Flat purchase costs - the full list of expenses
This article is for informational purposes only and does not constitute legal, tax or financial advice within the meaning of applicable law. Consult a licensed advisor before making any decision.
When buying a flat, on top of the price you will pay additional costs that can, as a rough guide, reach several percent of the property's value. The most important of these are the notarial fee, the tax on civil-law transactions or VAT, court fees for entry into the land and mortgage register, the agent's commission, and mortgage costs if you finance the purchase with a loan.
In this article we set out the full list of expenses, split them into mandatory and optional, and show how costs differ between the primary and secondary markets. This will help you plan your budget without unpleasant surprises at the notary's office.
- You need to add transaction costs to the flat's price, which as a rough guide can amount to several percent of the property's value.
- The main items are the notarial fee, PCC or VAT tax, court fees for entry into the land and mortgage register, and any agent's commission.
- Buying with a mortgage generates additional costs: the bank's commission, the property valuation and insurance.
- The primary and secondary markets differ in taxation - VAT is usually included in the developer's price, while the buyer pays PCC on the secondary market.
- It pays to plan a financial reserve for renovation, furnishing and the first running costs.
Which costs beyond the price must you add?
The price shown in the listing is a starting point, not the total cost of the purchase. Added to it is a group of transaction expenses whose size depends on the property's value, the type of market and the method of financing. Together they can raise the total cost by roughly several percent.
We divide the costs into three groups: fees tied to the transaction itself (notary, taxes, court), mortgage costs, and expenses after the purchase (renovation, furnishing, first bills). It pays to list them all before you set the maximum price for the flat.
How much does the notary and the land register entry cost?
Transferring ownership of a property requires the form of a notarial deed, and so a visit to a notary. The notary's remuneration, that is the notarial fee, depends on the transaction value, subject to statutory maximum rates. VAT and the cost of copies of the deed are added to the fee.
Court fees
The notary also collects court fees for entries in the land and mortgage register - for entry of the ownership right, and with a mortgage also for entry of the mortgage. These are fixed fees, independent of the flat's value. The notary passes them on to the court on your behalf.
PCC or VAT - which tax will you pay?
The type of tax depends on whether you are buying on the primary or secondary market. This is one of the more important cost differences between these two buying routes.
- Secondary market: you usually pay the tax on civil-law transactions (PCC), calculated as a percentage of the transaction value. It is usually collected by the notary.
- Primary market: a purchase from a developer is usually subject to VAT, which is already included in the listed price. In such a case PCC as a rule does not apply.
The rates and details are governed by the Ministry of Finance, and the rules can change, so before buying it pays to confirm the current position with a notary or adviser.
What are the costs of a mortgage?
If you finance the purchase with a loan, another group of expenses appears. The bank may charge a commission for granting the loan, requires a property valuation, and usually insurance - for example property insurance or bridging insurance until the mortgage is entered.
On top of this comes the cost of interest spread over the whole repayment period, which depends on the interest rate. It pays to compare offers from several banks, because differences in commission, margin and required insurance can translate into significant amounts over the life of the whole loan.
What to watch for in an offer
When comparing loans, look not only at the interest rate but at the total cost of the loan and the APRC, which also captures additional fees. Check whether the bank requires additional products, for example an account or insurance, and how they affect the terms.
How much does a property agent cost?
If you use an estate agency, you will pay a commission agreed in the agency contract. It may be a percentage of the transaction price or a fixed amount set in advance. The amount and method of settlement should be clearly stated in the contract, which is worth reading carefully before signing.
Commission is an optional cost - you do not have to use an agent. It is worth remembering, however, that a good agency can take over part of the formalities and verification, which can be valuable, especially with a first purchase.
Which expenses appear after the purchase?
After signing the notarial deed, the list of expenses does not end. The most common post-purchase costs include renovation and fit-out, especially in a flat in developer standard, and buying furniture and appliances.
You also have to add ongoing charges: rent to the housing community or cooperative, utilities, and property tax paid to the municipality. It pays to keep a financial reserve so the first months after moving in do not strain the household budget.
Summary: how to plan out the purchase costs
The real cost of buying a flat is the price plus transaction fees, mortgage costs and post-purchase expenses. Before you set the maximum amount you can put towards a flat, list all the items: the notary, PCC or VAT tax, court fees, any agent's commission, and mortgage costs.
Remember the reserve for renovation, furnishing and the first running costs. Such a full accounting will let you realistically assess what flat you can afford and avoid a situation where you run out of funds just before finalising the transaction.
Frequently asked questions
How much are the total additional costs of a purchase?
Do you pay PCC when buying from a developer?
Who pays the notarial fee and the tax?
Which mortgage costs are worth including?
Do I need a financial reserve after the purchase?
The Lendean editorial team prepares guides based on Polish market data and current regulations. Content is reviewed by our subject editors.
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