Poland is an ancient nation that was conceived near the middle of the 10th century. Its golden age occurred in the 16th century. During the following century, the strengthening of the gentry and internal disorders weakened the nation. In a series of agreements between 1772 and 1795, Russia, Prussia, and Austria partitioned Poland amongst themselves. Poland regained its independence in 1918 only to be overrun by Germany and the Soviet Union in World War II. It became a Soviet satellite state following the war, but its government was comparatively tolerant and progressive. Labor turmoil in 1980 led to the formation of the independent trade union "Solidarity" that over time became a political force and by 1990 had swept parliamentary elections and the presidency. A "shock therapy" program during the early 1990s enabled the country to transform its economy into one of the most robust in Central Europe, but Poland still faces the lingering challenges of high unemployment, underdeveloped and dilapidated infrastructure, and a poor rural underclass. Solidarity suffered a major defeat in the 2001 parliamentary elections when it failed to elect a single deputy to the lower house of Parliament, and the new leaders of the Solidarity Trade Union subsequently pledged to reduce the Trade Union's political role. Poland joined NATO in 1999 and the European Union in 2004. With its transformation to a democratic, market-oriented country largely completed, Poland is an increasingly active member of Euro-Atlantic organizations.
Warsaw
Warsaw is situated astride Vistula River in the Mazowieckie province of east central Poland and has a population of approximately 2 million people. It has been the capital of Poland for the last four centuries and is the country's largest city and principle cultural and economic centre. Warsaw was almost completely destroyed during World War II and has been extensively rebuilt over the last 60 years. The reconstructed Old Town is now a UNESCO World Heritage site. The city is divided into 11 districts with the major commercial districts concentrated on the west bank of the Vistula River. The east bank is largely devoted to residential districts.
- Population 38,163,000
- Capital Warsaw; 2,200,000
- Area: 312,685 square kilometers (120,728 square miles)
- Language: Polish
- Religion: Roman Catholic
- Currency: zloty
- Life Expectancy: 74
- GDP per Capita: U.S. $9,700
- Literacy Percent: 100
Population & Religion
Poland has a population of 39m of which 2m live in the Capital Warsaw. 97% of the population are Polish, just over 1% are German with the remainder being Byelorussian and Ukrainian. 95% of Poles are Catholic with Protestant and Eastern Orthodox being the leading minority religions.
Education:
The city has numerous higher education institutions, a large number of which are private colleges specialising mainly in finance, banking, marketing and management. Some of Warsaw's most renowned institutions include Warsaw University, Warsaw University of Technology, and the Main School of Farming and Central School of Commerce. The student population of the city is comprised of nearly a 250,000 people.
Poland has a free market economy with an annual growth rate of 3-4% and an inflation rate of 2%. Its major industries are the manufacturing of machines, iron, steel glass, coal mining, textiles and food processing. It has attracted more investment from blue-chip British companies than any other ex- communist country. Its other major international trading partners are Germany, Italy, Russia, Netherlands, France & the Ukraine’s.
BOOMING ECONOMY
The strong economic upturn observed in 2006 continued in the first half of this year. Gross domestic product expanded by 6.8% in H1 2007 compared to the same period last year, driven by rapid growth in domestic demand, including both consumption and capital investment.
INCREASING EMPLOYMENT
The acceleration in the economy has transformed the labour market. The average monthly employment increased by 3.2% y-o-y in the first half of this year, and the registered unemployment rate is currently around 11.6%. Unemployment is anticipated to drop as low as 11.4% in 2007, down from 14.8% in 2006. A skilled labour shortage has also created significant wage pressures. The average gross monthly wage jumped by 8% in H1 2007 compared to a year ago with a forecast 10% y-o-y increase by the end of 2007.
Current account
The widening foreign trade deficit is one of the major factors behind a growing current account imbalance. Most of Poland's imports are capital goods needed for industrial retooling and for manufacturing inputs, rather than imports for consumption. Therefore, a deficit is expected and should even be regarded as positive at this point. In H1 2007, the current account deficit totalled €5.7bn, i.e. up by more than two-fifths on the same period last year. The current account deficit for the year should remain at a moderate level, coming in at not more than 4% of GDP.
CONVERTOR
Warsaw's Economy
Since the collapse of the Eastern Bloc Warsaw has been the focus of Poland's economic restructuring with most major Polish companies and international companies choosing to locate themselves in the capital such as Coca-Cola, Amatil, General Motors, Nestlé and Procter & Gamble.
