs and capabilities.

Contact Us

Consult your situation with our Experts. Take advantage of our knowledge and 16 years of experience to make the best financial decision. Remember, working with us is completely free of charge!

Call us on +48 12 352 12 12 or fill out the contact form on contact page to schedule a free consultation. We are here to help you!

Join our Expats Community

Subscribe my Channels