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Holiday Home Insurance Poland

Polish Holiday Home Insurance

Poland is one the earliest and fastest growing members of the EU.  The Polish government has concentrated in embracing EU laws and economic incentives to trade goods and labour cross border. By ensuring it meets it’s commitment to future single currency integration it has attracted foreign investors seeking early market entry and skilled low cost labour.   it’s citizens are becoming richer as GDP rises, unemployment falls and wages rise from workers coming to the UK or running new businesses.  Between 2004 and 2006 disposable income rose by 29%, driven partly by skilled workers working abroad in places like the UK.    This has resulted in a rise in home ownership which was 48% in 1998 and rose to over 60% in 2006.  These wealthier citizens are demanding higher specification urban apartments.  In addition demand for rental property is being driven by foreign investment in Poland…   Large multinationals are beginning to set up offices in Poland in cities like Warsaw where highly educated and skilled low cost labour pools exist.  In particular, the backlash against Asian based call centres due to language and cultural confusions, has promoted calls by some companies to base themselves in Poland.  This influx of foreign investment and workers has stimulated demand for polish rental property.

The Polish Holiday Home Market – the polish buy to let market one of the most popular holiday hot-spots for UK and other EU investors.  This demand is reflected in the total value of property transactions which rose by an amazing 51% between 2004 and 2005.   At the same time property prices are rising by around 10 per year while only 20% of property is mortgaged (indicating a lower potential risk of price crash due to mortgage interest rate rises).  The main types of holiday homes purchased by foreign buy to let investors tend to be urban based, renovated, city centre apartments in areas like Krakow, Poznan and Warsaw.  The traditional picturesque rural towns of Silesia are also becoming more popular with land space in abundance and lovely log cabin and older farmhouse properties available. There are plenty of brand new property developments for holiday investors to choose their second holiday home.   The low cost European carries and three hour flight time makes it simple for holiday home owners to visit their holiday home to check up on any tenants or undertake maintenance and repairs.

Holiday Home Insurance for Polish Property – whether you plan to leave the property unoccupied or use if a long term holiday let, you will need to protect you investment with adequate buildings and contents insurance. Assetsure are able to offer second home and holiday home insurance for your Polish holiday home.   We can provide cover for property let part of the time.. perhaps you are only visiting the property a few times a year as a holiday home and other times during the year it is let out to cover the costs of the mortgage.

How to Buy a Holiday Home in Poland – if you do not live in Poland and are looking to buy a holiday home in Poland whether it for holiday letting or simply to act as a second home you will have to familiarise yourself with the legal property purchase laws and procedures.    The Polish Civil Code sets out the rules you must follow.  All Citizens of the European Union can buy and sell holiday home property but not land officially classed as agricultural land. Before you begin making offers you will need written permission from the Polish Home Office. The alternative is to set up a Polish based company which makes the purchase but the company is controlled by you.  You must ensure the land as well as the property are properly identified as Polish law separates the two and allocates rights to each area.  You will need to employ a Polish solicitor who will be responsible for the legal paperwork and who must also use a translator to ensure any documents are properly translated. These will include the initial contract which highlights the offer, acceptance and buyers and sellers details. The notary will draft and oversee two purchase contracts; the first is the ‘Preliminary Contract’ and the second is the ‘Final Contract’.   You must also employ an independent notary to ensure the buyer and seller sign the final contract on a pre-agreed date and that title of ownership has legally been transferred and a not placed in the local land registry. Once the final contact has been signed the final monies can be exchanged. The cost of purchasing your second home or holiday home is likely to be 8%; this is made up of VAT on new flats under 5 years old (although an anticipated 22% charge is expected by January of 2008).  Other purchasing costs include 2% stamp duty, 1.5% property tax (based on market value), notary fees of 3%.  Upon the sale of the investment property a 19% capital gains tax is also levied and during the life of any holiday letting another flat rate of 19% is also during on rental income.  Other minor costs to consider will be court registration, land registry, surveyors fees (if old property) and any estate agent commission. The main holiday home areas are: Cuiavian-Pomeranian, Dolnoslaskie, Greater Poland, Kujawsko Pomorskie, Lesser Poland, Łódź, Lodzkie, Lower Silesian, Lubelskie, Lublin, Lubuskie, Lubusz, Malopolskie, Masovian, Mazowieckie, Opole, Opolskie, Podkarpackie, Podlasie, Podlaskie, Pomeranian, Pomorskie, Silesian, Slaskie, Subcarpathian, Swietokrzyskie, Swietokrzyskie, Warmian-Masurian, Warminsko Mazurskie, West Pomeranian, Wielkopolskie and Zachodniopomorskie.