According to figures published by the city's council, Warsaw's economy is largely based on the service sector, which employs more than 70 percent of the workforce. One of the biggest developments in this sector has been in banking and finance. The city is home to both the National Bank of Poland and Warsaw Stock Exchange, which reopened in 1991 after being closed down some 50 years earlier. In addition, many other Polish banks and dozens of major foreign banks operate in the city.
The manufacturing industry in Warsaw has undergone a number of changes since Poland embraced a market economy. The size of the workforce employed in this sector has reduced quite considerably, as has the number of state owned enterprises, while the number of foreign companies is increasing all the time. There has also been a shift towards the high technology industries.
Tourism
In May 2004 Poland became a European Union Member State. Since then it has become a very popular tourist destination, with Lodz, Gdansk and Krakow in particular benefiting from the introduction of low cost flights to and from the United Kingdom.
After a century of occupation by Austria and Russia, Poland regained its independence at the end of WW1. In 1939 Western and Central Poland were invaded by Nazi Germany and a fortnight later eastern Poland was occupied by Russian Forces. In 1941 the Nazis occupation extended to most of the country following the German attack on Russia. Approximately 5million Poles died during WW2. Many other fled the country and joined the Allied forces with many Polish pilots serving in the British Air Force. In 1945 it was liberated from the Nazis by the Russian Red Army who having occupied the country imposed Communism upon it. At the time of the Hungarian Uprising (1956) and the Prague Spring (1968) there were unsuccessful protests against Communism.
By the late 1970's opposition to the Communist authorities became stronger and the Solidarity Movement, born in the shipyards at Gdansk was formed. The election of the late pope John Paul 11 in 1979 and his public endorsement of Solidarity on a visit to Poland a few months later made it impossible for the ever popular Solidarity to be silenced.
In 1989 an agreement between Solidarity and the Communist authorities, led to the first elections in Poland for 60 years. The outcome of these elections was that Poland became the first former Eastern Bloc country to overthrow Communism and a few months later Solidarity leader Lech Walesa became President.
Local Infrastructure:
Warsaw Okecie International Airport is Poland's principle airport and one of the most modern and well equipped in Eastern and Central Europe. It is situated just 10 kilometres (6 miles) south of the city centre and caters direct flights to and from numerous cities on all continents.
Warsaw has several international railway stations including Warszawa Centralna (Warsaw Central), Warszawa Wschodnia (Warsaw East), Warszawa Zachodnia (Warsaw West) and Warszawa Gdanska. These offer links to destinations throughout Europe including Berlin, Moscow, Prague and Vienna.
Within Warsaw, the bus and tram networks, which run between 5 AM and 11 PM, connect all parts of the city, while the one line metro system links the city to the suburbs in the south.
Standard of Living:
Warsaw offers its inhabitants a wealth of entertainment opportunities. It has a thriving nightlife, numerous bars and restaurants and more than 30 professional theatres. It is also home to dozens of museums and galleries as well as the National Philharmonic Orchestra. Throughout the year the city also plays host to a variety of international festivals including the Frederic Chopin International Piano Competition, the International Modern Music Festival 'Warsaw Autumn' and the International Jazz Festival 'Jazz Jamboree'.
Green Warsaw:
As part of the 2002 Quality of Life Survey, published by Mercer Human Resource Consulting, Warsaw received a score of 103 for its environmental rating, which takes into account the level of air pollution in the city together with the efficiency of its waste disposal and sewage systems. This score is above those of several other East European cities, including Belgrade, Moscow and Bucharest, and only just below those of cities such as London and Rome.
Q. How much does the Polish solicitor charge and what service does he provide?
A. €100 + VAT (included in KC’s after sale fee)
Q. How much does the Land Registry cost?
A. 2%
Q. What is the Annual Rental income Tax?
A. 19%. There is a dual Tax Treaty between the UK/Ireland and Poland. This means you would only pay tax on this property in Poland.
Q. What are the Service Charge payments?
A. Service charge is determined by the owners of the apartments and is paid by the tenants. For the first 6 months after completion, the developers will manage the property and will charge apprx 6-7 ZLT per sqmt per month.
Q. Who pays the annual Property Tax (Council Tax)?
A. The tenant. As well as Electricity, Gas & Water.
Q. What is the CGT in Poland?
A. 19%
Q. Can I get my own decorator to finish up the Developers Finish?
A. Yes. However, KC is able to offer discounted prices for different finish packages.