You live in Warsaw, you do not want a mortgage, and you are looking for a flat from a developer that you can pay for in parts while it is being built. Such “instalments” exist, but they are neither a loan nor a shop-style payment plan. They are the payment schedule in the developer agreement (umowa deweloperska): the money goes into a special bank account, not into the developer’s hands, and you pay after each stage of construction is completed.
This guide is for someone without Polish citizenship who has lived in Warsaw for some time and is buying with their own funds. Legal provisions are stated as of October 2026. The 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). This text is for information only.
Can a foreigner buy a flat from a developer without a permit?
Yes. Acquisition of real estate by a foreigner generally requires a permit from the minister responsible for internal affairs, but the Act exempts a self-contained residential unit, whatever your nationality (Article 8(1)(1) of the Act on the Acquisition of Real Estate by Foreigners, consolidated text Journal of Laws 2017, item 2278). An acquisition made in breach of that Act is void (Article 6(1)), so for other property, a plot of land for example, first check whether a permit is needed. More in our guide can a foreigner buy a flat in Poland.
Buying a flat does not by itself give you a right of residence or permanent residence. The Act on Foreigners contains no such basis. If you plan to regularise your stay, treat the two matters separately.
How do staged payments work when buying from a developer?
What advertisements call “instalments” is, in the developer agreement, a payment schedule. The agreement must state the amounts, dates and method of payments into the escrow account (Article 35(1)(9)), the start and completion dates of the works (point 12), and interest and contractual penalties if the parties provided for them (point 14).
The key difference: you pay by the progress of construction, not by the calendar. A payment falls due once a stage is completed, and the developer tells you so on paper or another durable medium (Article 8(1) and (3)). A development is split into at least 4 stages, and each corresponds to 10-25% of the total cost of the development, not of the price of your flat (Article 24(2)). For a completed stage the bank pays the developer the stage’s share multiplied by the price of the flat (Article 16(1)), and your payment is calculated the same way.
The purchase runs in this order:
- Information prospectus. The developer gives it to you free of charge on a durable medium before the developer agreement or the reservation agreement that precedes it (Article 21). The general part of the prospectus and the price per m² of each unit including VAT must also be published on the developer’s website (Article 19a(1)). What to check is covered in the developer information prospectus.
- Reservation agreement. The reservation fee may not exceed 1% of the price in the prospectus and counts towards the price. The developer transfers it to the escrow account within 7 days (Article 32(2)-(4)). Details: the developer reservation agreement.
- The developer agreement must take the form of a notarial deed (Article 40(1)).
If construction is already well advanced, some stages may be complete on the day of signing. Their shares then have to be paid on the first date in the agreement, so the first payment can be large. Ask about it before you reserve.
Where does your money go and what protects it?
A developer starting sales must conclude an escrow account agreement with a bank of one of two kinds (Article 6(1), Article 7(1)):
- open: the bank releases funds to the developer as stages are completed, no earlier than 30 days after the agreement and after the stage has been verified by a person with building qualifications designated by the bank (Article 16(1), Article 17). The developer receives the payments for the last stage after ownership is transferred by notarial deed (Article 16(2));
- closed: the developer receives everything after ownership has been transferred to you free of encumbrances (Article 5(10), Article 15).
The costs of running the account and of verification are borne by the developer, who cannot deduct them from your payments (Article 14, Article 17(3)). With an open account your payments are protected by the Developer Guarantee Fund (DFG), which refunds money, among other cases, after a decision in the developer’s insolvency proceedings not to continue construction and after you withdraw from the agreement if the developer has not returned the funds within 30 days (Article 48(1)). The developer pays the DFG contribution: the rates are 0.45% for an open account and 0.1% for a closed one (regulation of 21 June 2022, Journal of Laws 2022, item 1341).
Can you withdraw if construction is delayed?
The Act gives 12 grounds for withdrawal (Article 43(1)). Two are the most useful:
- the agreement lacks required elements, contradicts the prospectus, or the prospectus was not delivered, is incomplete or untrue: withdrawal within 30 days of signing (para. 1, points 1-5, para. 2);
- the developer has not transferred ownership on time: you set an additional 120-day deadline, and once it passes without result you may withdraw and keep the right to a contractual penalty (para. 3).
The statement of withdrawal is made in writing with a signature certified by a notary (Article 45(1)). The developer returns funds received from the bank within 30 days (Article 44), and the bank returns the rest of the account balance without delay (Article 18(1)).
What if you are late with a payment?
The developer may withdraw only after a written demand for payment with a 30-day deadline from delivery, unless the delay is caused by force majeure (Article 43(7)). If you fail to turn up for handover or at the notary, it may withdraw after two written demands delivered at least 60 days apart, provided the absence is not due to force majeure (para. 8). Interest and contractual penalties apply only if they are written into the agreement (Article 35(1)(14)), so read that point before you sign. If the purchase later needs a loan, see also developer agreement and a refused mortgage.
