KRAKOW, POLAND - Ajay Ahuja

KRAKOW, POLAND

Population

38.63 million persons

PopulationGrowth

-0.030%

Land Area

304,510 sq km

Currency & exchange rate

1 zlotych (Z1$) = 100 groszy

(~ 0.143 GBP)

GDP-PPPMethod

271,945.0 millions of US dollars

GDP Growth

1.03%

GDP Per Head

7,039.0 Thousands of US Dollars Per Person

Financial

Interest Rate

Inflation Rate

3.2%

National Bank

National Bank of Poland

Political

The new constitution that came into force in October 1997, the legislative power in Poland is vested in a bicameral national assembly consisting of a 460-seat lower assembly and 100-seat upper assembly. Elections are by proportional representation.

The Democratic left (SLD) won most seats during the last elections of September 2001, but was did not gain a significant majority. The current Parliament is a coalition government consisting of the SLD, UP and PSL. On March 1^st 2004, the PSL left the government, leaving the SLD to have major control. Only a day after EU accession, Prime Minister Miller resigned and the former finance minister Marek Belka was nominated to succeed him

Belka has asked Parliament for a year to prove himself and must win a vote of confidence in parliament to retain his post. In June 2004 he believed he could gather enough support to be confirmed in his position and is currently acting as caretaker Prime Minister.

President Kwasniewski has appointed Marek Belka as the new Prime Minister. Belka must win a vote of confidence in Parliament to retain this Post.

Social Security

Yes

Languages

Polish

Customaries

The Polish are friendly, hard-working people and are very pleasant when meeting foreigners. However, one should take note that there are vast differences between traditions and practices between people in the cities such as Krakow and the little rural villages. Catholicism plays an integral part of everyday life. Shaking hands upon meeting a person is the norm. Smoking is restricted in some public buildings. You should also note that taking photographs of military installations could land you in trouble.

Ethnic Make-up

Polish	97.0%
German	1.0%
Ukrainian	1.0%
Byelorussian	1.0%

Tax

Income Tax

Capital Gains Tax

Non residents are subject to a final withholding tax of 20% on fees received for membership on management boards, commission, service and management contracts, interest, copyrights, trademarks, designs and know-how.

Taxable income (PLN)		Tax on lower amount	Rate on excess
Exceeding (PLN)	Not exceeding (PLN)	(PLN)	%
0	37,024	0	19
37,024	74,048	6,516.	30
74,048	-	17,623	40

Taxed at a flat rate of 10%

Description

A return to the socialist led government does not seem to have the potential to disturb the future of a vibrant Polish economy. However, market reforms and general reform attempts have caused some social disruption and persistently high unemployment rates, currently at around 18% and rising.

On a historical note, Poland was the first country in the central bloc to regain the levels of GDP that it had enjoyed before the fall of communism.

It’s major industries are Machine building, iron and steel, coal, shipbuilding, glass, beverages, chemicals, textiles and food processing. Its major trading partners are Germany, Italy, the Netherlands, Russia, Ukraine France and the UK.

Public finance reform is important for Poland’s long-term economic outlook. A new initiative proposed earlier this year called the ‘Hausner Plan’ sets to rationalise public finances and cutting social spending.

Investor Profile:

Cash & Equity Investor

Pension Investor

Holiday Investor

Retirement Investor

Downshifter Investor

Business Investor

University Investor

Category:

Bronze

Population:

Total

British

734,400 (2002)

8,000

Climate:

Hours of Sunshine Per Day in Summer

Days of Rain Per Year

January

July

Average

Water Temp.

Seven

450mm per year

0C/33F

21C/71F

N/a

Proximity to:

Airport

Beach

Nearest City

Krakow’s John Paul II International Airport of Balice is situated conveniently on the outskirts of the city, just 15 km (about ten miles) from its centre,

N/a

Katowice

Restaurants and bars:

There is no shortage of places to drink, eat, and stay merry late into the night in Krakow. Notably, the huge central Grand Square in the heart of the historic Old Town district and its environs look like they never sleep, at least most of the year save winter. And recently trendy new hangouts are launched also in the nearby Kazimierz quarter almost by the month.

