Investing in property
in France from Poland

In practice, it is a French bank that finances your property in France, under the HCSF standard: a 35% debt ratio, insurance included, and 25 years at most. It looks at your income in zlotys with caution, because its value in euros varies with the exchange rate: a fall in the zloty increases your monthly payment in euros. Not all banks accept non-residents; the choice of banks, the order in which you approach them and the presentation of the application make the difference. A mortgage in zlotys from a French bank is only possible if you mainly earn your income or hold your assets in that currency; most applications are financed in euros.

Also read: which banks lend to expats and how much down payment to plan for.

The 1975 treaty has not been changed on this point by the OECD multilateral convention: Poland continues to exempt property income taxable in France, whereas it has moved to the tax credit method with many other countries. Above €50,000 of taxable capital gain, a surcharge of 2% to 6% is added in France. The €150,000 exemption on the capital gain (French or European national, domiciled in France for at least two years) and the exemption for the former main residence sold no later than 31 December of the year following departure remain available, subject to conditions. As Poland exempts the capital gain, no Polish tax is added to it.

Also read: how the rents of a non-resident are taxed.

The resale of shares in a predominantly real estate company remains taxable in France (article 13 of the treaty). But Poland may treat a French SCI differently from France, which may change the treatment of your rents: to be studied with a Polish adviser before buying through a company.

The right choice depends on your project and your country: compare with the rental income tax calculator.

The 1975 treaty provides that Poland exempts the rents and capital gain of a property located in France, with the possibility of taking them into account to set the rate applied to your other income: this is the exemption with progression clause. Depending on how your Polish income is taxed, your French rents may have to appear in your annual return, with the foreign income annex (PIT/ZG), even if they are not taxed there. Since 2023, private rental has been taxed in Poland at a flat rate, and how to apply this rule is debated: review the situation with a Polish tax adviser before your first return.

There is no treaty between France and Poland on inheritance. France always taxes your property located in France. Poland, for its part, taxes a property located abroad only if the heir is of Polish nationality or lives permanently in Poland on the day of death. The spouse, descendants, ascendants, brothers and sisters, the spouse’s children and a parent’s spouse are then exempt, provided that the estate is declared to the Polish authorities within 6 months of the judgment or the notary deed recording the inheritance (form SD-Z2).

The steps of the ImmoPourExpat method, from the first call to letting →