What does buying a flat really cost? Every cost beyond the price

Buyers ask us this at the first meeting more often than anything else: how much do I need on top of the price. The answer is “usually between 4 and 7 per cent”, but that number means nothing until you know what it is made of. So here it is, broken down and calculated on a concrete example.

Agency commission

Our starting rate for a buyer is 3.5% of the price net, which is 4.305% including VAT. It is negotiable and depends on how much work the transaction takes. Some of the properties we handle carry no buyer commission at all – the seller pays the whole fee and the listing says so. It is worth asking at the very start, because on a property above one million złoty this is the largest item on the list.

Transfer tax (PCC)

Buying on the secondary market means 2% of the price in transfer tax. The notary collects it at signing and passes it to the tax office, so you do not have to remember it separately – you only have to have it. There are two exceptions. First, a purchase from a developer on the primary market carries VAT in the price and no transfer tax applies. Second, if this is your first flat or house on the secondary market and you have never owned another residential property, you are exempt. On a flat at 1.2 million złoty that is a difference of 24,000 złoty, which is why we always check this one condition with our clients.

Notary, copies and court fees

The notary’s fee is capped by regulation and depends on the value of the transaction; for flats, single-family houses and building plots it is half the maximum rate. VAT is added on top. You also pay separately for copies of the deed – usually around 300 złoty – and court fees: 200 złoty to register ownership in the land register, 100 złoty to open a new register for a newly built flat, and with a mortgage 200 złoty for the mortgage entry plus 19 złoty of tax on creating it.

Mortgage costs that never appear in the deed

If you buy with a mortgage, there is more beyond the notarial deed: the bank’s arrangement fee, the property valuation, property insurance and often life insurance, sometimes a bridging insurance premium until the mortgage is registered. These differ so much between banks that averaging them is meaningless – which is why we work exclusively with Notus Finanse and ask for a comparison before the client picks a bank. The adviser does it free of charge.

Example: a flat at 1,200,000 złoty

Secondary market, bought with a mortgage, no first-home relief:

• agency commission: 42,000 zł net, or 51,660 zł including VAT,
• transfer tax at 2%: 24,000 zł,
• notary fee including VAT: about 3,180 zł,
• copies of the deed: about 300 zł,
• court fees including the mortgage entry: 419 zł.

That is roughly 79,600 złoty in total, or 6.6% of the price. The same flat bought from a developer on the primary market comes to about 55,700 złoty of extra costs – the transfer tax disappears and 100 złoty for opening the land register appears. And if the first-home relief applied on the secondary market, the costs would fall to about 55,600 złoty.

How to work it out for a specific property

Every one of our listings carries a purchase-cost calculator. You enter the price, tick whether you are buying with a mortgage and whether it is your first home, and it shows each item separately along with the total. It calculates exactly according to the rates described above, so you can take the result into your meeting at the bank. If anything differs from what another agency told you, call us and we will explain every line.