Tax department

Tax aspects of property investments

Investing in real estate entails certain obligations in property tax. This tax applies to owners and holders of land, premises, buildings etc. Therefore, before making an investment decision, it is worth exploring all tax aspects of property investments.

The amount of tax payable depends on two elements: the property area and its destination. Intended use of property affects the rate by which the property area is multiplied. This rate has the lowest value for residential buildings and the highest for commercial estates.

Generally, tax obligation begins from the first day of the month following the month in which the circumstances giving rise to the tax obligation appeared (e.g. the purchase of property). However, the Polish tax system leaves some possibilities for tax optimization when investing in property.

It is worth noting that taxpayers engaged in business activity must pay not only the property tax but also income tax on sale of the property. However, if between the first day of the month following the month in which assets are withdrawn from business activities and from the date of their sale 6 years have passed, the proceeds from the sale of these assets does not constitute income from business activity.

CGO Legal Law Firm provides consulting services related to the tax aspects of property investments.

If you have any questions, do not hesitate to contact us.