You have the money for the whole flat and are wondering whether to transfer everything to the developer at once or to buy a developer flat in instalments, that is, to pay in stages. Under a developer agreement (umowa deweloperska) the law largely settles this: you pay into an escrow account (mieszkaniowy rachunek powierniczy) after each construction stage is completed (Article 8(1) and (3), legal position as of October 2026). You normally pay the whole price at once only when you buy a finished flat. If construction is well advanced, some stages are already complete, so you pay the part of the price that relates to them at the start. The law does not provide for a discount for cash, but according to Tabelaofert.pl (January 2026) a cash payment is a buyer’s strongest argument in negotiations. According to NBP, in Q2 2026 the average transaction price on Warsaw’s primary market was 9.2% below the average asking price. That, however, compares different sets of flats and is not a discount on the same unit.
This guide is for someone buying a flat in Warsaw with their own funds, without a mortgage, most often as an investment or as an additional flat. The legal basis is the Act of 20 May 2021 on the protection of the rights of buyers of residential units or single-family houses and on the Developer Guarantee Fund (the “Developer Act”), consolidated text Journal of Laws 2026, item 880. We give rules and figures as of October 2026.
What does “a developer flat in instalments” mean?
It is not a loan and not financing from the developer. The “instalments” are the payment schedule in the developer agreement. The law sets its framework:
- Stages. The project is divided into at least 4 stages. Each equals 10–25% of the total project costs (Article 24(2)). The same percentage decides how much of your payment the bank releases to the developer after a stage from an open account: the stage’s share of costs multiplied by the price of your unit (Article 16(1)).
- When you pay. You pay into the escrow account (MRP) in line with progress of the works, after the given stage is completed (Article 8(1)–(3)).
- When the developer gets the money. With an open account, the bank pays the developer no earlier than 30 days after the agreement is signed and only after confirmation that the stage is complete (Article 16(1)). With a closed account, the developer gets the money only after the deed transferring ownership to you (Article 15, Article 5(10)).
- Who pays for the protection. The Developer Guarantee Fund (Deweloperski Fundusz Gwarancyjny, DFG) contribution is paid by the developer: 0.45% of payments with an open account and 0.1% with a closed one (regulation, Journal of Laws 2022, item 1341, as of October 2026).
If the agreement provides for interest or contractual penalties, it must state their amount (Article 35(1)(14)). Check what triggers them, especially if you are late with a payment. A developer agreement is concluded as a notarial deed (Article 40(1)).
When do you pay in stages and when all at once?
Under a developer agreement the law ties payments to construction progress, not to how much money you have in the bank. The question “instalments or all at once” therefore comes down to the stage the development you choose has reached.
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| Situation | Agreement | How you pay | What protects your money |
|---|---|---|---|
| Construction at an early stage | developer agreement (notarial deed) | in stages, after each stage is completed (Art. 8) | escrow account; with an open account, a refund from the DFG in the cases in Art. 48(1) |
| Construction well advanced | developer agreement (notarial deed) | at the start for stages completed before signing, the rest in stages | as above |
| Finished flat sold straight away under a sale agreement | sale agreement (Art. 3) | the whole amount at the deed | ownership passes to you at the deed; the escrow and DFG rules do not apply; 5-year liability for defects in real estate (Art. 568 § 1 of the Civil Code) |
How much you pay and when, for a flat in an advanced build, is shown by the payment schedule in the draft agreement. Ask for it before you reserve and work out what falls due on the day of the deed. How buying a flat that is already built works is covered in how to buy a ready-to-move-in flat from a developer.
You can set the status and completion date of several developments side by side in one table: compare construction status, completion date and prices of several developments. The completion date tells you how far the build has to go. The exact split of payments appears only in the schedule in the draft agreement.
What do you gain by paying in stages when you have the full amount?
Your money stays with you for longer. The part of the price that relates to future stages stays in your account until those stages are completed. With an open account, what you have paid reaches the developer only after the stage is confirmed. With a closed one, it reaches the developer after the deed transferring ownership.
