New Polish real estate tax regulations take effect from 2025

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

New Polish real estate tax regulations take effect from 2025

Sponsored by

sponsored-firms-mddp.png
Warsaw skyscrapers

Rafał Kran and Łukasz Szatkowski of MDDP summarise a substantial revision of Poland’s real estate tax framework, with new definitions for buildings and structures, and a controversial change concerning construction equipment

One of the largest amendments to Polish real estate taxes (RET) in the past 20 years enters into force in 2025, although it does not constitute a revolution in the principles of taxation. The changes particularly concern the scope of taxable property. Among the real estate taxation rules that have been retained, land will be taxed based on the area, buildings on floor space, and structures on gross book value. The object of these changes is not the introduction of a cadastral tax, although that cannot be ruled out in the future.

The new regulations, which will determine the amount of RET liability for 2025, will mostly affect business entities. This is because this group of taxpayers is the only one obliged to pay RET on structures, the definition of which will undergo the deepest modification. A new, detailed appendix has been added to the Law on Local Taxes and Fees, containing 28 types of structures grouped according to their utility or technical features. However, the regulations still provide for open, undefined definitions, which are likely to cause disputes.

Summary of the main changes under the new regulations

The key changes include new definitions of:

  • A building;

  • structure;

  • A permanent connection to the ground; and

  • A construction object.

Despite the Ministry of Finance’s declared position on maintaining the fiscal status quo, the upcoming changes will certainly involve an increase in the fiscal burden with regard to RET for some enterprises. Those in the industrial sector should be particularly careful about their RET settlements in 2025.

The most controversial element of the new regulation is the broad tax base for technical devices and industrial installations; among others, through the category of construction equipment. It is not only the technical aspect of the asset that matters, but also the function and use. Tanks, silos, , and other facilities related to storage have become particularly sensitive types of assets. The regulation provides for real estate taxation on all components, including the technical part, as structures; i.e., 2% of their gross book value annually.

For some industries, such as the renewable energy sector (RES), the new regulations have been favourably structured. As a result of the generally positive attitude towards green energy, it was possible to guarantee favourable taxation for facilities such as wind farms, photovoltaic farms, and energy storage facilities. They are to be taxed (only) on the construction part; i.e., usually on approximately 20–35% of capital expenditure. Nevertheless, the degree of complexity of the new regulations does not completely exclude the risks of real estate taxation by tax authorities on certain technical equipment serving RES facilities, such as transformers.

Exceptionally, in 2025, taxpayers can take advantage of an extended deadline for filing RET returns, which has been increased by two months, to March 31 2025. However, it is necessary to notify the competent authority in writing and make tax instalment payments within standard statutory deadlines in the amount of the average RET instalment for 2024.

Poland’s real estate tax update: a final word for businesses

The scope of the changes regarding RET is so large that it is worth considering full verification of the property to be taxed with RET. This especially applies to businesses based on a significant amount of real estate, structures, and equipment.

more across site & shared bottom lb ros

More from across our site

The US itself was the biggest loser of tax revenue to American multinationals’ profit shifting, the Tax Justice Network reported; in other news, firms made key tax hires
Identifying who will bear the costs and concerns around confidentiality are issues yet to be resolved, advisers say
As multinationals embed tax technology into their TP functions, a new breed of systems – built on multi-model databases – is quietly transforming intercompany pricing logic
The president described it as ‘one of the most important cases in the history of our country’; in other news, Portugal established a VAT group regime
Clients are facing increased TP audit scrutiny in Hungary. DLA Piper Hungary is therefore using AI and advanced analytics to augment its advice, the firm’s head of TP says
Simpson Thacher & Bartlett and MinterEllisonRuddWatts were among the firms that advised on the deal
AI will mean fewer entry-level roles in tax but also the emergence of new jobs, according to tax expert Isabella Barreto
As World Tax unveils its much-anticipated rankings for 2026, we focus on standout performances by PwC, KPMG and Deloitte across the Asia-Pacific region
The partnership model was looking antiquated even before the UK chancellor’s expected tax raid on LLPs was revealed. An additional tax burden may finally kill it off
The US’s GILTI regime will not be forced upon American multinationals in foreign jurisdictions, Bloomberg has reported; in other news, Ropes & Gray hired two tax partners from Linklaters
Gift this article