Krakow has always been Poland’s gourmet Mecca. And the recent decade brought about a genuine restaurant explosion all over the city owing to the hectic efforts of aspiring restaurateurs, native ones as well as immigrants

Sports and leisure facilities:

Sadly, sport activity is not the routine of an average Krakow dweller. The city abounds in fine jogging paths but few natives take advantage of it. Also bikeways crisscrossing metropolitan Krakow and its environs seem underused despite the city’s vocal group of ardent cyclists. So, hiking remains the most popular outdoor activity, and no wonder seeing that the Krakow region is famous for the beauty.

Hunting and fishing are centuries-sanctioned sports in Poland. And both–especially the latter–retain considerable following in Krakow

Transport:

Public Transport

Roads

Krakow is one of Poland’s main railroad junctions. Five trunk lines connect the city with the world. Its central Krakow Glowny station is situated most conveniently in the very city centre, close to the Old Town historic district.

Expresses run also to all major cities in Poland. Notably, most convenient is the shuttle express service to and from capital Warsaw where the 300-km trip takes two hours and half or so.

In addition to this, arrive expresses from Germany’s Berlin, Dresden, Frankfurt and Leipzig, Austria’s Vienna, the Czech Republic’s Prague, Hungary’s Budapest, Rumania’s Bucharest, Slovakia’s Bratislava and Kosice, Ukraine’s Kiev, Lvov and Odessa.

With the city’s abundant road connections, no other major city in Poland can boast better accessibility from abroad. Krakow lies at one of key European crossroads, en route from the West via Germany to the East via Ukraine and from Scandinavia to the Mediterranean via Austria.

Within Poland bus companies compete fiercely on the most popular routes. And in the Krakow region minibus services have become the chief means of commuting apart from car.

Crime rate:

Poland is generally safer than most European countries, east or west. And Krakow is safer than other major cities in Poland. Petty crime seems pretty common in the city and whereas mugging remains sporadic, pilfering is rampant.

Main types of employment

Krakow is Poland’s fourth biggest manufacturing centre, with steel, tobacco and pharmaceuticals being the key industries. At the same time the city is second only to the capital Warsaw as regards the service sector.

Future plans:

Poland’s labour costs stay at a third of Germany’s, and the country boasts a sizeable and fast-expanding internal market, enjoys a healthy GDP growth, and remains a model of political and economic stability in the region. With much foreign investors already (and investors flocking from across Europe after EU accession): from multinationals to fairly small enterprises, Krakow appears a particularly good place with some 8.5 million people living within a radius of 100 km. And the city is situated at Europe’s crucial crossroads between Germany and Ukraine and between Scandinavia and the south of the continent.

Yield range

6 – 8%

Type of property

Entry Price

Rent-

Peak

Rent-

Off Peak

Average Annual Yield

2 bed apartment

£22,000

£150

£140

3 bed apartment

£34,000

£240

£190

7.7%

3 bed townhouse

£33,000

£240

£190

Detached

£50,000

£290

£250

6.5%

Demand for letting

Peak

Off peak

High

Medium

Finance and leisure scores:

Total (out of 10)

Financial (out of 5)

Leisure (out of 5)

Flights scheduled from:

Most major cities throughout the UK. Some smaller airlines from regional airports.

Typical cost of flights:

Peak

Off Peak

£100 - £230

£80 - £170

Operators:

Austrian Airlines, British Airways, British Midland Airways, Lufthansa, and Malev fly passengers to Krakow besides the Polish national carrier LOT.

Description:

Krakow is Poland’s capital of culture. The city boasts the best museums in the country and some best theatres. It counts two Nobel Prize winners in literature among its residents. It is also home to one of the world’s oldest and most distinguished universities. No wonder Krakow was named a European City of Culture in 2000.

Entry prices are low and there’s lots to do here. There’s a vibrancy to this area and you’ll have no problem letting your place to those young city professionals. The list of airlines flying to this area is growing month by month and flight prices are falling. I reckon Easyjet and Rynair will be flying here soon. This will increase demand for these properties I’m sure. Above average capital gain is likely.

Hot Website:

www.krakow-info.com

Estate Agents:

Name

Address

Tel

Web

Firma Kontrakty Nieruchomosci

Plac Wolnica 9, 31- 060 Krakow, Poland

(+48 12) 2920016

www.fk-nieruchomosci.pl

biuro@fk-nieruchomosci.pl