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Moving abroad while repaying a Polish mortgage: the bank, insurance and the instalment

You are moving abroad and still repaying a mortgage in Poland. Can the bank terminate the loan, how to pay the instalment from a salary in euro, insurance, renting out the flat, tax and the 2% loan subsidies.

KredytPolska editorial team
Updated:

In short

Moving abroad is not in itself a reason for a Polish bank to terminate your mortgage. The law allows termination when you breach the conditions of the loan or lose the ability to repay (art. 37 of the Polish mortgage credit act). Before you go, give the bank your new address and contact details, check the conditions of any reduced margin and decide how you will pay the instalment from a salary in another currency. Check whether your policies cover you abroad, and tell the insurer if you rent the flat out when the policy requires it. Rent from a flat in Poland is taxed in Poland, and with the 2% loan, renting out or moving out for at least 12 months ends the subsidies.

Can the bank terminate the loan because you moved abroad

Not for the move itself. The Polish mortgage credit act lets the bank terminate the agreement when the borrower has not met the conditions on which the loan was granted or has lost creditworthiness, with 30 days' notice (art. 37(1)). Before that, if you fall behind, the bank must send a payment demand with at least 14 business days to pay and tell you that you can apply for restructuring (art. 33). A loan repaid on time from a salary abroad is as good for the bank as one repaid from a salary in Poland. The real risk is a letter sent to an old address that nobody collects, so update your address, e-mail and phone number in the bank first.

What to check in the agreement

If a reduced margin depends on conditions, such as your salary being paid into an account at that bank, ask the bank in writing whether a regular transfer from your foreign account will meet the condition. When you move your tax residence abroad, update your tax residence declaration in the bank (CRS rules). The loan stays in złoty: the act ties the loan currency to the currency of most of your income or assets when the loan is granted (art. 6(1)), and converting an existing loan is the bank's decision, not your right. The simplest way to pay is to transfer euro to your Polish account and exchange it at a rate you choose, keeping a reserve of a few instalments in złoty.

Insurance and the flat

Under the Polish Civil Code you must tell the insurer about changes in circumstances during the policy if the policy says so (art. 815(2)); renting out the flat or leaving it empty for a long time can be such a change. This rule does not apply to life insurance, but check whether your life and job-loss policies cover living and working abroad. If you rent the flat out, the rent is taxed in Poland even when you live abroad (limited tax liability, art. 3(2a) of the PIT act): private rental is taxed at a flat 8.5% of revenue up to 100,000 zł a year and 12.5% above that, in the PIT-28 return by 30 April of the following year. With the 2% loan (bezpieczny kredyt 2%), renting out or lending the flat, or moving out for at least 12 months, ends the subsidies unless the other borrower still lives there; tell the bank within 30 days.

The full description in Polish, with a calculator showing how the exchange rate changes your instalment: Wyprowadzka za granicę a kredyt hipoteczny.

Frequently asked questions

Can a Polish bank terminate my mortgage if I move abroad?

Moving abroad is not in itself a reason under the law. The bank may terminate when you breach the loan conditions or lose creditworthiness (art. 37 of the mortgage credit act). Keep paying on time and give the bank your current address and contact details.

Can I switch my złoty mortgage to euro after moving?

You have no statutory right to do so; converting an existing loan is the bank’s decision. It is usually simpler to keep paying in złoty, exchanging euro at a good rate and keeping a reserve on your Polish account.

Do I pay tax in Poland on renting out my flat after I move abroad?

Yes. A person who does not live in Poland pays Polish tax on income earned in Poland, including rent from a flat located here: 8.5% of revenue up to 100,000 zł and 12.5% above, in the PIT-28 return.

Sources

  1. Act of 23 March 2017 on mortgage credit, art. 6, 33, 37 (Polish)
  2. Civil Code, art. 815 (Polish)
  3. Ministry of Finance, podatki.gov.pl: rental income, flat-rate tax (Polish)
  4. Act on the family housing loan and the safe 2% loan, art. 9b, 9c (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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