Under a developer agreement you have a statutory way out if there is a delay. If the developer does not transfer ownership to you by the date in the agreement, you set an additional 120 days. When they expire, you can withdraw from the agreement and still claim the contractual penalty for the delay (Article 43(1)(6) and (3)). If you withdraw under Article 43(1):
- you pay no withdrawal fee and no costs of withdrawal (Article 44(1)–(2));
- the developer returns the funds paid out to it from an open account within 30 days at the latest (Article 44(3));
- if it does not, the DFG takes over the payout (Article 48(1)(6));
- you make the statement in writing, with a notarially certified signature, together with consent to deleting your claims from the land and mortgage register (księga wieczysta) (Article 45(1)).
What you do not get automatically. The law provides neither for a discount for faster payment nor for a surcharge for paying in stages. If the developer’s sales office (biuro sprzedaży) quotes different prices for different ways of paying, ask for both versions in writing and compare the full amount. If you are weighing a flat under construction against a finished one, also work out what waiting for the keys costs. We cover that in what waiting for a flat under construction costs.
What obligations do you take on with a schedule?
Paying in stages means the money must be available on the dates in the agreement. If you keep it in products with a withdrawal period, match that period to the construction schedule.
What you risk if you are late (legal position as of October 2026):
- interest and contractual penalties, if the agreement provides for them (Article 35(1)(14));
- withdrawal by the developer, but only after a written demand for payment with a 30-day deadline, and only if the delay does not result from force majeure (Article 43(7));
- withdrawal if you fail to appear for handover or the deed: the developer must first summon you in writing twice, at least 60 days apart (Article 43(8)). This matters if you buy as an investor and do not live in Warsaw permanently.
If the agreement provides for a contractual penalty that is grossly excessive, a court can reduce it (Article 484 § 2 of the Civil Code, consolidated text Journal of Laws 2026, item 795).
Can you negotiate the price for cash?
You can try, but the law guarantees no discount. Below is data to start the conversation with.
NBP data: Warsaw, primary market (as of October 2026)¹
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| Indicator | Value |
|---|---|
| Average asking price, Q2 2026 | PLN 18,488/m² |
| Average transaction price, Q2 2026 | PLN 16,783/m² |
| Gap between average asking and transaction price, Q2 2026 | 9.2% |
| The same gap, Q1 2026 | 8.8% |
| Change in average transaction price, Q2 2026 | +1.9% q/q, +2.4% y/y |
The gap between asking and transaction prices does not mean developers give 9% off. NBP compares two different sets of flats: those on offer and those sold. It does not compare the prices of the same units.
Market opinion. According to Tabelaofert.pl (guide updated 16 January 2026), the realistic room for negotiation on the primary market is usually 3–7% of the asking price, and the portal regards a cash payment as the buyer’s strongest argument. This is the portal’s assessment, not a statistic. For illustration: at a price of PLN 800,000 that range is PLN 24,000–56,000 (our own calculation).
Before you negotiate:
- Check the price history. The developer publishes on its website the price per square metre and the price of each unit including VAT, with the history of changes (Article 19a(1)–(2)). How to check it is covered in how to check whether a promotional price really fell.
- Compare the price with the list. If the price offered when the agreement is concluded differs from the price on the developer’s website, you can demand an agreement at the price most favourable to you (Article 19a(6)).
- Calculate the price from the area. In agreements concluded from 13 February 2026, the price is the usable area multiplied by the price per 1 m² (Article 5a).
- Put the result in the agreement. Arrangements made in conversation, including a parking space or storage unit, count only once they are written into the agreement.
Price, VAT and indexation: what to check in the draft agreement?
VAT. Prices in the developer’s list are given including VAT (Article 19a(1)). The 8% rate on residential units up to 150 m² applies as of 7 October 2026 (Article 41(2) and (12)–(12c) and Article 146ef of the VAT Act, consolidated text Journal of Laws 2026, item 1263). Before signing, check the rate again and ask what happens to the price if the rate changes.
