How to Verify a Polish Developer Before Buying

Before you sign a contract, confirm the developer’s legal standing, financial health, and compliance with the Developer Act. On average, Warsaw developers charge 8‑23 % VAT and 20 % of the price as a down payment, while the median primary‑market price in Ursynów is PLN 13 887 /m² (RCN, 2024‑11‑05 to 2025‑12‑19). A quick KRS search, land‑title check and escrow account verification can save you tens of thousands of zlotys.

1. Why the checks matter

• KRS (Krajowy Rejestr Sądowy) lists the company’s registration, directors and capital. A missing or suspended KRS entry is a red flag.
• Księga wieczysta (land‑title register) confirms the developer owns the plot and has no liens. It also shows the type of property (e.g., residential, commercial).
• VAT and escrow: Under the Developer Act (20 May 2021), payments go to a residential escrow account and are protected by the Developer Guarantee Fund (DFG). If the developer defaults, the DFG covers you.

2. The data you need

Sources: RCN, NAWROCKI catalogue, NBP.

3. Step‑by‑step verification process

1. Search the KRS: Use the official portal (https://ekrs.ms.gov.pl/) to confirm the company exists, its legal form and registered capital.
2. Check the land‑title: Visit the electronic land‑title portal (https://ekw.ms.gov.pl/) and enter the plot number. Verify the developer’s ownership and that no encumbrances exist.
3. Confirm VAT status: Ask the developer for their VAT registration number. Cross‑check it with the Ministry of Finance’s VAT register.
4. Verify the escrow account: Request the account number and confirm it is a residential escrow (mieszkaniowy rachunek powierniczy). The developer should provide the account details in the contract.
5. Check DFG coverage: Ensure the developer is a member of the Ubezpieczeniowy Fundusz Gwarancyjny (UFG). The fund’s website lists active members.
6. Compare prices: Use RCN data to compare the developer’s asking price per m² with median transaction prices in the same district. A price above 20 % of the median may indicate overpricing.
7. Read the contract: Have a Polish‑speaking lawyer review the umowa deweloperska (developer agreement) and the information prospectus.

4. Common pitfalls and how to avoid them

• Hidden VAT: Some developers add 23 % VAT on the part of the floor area above 150 m². Verify the exact split.
• Escrow misuse: If the developer directs payments to a personal account, the buyer loses protection.
• Unregistered developers: A missing KRS entry may mean the company is dissolved or fraudulent.

5. Practical checklist

Financial Overview and Typical Costs

When buying a new flat from a developer in Warsaw, the price you see already includes VAT, so the most common extra outlays are:

• Mortgage‑related costs – the reference NBP rate is 3.75 %, WIBOR 3M is 3.91 % (2026‑11‑02). Adding a typical bank margin of 2.25 % gives a loan rate of about 6 %. An example loan for the same flat (80 % LTV, 25‑year term) results in a monthly instalment of roughly 3 788 PLN.
• Escrow account and Developer Guarantee Fund (DFG) – required by the Developer Act of 20 May 2021. The escrow account holds all buyer payments; the DFG provides an additional safety net if the developer defaults. There is no separate charge, but the escrow arrangement may delay the release of funds by 1‑2 weeks after each payment.
• Optional services – parking spaces, storage units, or premium finishes are taxed at 23 % VAT and are priced separately in the developer’s catalogue.

For a quick cost comparison across districts, see the Warsaw Property Prices per District which includes both primary‑market medians and secondary‑market figures.

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Timeline from Reservation to Handover

The process of purchasing a new development follows a fairly predictable schedule, but exact dates depend on the specific project and the developer’s construction timeline.

Delays are most common during the construction phase, especially if the developer encounters permitting issues or material shortages. Monitoring the developer’s map of investments can give early insight into the progress of multiple projects in the same area.

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Documents Checklist and How to Access Official Registers

Verifying a developer’s credibility relies on a handful of public records. All of them are available online and can be reviewed without cost.

1. KRS (National Court Register) entry – Search the developer’s name on the Krajowy Rejestr Sądowy. Check the registration number, date of incorporation, and the list of shareholders. A stable shareholder structure and a long operating history are positive signals.
2. Land and mortgage register (księga wieczysta) – Use the Elektroniczne Księgi Wieczyste to confirm that the land on which the project is built is free of encumbrances and that the developer holds a valid title.
3. Building permits and zoning decisions – These are posted on the local municipal website; the developer should also provide copies. Verify that the permitted building area matches the advertised floor‑area ratio.
4. Developer Guarantee Fund (DFG) membership – The fund’s website UFG lists all registered developers. Membership is mandatory for projects that began after 1 January 2022.
5. VAT and tax compliance – Check the developer’s VAT status on the Polish Tax Office portal. A clean tax record reduces the risk of unexpected fiscal claims.

Collecting these documents early prevents last‑minute surprises and forms the basis of the practical checklist you will use when signing the final contract.

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Typical Mistakes and How to Avoid Them

Even experienced buyers can fall into traps when purchasing off‑plan. Below are the most frequent errors and practical safeguards.

• Relying solely on marketing brochures – Brochures often highlight only the best‑case scenario. Always cross‑check the advertised price per m² with the new developments catalogue and the RCN transaction data for the same district.
• Skipping the escrow‑account verification – Confirm the escrow account number with the notary before any transfer. The account should be a dedicated residential escrow (mieszkaniowy rachunek powierniczy) as required by law.
• Under‑estimating additional costs – Many buyers forget the notary fee, possible court fees, and the 23 % VAT on parking spaces. Use the mortgage borrowing capacity calculator to see the full financial picture.
• Ignoring the developer’s construction track record – Look for completed projects in the same district; the map of investments shows which developers have delivered on time.
• Delaying the mortgage application – Banks often require a property appraisal before the final contract is signed. Starting the application as soon as the pre‑sale contract is signed reduces the risk of funding gaps.

By following the steps outlined above and using the official registers, you can significantly lower the risk of an unpleasant surprise after the handover.

6. How NAWROCKI Real Estate helps

As a buyer’s agent for new‑build flats, we:

• Compare every developer’s price per m² against RCN transaction prices in the district.
• Read the umowa deweloperska and information prospectus for hidden clauses.
• Negotiate better terms and a lower price with the developer.
• Track the payment schedule and ensure funds go to the correct escrow account.
• Assist with the technical acceptance (odbiór techniczny) of the flat. In most developments, the developer pays our fee, so the service is free for you.

If you’re ready to buy a new flat in Warsaw and want expert guidance through every step, contact us today: /kontakt.

This article is general information, not legal, tax or financial advice. Consult a notary, lawyer, tax adviser or mortgage broker before making a decision.

Sources

• Ustawa z 20 maja 2021 r. o ochronie praw nabywcy lokalu mieszkalnego oraz Deweloperskim Funduszu Gwarancyjnym (ISAP)
• NBP — Baza cen nieruchomości mieszkaniowych (ceny ofertowe i transakcyjne, kwartalnie)
• Krajowy Rejestr Sądowy — wyszukiwarka podmiotów
• Elektroniczne Księgi Wieczyste — Ministerstwo Sprawiedliwości