Legalization of funds from abroad in Poland: What you need to know when buying real estate

Let's start with an important point.
Word «"money laundering"» In most cases, it doesn't sound entirely correct and even scary. In my experience working with clients from the CIS countries, approximately 90% cases are already completely legal money.

These are the means:

• earned at work
• received from business
• accumulated over the years
• received from the sale of real estate or a car
• received as a gift

Therefore, more often than not, it is not about legalization, but about confirmation of the origin of funds.

Simply put, you must be able to explain and document, Where do you get the money?.

What documents confirm the origin of funds?

In simple terms:
If you have documents, there will be no problems.

These could be:

• tax returns
• bank statements
• real estate or car sales contracts
• deeds of gift
• income certificates
• dividends from business
• any official documents confirming savings

If the money was obtained illegally, that's a completely different story.
This article is not intended for such cases.

Should you be afraid of Polish banks and tax authorities?

Many clients think:
How to transfer money to Poland without problems and unnecessary questions?

I'll answer honestly and simply:
All money for which you have supporting documents can be safely shown and used in Poland.

Polish banks operate in accordance with European AML (anti-money laundering) regulations.
So sometimes they may ask:

• documents on the origin of funds
• translation of documents into Polish
• short explanation of the source

Typically a bank employee:

1. scans documents
2. returns the originals
3. records information in the system

And that's where it all ends.

Depositing cash into a Polish bank

Polish banks have certain limits on cash deposits.
But this is not a ban, but a standard banking procedure.

If you have documents on the origin of funds (preferably translated into Polish):

• you can easily deposit money into your account
• the bank will accept the funds
• there won't be any problems

These procedures are related exclusively to the fight against money laundering and terrorist financing.

Cash payments for real estate

Earlier cash payments at purchase of apartments were used more often.
Nowadays, almost all transactions in Poland are carried out via bank transfers.

This:

• safer
• more transparent
• more convenient for the notary
• clearer for the bank

At the same time, the law cash payments not prohibited, but are used less and less.

Methods of transferring funds to Poland

Bank transfer of foreign currency is the safest method

The simplest and most reliable method.

How to do it:

1. Open a foreign currency account in a Polish bank (euro or dollar).
2. You make a transfer from your bank in your home country.
3. Money usually arrives within 1-3 days.

Pros:

• safely
• transparent history of money
• easy to confirm origin
• the entire amount is received immediately

Cons:

• bank commission (sometimes several percent)
• depends on the country and bank

For example:

• There are currently certain restrictions on capital outflow from Ukraine
• The terms and conditions must be clarified with the bank
• There are no strict restrictions from Belarus at the time of writing
• each situation is individual

Transporting small amounts of cash

It is possible to transport money across the border in parts – amounts that do not require mandatory declaration.

This is a legal method provided:

• do you have documents on the origin of the funds
• Can you explain the source of the money?

By transporting money several times, you can collect the required amount in Poland.
But without documents it will be difficult to use such funds.

Transporting a large sum of cash

If you are transporting a large amount at one time:

• it must be declared at the border
• have documents on the origin of funds
• calmly explain the source

If the money is «white», there are no problems.

If you are already in Poland with cash without documents

This is a more complex situation.
Each case is individual, and there is no universal solution.

Much depends on:

• amounts
• residence status
• citizenship
• real estate purchase plans

In such cases it is better get a consultation, so as not to make mistakes.

Important

All information in the article is current. to date and may change.
Banking regulations, international transfers and legal requirements are updated periodically.

Before transferring a large amount of money, it is always worth:

• check the terms with the bank
• check restrictions
• consult a specialist

Conclusion

The main rule is simple:

If you have documents confirming the origin of the funds, there will be no problems in Poland.

You can easily:

• transfer money
• deposit them into the bank
• buy real estate
• use your own funds

Poland is a transparent country with clear rules.
If the money was earned honestly and this can be documented, no difficulties usually arise.

If you have any questions about transferring funds or purchasing real estate in Poland, you can contact me, I will try to help and suggest the best solution.