A foreigner’s situation: language, PESEL and the source of funds
Language. The Developer Act has no provisions on the language of the prospectus or the agreement. Notarial acts are done in Polish, but at your request the notary may also do them in a foreign language, alone or with a sworn translator (Law on Notaries, consolidated text Journal of Laws 2026, item 614, Article 2 § 3). If you do not know Polish, the deed is translated (Article 87 § 1(1)). Book the translator ahead of the date and ask for the draft deed in advance.
PESEL. It is not compulsory for identification at the notary. Without it, the date and country of birth, nationality, the series and number of the document and the address, if known, are recorded (Polish AML Act, Article 36).
Source of funds. If you pay with your own money, expect questions. For a notarial deed where the value of the transaction exceeds the equivalent of €15,000, the notary informs the General Inspector of Financial Information within 7 days of drawing up the deed (Article 72(4)-(5)), and an obliged institution may examine the source of funds in justified circumstances (Article 34(1)(4)(b)). There is no cash limit for a consumer (the PLN 15,000 limit in Article 19 of the Entrepreneurs’ Law applies to transactions between businesses), but payments into the escrow account are in practice bank transfers. Gather documents in advance that usually help: bank statements, tax returns for previous years, the sale deed of a previous flat, a gift agreement with proof of transfer. This is practice, not a requirement of the Act.
A loan for part of the price. If you still consider a loan, note that a mortgage for a consumer may be granted only in the currency in which the consumer earns most of their income or holds most of their funds, or indexed to it (Article 6(1) of the Mortgage Credit Act, consolidated text Journal of Laws 2025, item 720). Settle the details with the bank or a credit adviser.
What to check in the schedule before signing
- Which stages are already complete and what amount falls due on the day of the deed.
- Whether the price is subject to indexation. Look in the prospectus and the draft agreement.
- The full price of the flat. If the developer’s sales office describes a different way of paying than the prospectus, ask for it in writing and check what the draft agreement says.
- Interest and contractual penalties for delay (Article 35(1)(14)).
- The current version of the prospectus. If the planned date of a stage has already passed, ask for a new version.
For a market reference on prices, see the catalogue of new flats in Warsaw.
FAQ
Do developers sell flats “by instalments” without a mortgage?
It is not a loan but a payment schedule in the developer agreement. You pay into an escrow account (mieszkaniowy rachunek powierniczy) after each stage of construction is completed (Article 8(1) and (3) of the Developer Act, as of October 2026). The amounts, dates and method of payment must be written into the agreement (Article 35(1)(9)).
Does a foreigner need a Ministry of the Interior permit to buy a flat?
No. A self-contained residential unit can be bought without a permit, whatever your nationality (Article 8(1)(1) of the Act on the Acquisition of Real Estate by Foreigners, as of October 2026). Other property may need a permit, and an acquisition made in breach of the Act is void (Article 6(1)).
Do I need a PESEL number to sign at the notary?
A PESEL is not compulsory for identification at the notary. If you do not have one, the notary records your date and country of birth, nationality, and the series and number of your ID document (Polish AML Act, Article 36, as of October 2026).
My Polish is weak. Can the agreement be in my language?
Notarial acts are done in Polish. At a party’s request the notary may also do them in a foreign language, alone or with a sworn translator (Law on Notaries, Article 2 § 3), and where a party does not know Polish the deed is translated (Article 87 § 1(1)). The Developer Act does not regulate the language of the prospectus or the agreement.
What happens if I miss an instalment?
The developer may withdraw only after a written demand for payment with a 30-day deadline, unless the delay is caused by force majeure (Article 43(7) of the Developer Act, as of October 2026). Interest and contractual penalties apply only if the agreement provides for them (Article 35(1)(14)).
What happens to my money if the developer goes bankrupt?
With an open escrow account the Developer Guarantee Fund (DFG) refunds your payments in the cases listed in Article 48(1), for example when the insolvency proceedings result in a decision not to continue construction (as of October 2026). The developer pays the fund contributions, not the buyer.
This text is for information only and is not legal advice.
Chosen a development and want to pay in stages, without a mortgage? Write to us before your first visit to the developer’s sales office: we must register you with the developer before your first visit on your own. We will go there together and go through the information prospectus and the draft agreement with you, including the payment schedule. We will point out what to ask the developer or a lawyer. We serve clients in seven languages. On the primary market we charge the buyer no fee. Our fee on the primary market arises from agreements with developers.
Jawno · +48 692 649 839 · infojawno@gmail.com