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Converting a commercial unit into a flat in Poland: what changes for your mortgage

Can you buy a Polish commercial unit (lokal użytkowy) and turn it into a flat? The change-of-use notification, technical requirements, the land register entry and how banks lend before and after the change.

Piotr Sułkowski · mortgage expert, KNF RHA0013513
Updated:

In short

A commercial unit in Poland can become a flat, but the bank looks at the land register entry on the day of the loan agreement. As long as the register shows a commercial unit, the bank lends as for commercial premises: only some banks, usually with a 20–30% deposit and a higher margin. A standard residential mortgage is possible after the change of use has been notified without objection, the unit meets the technical requirements for a flat (including at least 25 m²) and the land register entry has been changed.

What the bank looks at

In the Polish land register (księga wieczysta) a unit is either residential or for other use. The bank, the valuer and the notary follow that entry. A unit with a kitchen and a bathroom that is registered as commercial remains commercial for the bank. Converting it therefore has two parts: the change of use at the building authority and the change of the land register entry.

How the change of use works

Check that the local zoning plan allows housing in the building. Then file a change-of-use notification with the county building authority (starostwo) before the change, also online through e-Budownictwo. The authority has 30 days to object (art. 71 of the Polish Building Law). If the works need a building permit, the permit decides the change. Next you obtain a certificate that the flat is a self-contained unit, update the building register and apply to the court to change the land register entry. A notification filed after the conversion has no legal effect.

Technical requirements for a flat

Under the Polish technical conditions regulation a flat should have at least 25 m², rooms at least 2.5 m high and daylight. Small or windowless units, such as basement shops, often cannot become flats. Ask an architect before you buy. If the works affect common parts of the building, such as the facade, entrance or risers, you need the consent of the owners' association.

Mortgage before and after the change

Before the land register entry changes, banks treat the unit as commercial: they usually finance 70–80% of its value and charge a higher margin. Conversion costs usually come from your own savings. After the entry changes, you can ask your bank for better terms or refinance with another bank on residential terms. The Polish exemption from the 2% transfer tax (PCC) for a first home applies only to residential units, so buying a commercial unit to convert means paying PCC.

The full description in Polish, with a step-by-step procedure, a cost example and a checklist: Lokal użytkowy na mieszkanie: zmiana sposobu użytkowania a kredyt.

Frequently asked questions

Can I get a residential mortgage for a commercial unit I want to convert?

Usually not straight away. The bank follows the land register on the day of the agreement, so before the change it lends as for commercial premises. Residential terms become possible after the land register entry changes.

How long does the change of use take?

The building authority has 30 days to object to the notification. Then you need a self-contained unit certificate, a building register update and a land register entry, each with its own waiting time.

Can a 20 m² commercial unit become a flat?

Usually not. The technical conditions regulation requires a flat to have at least 25 m².

Sources

  1. Building Law of 7 July 1994, art. 71 (ISAP, Polish)
  2. Act on ownership of premises, art. 2 and 22 (ISAP, Polish)
  3. Regulation on technical conditions for buildings of 12 April 2002 (ISAP, Polish)
This guide describes general rules and typical bank practice as of October 2026. Details

It is not legal or tax advice and not a bank offer. Each bank sets its own criteria, and the lending decision is always made by the bank.

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