Property Tax Settlement

Real estate is an integral part of every well-structured portfolio. Three factors are decisive for the success of such investments. Firstly, the investment in real estate has to be coherent from an economic point of view. Secondly, investment has to be tax-optimised both in the short and long-term and finally, you should not forget about a suitable exit strategy.

In this context a number of questions for the investor/s will arise.

• Share deal or asset deal, open-end or closed-end real property funds – which type of investment is the best in my current position?
• Who is to become the legal or beneficial owner of the property?
• Is a corporation or a partnership the most suitable form of business?
• Where should the company be based taking into consideration double taxation conventions and the applicable national tax legislation?
• Is the transaction subject to foreign withholding tax?
• Is it creditable?
• Can real estate transfer tax or trade tax be avoided?
• Is the deduction of interest expense ensured in spite of interest barrier regulations?
• Could you run the risk of unwittingly violating the law?

The international developments in the field of real estate and asset management have increased the complexity of the appropriate tax and regulatory framework considerably.

With our getsix® real estate tax services, we support our clients in the following areas:

• analysis of existing real estate portfolios;
• development of long-term, tax-optimised strategies for the acquisition;
• restructuring and sale of real estate investments;
• advice on tax optimisation in conjunction with real estate transfer tax and land tax;
• value added tax and income tax;
• advice on cross-border real estate transactions;
• advisory services for the development of open and closed-end real estate funds including product design, product structure and prospectus design;
• advice on the acquisition of large-scale projects such as hotels, holiday parks, shopping centres, commercial real estate or large residential portfolios.

getsix® services in the field of tax compliance:

• handling of the current financial accounting;
• preparation of single-entity financial statements and tax balance sheets;
• tax returns for all types of taxes relating to real estate;
• filing of objections with the authorities and filing of lawsuits before fiscal courts.

Property tax rates in Poland depend on the type and location of the property. This tax is levied annually. The maximum property tax rates permitted by Polish law are updated every year. They are determined and announced by the Polish Ministry of Finance, while individual municipalities decide whether to apply the maximum allowable rate or set a lower one.

For the year 2025, the Minister of Finance has increased the maximum property tax rates. Compared to the 2024 rates, they have risen by approximately 2.7% and are as follows:

• PLN 1.38/m² for land used for business activity,
• PLN 1.19/m² for residential buildings,
• PLN 34.00/m² for buildings used for business activity.

W przypadku osób fizycznych podatek od nieruchomości jest płatny w czterech ratach w terminach:

• 1st instalment: by 15 March 2025
• 2nd instalment: by 15 May 2025
• 3rd instalment: by 15 September 2025
• 4th instalment: by 15 November 2025

If the total tax amount is less than PLN 100, it must be paid as a single lump sum, no later than 15 March 2025.

In the case of legal persons, organisational units and partnerships without legal personality, property tax in Poland is payable in monthly instalments, by the 15th day of each month, for the given month.

There is also increasing discussion in Poland regarding the potential introduction of a cadastral tax, which would significantly raise property-related charges. The cadastral tax is in force in most European countries and is based on the market value of the property, typically amounting to 1% of that value annually.