Not only every foreigner, but also every native resident of Poland would like to have a private home in the country. Many people may say that it is not at all profitable and convenient, and that it is better to rent an apartment or a house on a monthly basis. However, having your own place will give you confidence in the future and open up many prospects for you.
Prices for housing in Europe, especially in large cities are particularly high, which makes it very difficult to buy your own home. Today we will tell you about the new program «Pierwsze Mieszkanie», which will help you to become a happy owner of an apartment or house in Poland. Enjoy reading this article!
What is the «Pierwsze Mieszkanie» program and who is it intended for?
It is no secret that Poland often announces new social programs for Polish citizens, foreigners who live legally in Poland and also for refugees. Social programs help residents to receive material and social assistance, as well as to make life in Poland much more comfortable. Bright examples of such programs are «Dobry Start» and «Rodzina 500+», which we have already described in our blog.
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On July 1, 2023, the social program «Pierwsze Mieszkanie» was officially launched, which translates as «first housing». And a little bit ahead of the curve, we can say that the program has been very successful and is very popular in Poland. The program «Pierwsze Mieszkanie» is designed for people under 45 years of age who have never had their own home. The official website has detailed information on how to join the program.
The essence of the program «Pierwsze Mieszkanie»
First of all, we would like to say that between July and September 2023, more than 60 thousand people applied for the program. And as of today, banks are receiving a steady 3,000 new applications each week. So why has the first home program become so popular in Poland? Such a social program has two principles – a safe loan at 2% and a housing account.
The first option «Bezpieczny Kredyt 2%» allows you to take a favorable mortgage at 2% per annum. The loan amount will not be able to exceed 500 thousand PLN for one person and no more than 600 thousand PLN for a whole family. Such a favorable loan will be granted for 10 years, after which its holders will have to repay the debt according to the market interest rate, which is 2% per annum, and the state will pay extra and cover the difference in the loan rate.
The second option «Konto Mieszkaniowe» provides for opening a special housing account. A housing account is an analog of a regular savings account in a bank, where you can keep your savings. However, the housing account differs from a regular account in that it is not subject to income tax. That is, the owner of such an account will not have to pay 19% to the state treasury. Special rules apply:
The minimum payment per month for a housing account must be at least 500 PLN;
The maximum payment per month for a housing account must be no more than 2000 PLN;
The minimum number of payments per year must be at least 11;
Housing account holders are obliged to buy a home no sooner than after five years (this is the accumulation period).
Example of «Pierwsze Mieszkanie» program work
→ Example of operation of the program on the principle of a safe loan at 2% per annum: Just imagine that a young family of three (a woman, a man and a child) takes out a 30-year loan of 550 thousand PLN, then the first month the family will have to make a payment of 2832 PLN and subsequent payments over ten years will amount to 3172 PLN. If this family had not taken advantage of the social program, their first payment would have been almost twice as much – 5405 PLN.
→ Example of operation of the program on the principle of a housing account in the bank: You live and work in Poland. You have joined the «Pierwsze Mieszkanie» program and opened a personal housing account in one of the available banks. You manage to save 1500 PLN per month, which you leave in your housing account every month. The housing bonus can cover the annual inflation, while every year the bonus increases significantly. By cashing out the money from the housing account after a period of time, you will receive a guaranteed return and will be exempt from paying 19% tax, which will give you the opportunity to save up and buy a home.
In conclusion, such a program is especially beneficial for young families who need their own housing. In the case of a preferential program at 2%, you can simply make contributions to the bank every month, and eventually become the owners of their own homes. And if you just rent an apartment, you pay about the same amount for housing, but the apartment is not yours.