Price indexation. A government draft amendment to the Developer Act (UD361, published in the RCL on 11 May 2026) would, among other things, ban price indexation. As of 7 October 2026 the draft has not reached the Sejm, so it is not binding law. Check in the draft agreement whether the price can change and in which cases.
Cash literally: banknotes, transfers and the source of funds
“Cash” in a conversation with a developer usually means “without a mortgage”. If you are thinking of paying in banknotes, three rules are worth knowing (legal position as of October 2026):
- A private individual has no limit. The Entrepreneurs’ Law restricts cash payments only in transactions between businesses, above PLN 15,000 (Article 19, consolidated text Journal of Laws 2025, item 1480). If you buy through your own company, the limit applies to you.
- Payments under a developer agreement go to a bank account, namely the escrow account (Article 8).
- The notary informs the GIIF. A notary passes to the General Inspector of Financial Information (GIIF) information on transactions above the equivalent of EUR 15,000 (Article 72(4) in conjunction with Article 2(1)(13) of the Anti-Money Laundering Act, consolidated text Journal of Laws 2025, item 644). In justified cases, obliged institutions examine the source of the money (Article 34(1)(4)(b)). So prepare in advance documents that show it: a sale agreement for another property, a deed of gift or bank statements.
Buying several flats or planning to resell?
If you buy as an investor, look at three issues before signing (legal position as of October 2026):
- PCC. A purchase from a developer subject to VAT is in principle not subject to tax on civil-law transactions (Article 2(4)(a) of the PCC Act, consolidated text Journal of Laws 2026, item 191). The exception concerns precisely investors: if you buy at least six residential units in one or several buildings put up on one plot of land, on the sale agreement for the sixth and each subsequent such unit you pay 6% PCC, even though the developer also charges VAT (Article 7a(1)). This also applies to buying shares in such units (Article 7a(1)) and to buying into co-ownership if at least one co-buyer is liable to pay that rate (Article 7a(2)).
- PIT on sale. Selling within 5 years, counted from the end of the year of acquisition, means 19% tax on the income (Article 10(1)(8) and Article 30e of the PIT Act, consolidated text Journal of Laws 2026, item 592). From which day to count the acquisition under a developer agreement, settle with a tax adviser.
- Assignment before handover. You can transfer rights under a developer agreement only in the form of a notarial deed. The law allows it if the agreement covers no more than one unit and if in the previous 3 years you have not assigned claims under another developer agreement (Article 37a(1)). In the assignment deed you declare that the second condition is met, under pain of criminal liability (Article 37a(4)), and the notary warns you of that liability (Article 40(1a)). The restriction does not apply to a transfer to people in tax groups I and II (Article 37a(2)). If you plan several such transactions, the payment schedule and completion date matter twice over.
If you are a foreigner and do not read Polish
Legal position as of October 2026.
MSWiA permit. A flat (samodzielny lokal mieszkalny) can be bought without a permit from the Ministry of the Interior and Administration (MSWiA) whatever your nationality. The exception is the border zone (strefa nadgraniczna), but Warsaw is not in it (Article 8(1)(1) and (3) of the Act on the acquisition of real estate by foreigners, consolidated text Journal of Laws 2017, item 2278). But if together with the flat you are sold a share in a separate property, for example an access road, MSWiA says a permit is needed, and in practice it takes 2–4 months, sometimes longer. That can push back the date of the deed and so the payment schedule. Ask the developer’s sales office in advance what exactly is covered by the subject of the agreement.
The agreement is in Polish. A developer agreement is concluded as a notarial deed (Article 40(1) of the Developer Act), and the deed is drawn up in Polish. If you do not know Polish and there is no translation, the notary translates the deed personally or through a sworn translator (tłumacz przysięgły) and, before signing, makes sure you understand its content (Article 87 § 1(1) and Article 94 § 1 of the Notaries Act (Prawo o notariacie), consolidated text Journal of Laws 2026, item 614). At your request the notary can additionally draw up the deed in a foreign language (Article 2 § 3 of the same Act). But that is signing day. Check the payment schedule, interest and penalties in the draft agreement earlier, while there is time to ask questions.
