Guide to Property Taxes in Poland

Nonresidents are taxed on their Polish-sourced income. Married couples are taxed separately.

Taxable income is generally calculated by deducting income-generating expenses from the gross income. Taxable income from all sources is then aggregated and taxed at progressive rates.

Income Tax Rates 2024

Taxable Income, PLN (€) Tax Rate
Up to 85,528 (€19,006) 18%
Over 85,528 (€19,006) 32% on all income over €19,006

Rental Income Tax

Rental income is generally taxed at the progressive rates. The taxable income is computed by deducting income-generating expenses from the gross rent.

Corporate Taxation

Income Tax

Income and capital gains earned by companies are taxed at the corporate tax rate of 19%. Income-generating expenses are deductible when calculating taxable income.

Capital Gains Tax

Capital gains from the sale of real estate are tax-exempt if the individual has owned the property for at least five years before the sale.

Capital gains incurred for properties sold within five years of acquisition are subject to capital gains tax at a flat rate of 19%. The acquisition price and transaction costs are deductible from the selling price to arrive at the taxable gain.

Taxpayers who acquired residential property before January 1, 2007, are subject to different rules. A flat rate of 10% is levied on the sales proceeds less transaction costs.

Value Added Tax (VAT)

VAT is generally levied at a flat rate of 23%. A preferential rate of 8% may apply in some transactions.

The lease of immovable property for the purpose of accommodation (not for business purposes) is VAT-exempt.

Land sales and building sales are generally subject to 23% VAT. The preferential rate of 8% may apply if the residential premises do not exceed 150 square meters.

Property Buying Costs and Taxes in Poland

Transaction Costs

Description Cost Range Who Pays
Property Transfer Tax 2.00% Buyer
Agent Fee Buyer 2.00% - 3.00% Buyer
Agent Fee Seller 2.00% - 3.00% Seller
Legal Fees - Buyer
Notary Fees 0.25% - 3.00% Buyer
Roundtrip Cost 5.13%  
Source: Global Property Guide, PWC    
     

Property Holding Taxes

Real Estate Tax

Property owners are liable to pay this tax. The annual real estate tax liability depends on the location and type of the property. The tax rates are as follows:

Property Qualification Tax per sq. meter, PLN (€)
Land used in business PLN 0.90 (€0.20)
Other land PLN 0.47 (€0.11)
Dwellings PLN 0.75 (€0.17)
Buildings used in business PLN 23.13 (€5.13)
Other buildings PLN 7.77 (€1.73)