Poland: Real estate tax rates on land and buildings; tax-deductible costs of sale of real estate

Reports about recent real estate-related developments

Reports about recent real estate-related developments

Article Posted date 26 July 2022

The KPMG member firm in Poland has prepared reports about the following real estate-related developments.

  • The maximum rates of the real estate tax on land and buildings are updated annually for the next fiscal year. According to an official announcement, in the first quarter (Q1) of 2022, the consumer price index was 111.8—representing a price increase of 11.8%, compared to Q1 2021. The maximum rates of the real estate tax, thus, are to increase accordingly.
    • In 2023, the maximum tax rate for land used in commercial activity will be PLN 1.16 per square meter (up from PLN 1.03 for 2022).
    • Also in 2023, the maximum tax rate for buildings or parts thereof used in commercial activity will be PLN 28.78 per square meter of floor area (up from PLN 25.74 for 2022). Read a July 2022 report prepared by the KPMG member firm in Poland
  • The Supreme Administrative Court (SAC) issued a decision in a case concerning a taxpayer that was a party to a contract for the transfer of title to real estate that had secured a promissory note. Under the contract, real estate was transferred to the taxpayer to secure the promissory note. However, the promissory note was not redeemed by the issuer within the prescribed period. As a consequence, the taxpayer acquired the right to satisfy its claims against the security—that is, the real estate. The taxpayer applied for a letter ruling from the tax authority to confirm that the amount of the promissory note and the cost of repayment of the proprietary liability encumbering the real estate constituted costs necessary to sell the real estate. In the SAC’s opinion, such costs constituted an actual reduction of the taxpayer's property, without regard to whether the expense would be incurred only after the sale of the property because the taxpayer was contractually obliged to incur the costs. Without incurring such costs, the taxpayer could not have acquired the real estate in question. Read a July 2022 report prepared by the KPMG member firm in Poland

 

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