Documents on the source of funds. If a payment comes from abroad or from several accounts, gather documents showing the source of the funds in advance: the notary and the bank may ask for them (Article 34(1)(4)(b) of the Anti-Money Laundering Act).
Questions for the sales office when paying cash
- Which escrow account does the development use: open or closed?
- How many stages does the schedule have and which are already complete?
- What amount falls due on the day of the deed and what on later dates?
- Can the price change after signing: if VAT changes or for another reason?
- What interest and contractual penalties does the agreement provide for a late payment?
- Is the price in the sales office the same as in the list on the developer’s website?
- If I pay without a mortgage, could the price or terms be different, and will the developer put that in the agreement?
See also: a developer agreement and a mortgage: what if the bank refuses.
FAQ
Can I pay the developer the whole price upfront?
Under a developer agreement (umowa deweloperska) the law ties payments to construction progress: you pay into an escrow account (mieszkaniowy rachunek powierniczy) after each stage is completed (Article 8(1) and (3), legal position as of October 2026). You normally pay the whole price at once for a finished flat sold straight away under a sale agreement (Article 3 of the Developer Act). If construction is well advanced, you pay at the start for the stages already completed and the rest according to the schedule.
Is buying a developer flat in instalments a loan?
No. The “instalments” are a schedule of payments into the escrow account. The project is divided into at least 4 stages, each equal to 10–25% of the total project costs (Article 24(2), legal position as of October 2026). If the agreement provides for interest or contractual penalties, it must state their amount (Article 35(1)(14)), so check what triggers them.
Will I get a discount for paying cash?
The law does not provide for one, so it depends on your talks with the developer. According to Tabelaofert.pl (January 2026), the realistic room for negotiation is usually 3–7% of the asking price, and the portal calls a cash payment a buyer’s strongest argument. NBP data for Q2 2026 show the average transaction price in Warsaw 9.2% below the average asking price, but that compares different sets of flats and is not a discount on the same unit.
Is there a limit on cash payments when buying a flat?
Not for a private individual. The Entrepreneurs’ Law restricts cash payments only between businesses, above PLN 15,000 (Article 19, legal position as of October 2026). If you buy through your own company, the limit applies to you. A notary reports transactions above the equivalent of EUR 15,000 to the GIIF, so prepare documents showing where the money comes from.
What happens if I am late with a payment under the schedule?
You pay interest or a contractual penalty if the agreement provides for it (Article 35(1)(14)). The developer can withdraw only after a written demand for payment with a 30-day deadline, unless the delay results from force majeure (Article 43(7), legal position as of October 2026). A court can reduce a grossly excessive penalty (Article 484 § 2 of the Civil Code).
Can I resell the flat before handover?
Yes, by assigning your rights under the developer agreement, in the form of a notarial deed. The conditions: the agreement covers no more than one unit, and in the previous 3 years you have not assigned claims under another developer agreement (Article 37a(1), legal position as of October 2026). The restriction does not apply to an assignment to people in tax groups I and II (paragraph 2).
Choosing a development and want to pay without a mortgage? Write to us before your first visit to the sales office: we must register you with the developer before your first independent visit. We will go there together and go through the information prospectus (prospekt informacyjny) and the draft agreement with you, including the payment schedule. We will point out what to ask the developer or a lawyer. On the primary market we charge the buyer no fee (0%). We serve clients in 7 languages.
Jawno · +48 692 649 839 · infojawno@gmail.com
This text is for information only and is not legal advice or tax advice. Legal position as of October 2026.
¹ Source: NBP, residential real estate price database (BaRN), file ceny_mieszkan.xlsx, sheet “Rynek pierwotny”, Warsaw. In NBP data, Q2 covers March–May and Q1 covers December–February. Percentage gaps and q/q and y/y changes: our own calculation from NBP data.