Cadastral tax in Poland? What could it mean for the real estate sector

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According to the table of real estate services, tableofert.pl calculates, taking into account that the tax, like in our western neighbors, would amount to, for example, 1 percent. value of the property, the owner of a 60-meter flat in Warsaw would pay the equivalent of approximately PLN 7,400 per year.

As the Ministry of Development and Technology assures, there are currently no such plans, but at the same time it points out – officials monitor the current situation on the housing market and work on various solutions. According to Robert Chojnacki, CEO of redNet24, a company specializing in the sale of development apartments, a possible new real estate tax would most likely not be a typical cadastral tax. At the same time, apartment owners should be prepared for some changes in the near future.

– Officials are looking for a way, among others on the so-called “flipping”, i.e. buying flats in order to sell them quickly at a higher price, reducing speculation on rental prices or arranging vacancies. Of course, the goal is also to search for new sources of budget revenues, especially for local governments. A possible new form of taxation would shortly reduce real estate prices, which would probably benefit mainly holdings and enterprises with very large capital. On the other hand, in the long run, part of the capital could flow abroad, thanks to investors looking for more favorable conditions for business, says Robert Chojnacki.

Currently in force in Poland Property tax is charged according to the maximum rates specified in the Act on Local Taxes and Fees. In 2021, the maximum rate for a residential building is PLN 0.85 per sqm. real estate. Therefore, the owner of a 60-meter apartment in our country has to pay a fee of PLN 51.00 per year. Cadastral tax differs from real estate tax in that it is calculated on the value of the dwelling. This type of solution was decided by, among others, Germany, Great Britain, Ireland, France, Belgium, Spain, Sweden, Latvia or our Lithuanian neighbors.

Cadastral tax is charged differently from country to country, and its average value ranges from 0.5 to even 2 percent of the property value. Additional factors often have an impact on the amount of tax, such as e.g. location of the apartment – of course, the more prestigious, the higher the fee. This is e.g. beyond our western border. In Germany, the tax depends on the type of property and the region (state) in which it is located (maximum amount of 1%). For comparison, the cadastral tax in the US is as high as 2 percent. up to 2.5 percent the market value of the property.

Taking into account the dynamic increases in housing prices in Poland, the possible introduction of a cadastral tax would seriously hit the pockets of customers, especially individual ones. According to the data from the table of real estate, tableofert.pl shows that in recent quarters, the average prices of real estate on the primary market, offered on the largest residential markets in the country – Warsaw, Tricity, Wrocław, Kraków, Poznań and Łódź, were characterized by an upward trend. At the end of September 2021, you had to pay PLN 12,325 per square meter of your own “M” in the capital, which means an increase by as much as 60.2%. since 2017.

According to Maciej Dymkowski, the managing president of tableofert.pl, any changes to the property tax in the long run would bring significant changes in the real estate sector in Poland.

– Although we are observing a dynamic growth in the market, incl. the activities of professional entities involved in the purchase of flats for rent, private ownership of flats and houses continues to reign in our country. In the event of introducing a kind of cadastral tax on the Vistula River, it will certainly prevent a large part of individual clients from incurring such high costs, and thus may be forced to sell their real estate. Tenants would also get their money’s worth, because apartment owners would be looking for a tax refund somewhere. I predict that we could also observe an immediate decline in interest in expensive real estate from the premium sector – says Maciej Dymkowski.

According to experts, possible protection for Poles who have only one apartment would be the introduction of a cadastral tax on the second or third real estate. To protect the least wealthy citizens, the government should then also consider specific tax thresholds or allowances for specific types of property.


About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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