Polish buyers' guide to buying property on the Costa del Sol — 2026

This guide is written for Polish nationals buying property on the Costa del Sol in 2026. Polish buyers are EU citizens with full freedom of movement and access to the favourable 19% IRNR rate — but they face two distinctive considerations: Poland uses the Polish złoty (PLN) rather than the euro, creating a currency conversion dimension similar to Swedish buyers; and Poland's inheritance tax framework includes a Group 0 family exemption that effectively eliminates inheritance tax between closest relatives if correctly handled. The five-year Polish CGT exemption also applies to foreign property, making long-term holding tax-efficient. This guide covers all of these in full.

EU free movement — no restrictions for Polish nationals

As EU citizens, Polish nationals have full freedom of movement in Spain. There is no Schengen 90-day limit and no visa requirement. If planning to stay more than three months continuously, register as an EU resident at the Oficina de Extranjería. After five years of continuous legal residence, permanent residency follows automatically.

The NIE

An NIE (Número de Identificación de Extranjero) is required before signing the private purchase contract. Polish nationals obtain this in Spain or at the Spanish consulate in Poland. Allow two to four weeks.

The Poland-Spain double taxation treaty

Poland and Spain have a bilateral double taxation convention. The treaty uses the credit method for property income: Spain taxes Spanish-source income, Poland taxes the same as part of worldwide income but allows a proportional credit (odliczenie proporcjonalne) for the Spanish tax paid. Under the treaty, income from Spanish real estate is primarily taxable in Spain. Polish tax residents declare the income in Poland and claim the credit, so the net Polish exposure is the difference between the Polish rate and the Spanish IRNR already paid.

Rental income — as EU residents, Polish non-residents pay 19% IRNR on net rental income after allowable expenses. This is declared to the in Spain. Polish tax residents must also include this rental income in their annual Polish PIT return and apply the treaty credit for Spanish IRNR paid.

Capital gains — the five-year exemption

Polish tax law provides a complete exemption from capital gains tax on the sale of a property that has been owned for five years or more — and this applies to foreign real estate as well as Polish property. If a Polish tax resident sells a Costa del Sol property held for five or more years, no Polish capital gains tax is payable on the gain, regardless of size. The only obligation is the Spanish 19% CGT (with 3% withheld by buyer at completion on Form 211; settled on Form 210 within four months).

For sales within five years of purchase, Polish CGT at 19% applies, declared on the PIT-39 annual return by 30 April of the following year. The Polish credit for Spanish CGT already paid (19%) under the DTA proportional credit method can significantly reduce or eliminate the Polish liability. Given that both Spain and Poland apply 19% CGT, the net Polish liability after the credit is typically very low or zero for five-year sales — the full amount has already been paid in Spain. The planning message is clear: holding for five years produces the most straightforward tax exit.

Currency — PLN/EUR exchange rate consideration

Poland uses the Polish złoty (PLN). Poland is an EU member state but has not adopted the euro and no firm eurozone accession date has been set. This means Polish buyers face PLN/EUR currency exposure, similar to Swedish buyers with SEK/EUR. The PLN/EUR rate has been relatively stable compared with GBP/EUR — moving approximately 2–3% over a 12-month period in recent years — but it is not pegged and carries real risk over the multi-year period of an off-plan purchase.

Specialist FX brokers (Currencies Direct, TorFX, Wise) offer PLN/EUR rates significantly closer to the interbank rate than Polish banks on large transfers. For off-plan purchases with an 18–36 month construction period, a forward contract can lock in today's PLN/EUR rate for future delivery — particularly valuable given Poland has not set a timeline for euro adoption.

Spanish IRNR — the Spanish annual obligations

As EU residents, Polish non-residents pay IRNR at 19% on imputed income (1.1% or 2% of cadastral value if not renting) or on net rental income after expenses (19%) if renting. Annual Form 210 declaration. On sale: 3% withheld by buyer (Form 211), settled on Form 210 within four months.

Purchase taxes and costs

New-build: IVA at 10%. Resale: ITP in Andalusia at 7%. AJD at 1.2% on mortgage deed. Legal fees 0.5–1.0% plus IVA. Notary and registry approximately 0.5–1.0%. Mortgage arrangement if financing 1.0–2.0%. Budget 12–14% total ancillary cost for a financed new-build.

Polish inheritance tax (podatek od spadków i darowizn)

Poland imposes inheritance tax on Polish residents receiving worldwide assets, including Spanish property. The tax is organised in groups based on the heir's relationship to the deceased.

Group 0 — full exemption for closest family — spouses, children, parents, stepchildren, grandchildren, and siblings can inherit entirely free of Polish inheritance tax, on condition that they report the inheritance to the Polish tax authority (Urząd Skarbowy) within six months of acquiring it. If this reporting deadline is missed, the Group 0 exemption is lost and normal Group I rates apply. This is the most important practical point for Polish family succession planning: the exemption is automatic in outcome but conditional on timely reporting.

Group I rates — for Group I relatives not qualifying for the six-month Group 0 exemption (and son-in-law, daughter-in-law): 3–7% on inheritance above PLN 36,120 (approximately €8,500 at current rates). Group II (nieces, nephews, brothers/sisters-in-law): 7–12% above PLN 27,090. Other heirs: 12–20% above PLN 18,060.

There is no Poland-Spain bilateral inheritance tax treaty. Polish domestic law provides a credit mechanism for foreign inheritance taxes paid. In Andalusia, Spanish ISD for direct family is very low (€1M allowance plus 99% reduction), so the primary inheritance exposure for Polish families is the Polish side — and the Group 0 exemption eliminates it for closest relatives who report correctly.

A Spanish will (testamento) is recommended alongside appropriate Polish succession planning. Under EU Succession Regulation 650/2012, Polish nationals may elect Polish law to govern succession. Ensure both the Spanish notary and a Polish adviser coordinate on the wills to avoid conflict.

The buying process

1. Reservation (reserva) — €5,000–€15,000. Retain an independent Spanish property lawyer.

2. Private purchase contract — binding. Off-plan: all stage payments covered by individual aval bancario. Your lawyer confirms before you sign.

3. Completion — before a Spanish notario. Your lawyer attends or holds power of attorney.

4. Registration — . Four to eight weeks.

Running costs

IBI — €600–€1,200 per year for a standard Marbella apartment. Community fees — €100–€200 per month standard. Annual IRNR declaration on Form 210 — a Spanish gestor for €100–€200 per year.