How to buy a new flat while selling the old one? Four ways to time the transactions

Swapping a flat for a larger or newer one is in practice two transactions that have to be timed together. The most common dilemma is: buy first or sell first? The answer depends on your savings, your borrowing capacity and whether you can live somewhere else for a while. Below we compare four proven scenarios.

Before you choose a scenario: work out three numbers

Every decision will be easier with three figures that are worth knowing right at the start:

• the real value of your current flat – based on a comparison with similar units in the area, not on the price you would like to get,
• the loan balance (if you have one) – that is, how much of the sale price will go to the bank,
• borrowing capacity – how much the bank will lend you now, while the old loan is still being repaid, and how much after it is repaid.

On top of that add the costs of both transactions: the notary's fee and charges for entries in the land and mortgage register (księga wieczysta), PCC tax (civil law transactions tax) on a purchase from the secondary market (2%, with a possible exemption for a first flat – which in a swap usually does not apply), a possible agent's fee, the removal and furnishing of the new unit. Remember too that as a seller you give the buyer the energy performance certificate.

Scenario 1: first you buy, then you sell

This is the most convenient route – you do not have to move twice or look for temporary accommodation. It does, however, require financing the purchase without the money from the sale.

• From savings – if you have them, you buy calmly and sell the old flat without time pressure, and you do not have to accept the first, weak offer.
• From a loan – the bank will assess your capacity, taking into account the instalment of your current loan. If it is enough, you may carry two obligations for a while. After selling the old unit you overpay the new loan. Before you sign the agreement, check whether and for how long the bank can charge compensation for early repayment.

The risk of this scenario: if the sale drags on, you keep two flats for several months.

Scenario 2: first you sell, then you buy

Here you buy with cash in hand – which is a strong argument in negotiations and often lets you take a smaller loan. The problem is a place to live while you search. You have three options:

• renting for a few months – the simplest, but it means an extra cost and two moves,
• deferred handover of the unit – in the notarial deed the parties agree that you will hand over the keys, say, a few weeks after signing the agreement. The buyer then usually expects security, e.g. a contractual penalty for each day of delay or part of the price payable only on handover,
• renting from the new owner – you sell the flat and at the same time conclude a fixed-term tenancy agreement with the buyer. This solution is less common with private units, but can suit an investor who plans to let it anyway.

Scenario 3: buying from a developer under construction

This is the option we at TM Invest recommend most often to people swapping a flat – because it naturally spreads the expenses over time. When buying under construction you usually pay in tranches linked to the stages of the investment, and the developer agreement (umowa deweloperska) sets the date of transfer of ownership even a dozen or so months later. This gives you time to:

• prepare and sell your current flat calmly,
• use the proceeds of the sale for the next tranches or as a down payment for a loan,
• live in the old unit until the new one is handed over (if you plan the sale with a deferred handover).

The condition: the payment schedule must suit your situation. Some developers offer payment of the larger part of the price at the end of the investment – it is worth asking about this before signing the agreement. Browse the current investments in Warsaw and Wroclaw and note the planned completion dates. You will find indicative prices in the summaries of new flat prices in Warsaw and in Wroclaw.

Scenario 4: two agreements timed by one preliminary agreement

If you are buying from the secondary market, you can "reserve" the chosen flat with a preliminary agreement with a distant date for concluding the final agreement, and sell yours in the meantime. Such an arrangement needs a seller who is in no hurry to move out. Two practical remarks:

• do not pay a high deposit (zadatek) if you are not sure you will manage the sale in time – the deposit is forfeited if you withdraw,
• write a specific date for concluding the final agreement into the contract. If no date is set, the Civil Code gives the parties a year to set one, and claims under a preliminary agreement become time-barred one year after the day on which the final agreement was to be concluded.

A variant of this scenario is an exchange agreement – a flat for a flat, with a payment of the difference in value. It requires the form of a notarial deed and the timing of both parties' moves.

Tax on the sale – check the date of purchase

If you sell before five years have passed, counting from the end of the year in which you acquired the old flat, the income from the sale is subject to 19% tax. When swapping a flat for a new one you can usually use the housing relief: proceeds spent on your own housing purposes – including buying a new flat – within three years of the end of the year of sale are exempt. You report a sale before five years have passed on form PIT-39 by 30 April of the following year, even if the tax comes out at zero.

Read also:

• Housing relief 2026 – buying a new flat from the sale of the old one
• Tax on selling a flat within 5 years
• Selling a flat step by step
• How much is my flat worth? How to value it

Frequently asked questions

Summary

There is no single right order – there is the one that fits your finances. What matters most is to know the value of your current flat, the loan balance and your borrowing capacity before you sign the first agreement. If you plan to swap your flat for a new one, ask our expert – we will help value your unit, choose an investment with a suitable payment schedule and, with a credit expert, check your borrowing options.