He started the housing program. Polish Deal – apartment without own contribution

Polish Deal it's not just changes in the tax system. The reform is also intended to improve the demographic situation in our country. The programme was largely aimed at supporting families and young people planning to start a family.

Demographic problems have existed in Poland for years. This is supported by a number of important factors, such as ageing society, economic emigration and later family establishment.

The fact that Poles decide to start a family more and more later, and some of them will give up on this project, is friendly with negative demographic results. Social policy therefore focuses its actions on improving the situation.

The government tries to encourage Poles to start a family in many different ways, or through the program 500+, whether by income tax exemption for both parents in an amount not exceeding first tax threshold for holding four And more kids. Similar encouragement from the reform Polish Deal is an apartment program without own contribution.

President of Poland Andrzej Duda 15 November 2021 signed Act dated 1 October 2021 (Journal of Laws of 2021, item 2133)[1] the guaranteed housing credit, while the provisions entered into force 27 May 2022.

The Act assumes that the State will act as a guarantor of the capital injection through Bank Gospodarstwa Krajowego to 20% credit up to a maximum amount 100 You're all right. It is worth noting that these guarantees are not a monetary contribution.

This structure is intended to guarantee the lending bank that the borrower, although not having the money to cover its own contribution, is able to repay it. Therefore, this possibility is addressed not to all persons wishing to own their own corner, but only to those who have creditworthiness.

Both single individuals and couples and families with children will benefit from the support.

The purpose of the program is to live without own contribution, as follows:

• the provision of the guarantee for part of the mortgage credit drawn up to purchase the apartment with the simultaneous elimination of the own contribution requirement;
• assistance in repayment of the loan if the household is enlarged by second or another child (20,000 PLN for second and 60 you in case of third and another);
• Minimum loan duration — 15 years;
• a loan granted with a guarantee can be granted in Polish zlotys, which will protect the long-term commitment against exchange rate risks;

Guaranteed loans will be provided by banks that sign BGK.

In order to receive such support from the government in the form of a guarantee of the monetary sum for own contribution, the borrower and the members of his household may not be owners of another dwelling unless two or more children are members of the household. In that case, they may jointly hold one other apartment, but not more than 50m2, when the children are two, 75m2, when the children are three, and 90m2, when the children are four. For families with five or more children, there is no metre limit.

Overall, the programme should be assessed positively. Young families are increasingly faced with a lack of money even for their own payment, let alone buying an apartment or house for cash. Also, post-pandemic conditions and the situation of war in Ukraine are not conducive to the enrichment of society.

But there are some drawbacks to this program, one of the largest is the upper limit per square metre of dwelling on the primary and secondary markets. Limits are determined individually for different cities, first, Which is obvious, it's definitely too small a price.

For example, in Warsaw it will be quite difficult to find an apartment on the primary market for little more than 10,000 PLN. Another huge problem not only for those willing to use the program, but also for other potential borrowers, is the rapidly shrinking creditworthiness.

Unfortunately, we are currently living at a time when inflation has reached a two-digit index, and all indicates that growth will progress.

There is no doubt that the new housing scheme must already be amended, as its current assumptions no longer correspond to the market situation, thus significantly reducing the number of persons who can benefit from State guarantee aid when they receive a loan on their own premises.

Author: Darya Bannaya

Younger tax consultant. Graduate of Law at the Faculty of Law and Administration of the University of Warsaw, graduate of Global Business, Finance and Management in Warsaw School of Economics. Winner of the Ministry of Finance competition “Tax of Leaders” 7. edition.

Conducting trainings and conferences for foreigners in tax aspects of conducting and establishing business in Poland. He specializes in tax law, advising clients on current matters relating primarily to income taxes. Author and co-author of a tax law publication.