Whether you are purchasing, holding, or disposing of real estate in Poland, you will encounter a number of distinct taxes and charges at each stage. Buyers on the secondary market are subject to a 2% civil-law transaction tax (PCC), whereas purchasing a new-build from a developer attracts VAT at either 8% or 23%. Sellers face no dedicated sales tax on the transaction itself, but any profit realised within five years of acquisition is liable to a flat 19% personal income tax. Ongoing annual property tax is modest and calculated on the basis of floor area, with rates set locally by municipal authorities.
| Item | Details |
|---|---|
| Transfer tax (PCC) — secondary market | 2% of market value (paid by buyer); 0% on first apartment purchase from secondary market (as of 2024) |
| VAT on new-build property | 8% (residential ≤150 m²) or 23% (standard rate), paid to developer (as of 2025) |
| Capital gains tax on property | Flat 19% PIT if sold within 5 years of purchase; exempt after 5 years (as of 2025) |
| Annual real estate tax (RET) | Area-based; set by municipalities within Ministry of Finance caps — verify current rates with local tax office (as of 2025) |
| Notary fees | Regulated by law; capped at PLN 10,000 for most transactions (as of 2025) |
| Rental income tax | Flat 8.5% up to PLN 100,000; 12.5% above threshold (as of 2025) |
Which taxes and charges apply when purchasing property in Poland?
Two principal tax regimes govern property purchases in Poland. VAT is charged exclusively on properties acquired directly from a developer through the primary market, whereas the civil-law transaction tax (PCC) applies in all other cases. Establishing which regime governs your purchase is therefore the essential first step in working out your total acquisition costs.
PCC (civil-law transaction tax) — secondary market purchases
PCC is collected by the notary handling the transaction and is set at 2% of the property’s market value, with the obligation falling on the buyer. In structure, this resembles stamp duty in other jurisdictions, though Poland differs in applying a single flat rate to the full market value rather than using a tiered band system.
Since 2024, first-time buyers acquiring their first apartment on the secondary market are no longer required to pay the 2% PCC. This represents a considerable saving — on a PLN 500,000 apartment, the relief amounts to PLN 10,000. Buyers benefiting from this exemption must still file the PCC-3 declaration, noting the exemption.
From 1 January 2024, a PCC rate of 6% was introduced for buyers acquiring a sixth or subsequent residential unit within the same building or residential complex. This elevated rate is specifically directed at bulk investors accumulating multiple dwellings within a single development.
VAT — new-build purchases from developers
Where the seller is a business entity, VAT is generally payable. The standard rate of 23% applies in most cases. A reduced rate of 8% applies to subsidised housing and to residential premises not exceeding 150 square metres. Importantly, VAT and PCC are mutually exclusive: a transaction subject to VAT is not also subject to PCC, so you will pay one or the other depending on the nature of the purchase.
Notary fees
Notarial fees are governed by law and are calculated by reference to the transaction value. The maximum fee is determined by the Regulation of the Minister of Justice and can reach up to PLN 10,000. For transactions conducted under preferential conditions — such as social housing schemes or purchases within government programmes — the cap is reduced to PLN 7,500.
Land register fees and agent commissions
Beyond the main taxes, buyers should budget for notary fees (typically 0.1–0.3% of the property value), legal representation (approximately 0.5–1% of the purchase price), and any agency commissions, which are freely negotiable rather than fixed by law. Total additional costs for buyers typically fall in the range of 3–4% of the property value. Once the notarial deed is executed, the notary submits an application to the relevant court to update the land register, formally recording the transfer of ownership.
Worked example — secondary market apartment, PLN 600,000
| Cost item | Rate | Amount (PLN) |
|---|---|---|
| PCC transfer tax (2nd+ purchase) | 2% | 12,000 |
| Notary fee (maximum) | Capped | up to 10,000 |
| Land register court fee | Fixed | ~200 |
| Legal/agent fees (est. 1%) | ~1% | ~6,000 |
| Estimated total additional cost | ~28,200 |
Figures are illustrative and should be verified with a Polish notary or tax adviser. Always check current rates with the Polish National Revenue Administration (KAS).
Which taxes and charges apply when selling property in Poland?
Poland does not impose a specific sales tax on property disposals. Sellers do incur notary fees associated with the transaction, though by convention these are frequently covered by the buyer unless a different arrangement is set out in the preliminary contract. That said, sellers may face a significant tax liability in the form of personal income tax on any profit realised — the rules governing this are addressed in detail in the following section.
Seller’s liabilities at a glance
- Personal income tax (PIT) on gain: Where the seller has held the property for fewer than five years, they are required to submit a property sales tax return (PIT-39) following the disposal.
- Notary fees: The cost of the notarial deed is a matter for negotiation between the parties, though it is customarily borne by the buyer. The arrangement should be set out explicitly in the preliminary agreement.
- Estate agent commission: Agency fees in Poland are not prescribed by law; they typically fall in the range of 1.5% to 3.5% of the sale price and may be allocated to either party or shared, depending on what is agreed in the agency contract.
- Legal fees: Sellers sometimes engage their own legal advisers, especially where the transaction is complex or involves a foreign buyer.
There is no equivalent of a capital gains surtax or seller-side transfer duty in Poland. The primary financial exposure for sellers — beyond professional and agency costs — is potential personal income tax on the profit from the sale. Always confirm the current position with a qualified Polish tax adviser prior to completing any disposal.
How is capital gains tax calculated on property in Poland?
Poland does not operate a standalone capital gains tax. Instead, gains on disposals are brought within the Corporate Income Tax (CIT) or Personal Income Tax (PIT) framework. For individuals selling residential property, the relevant provisions sit within the PIT rules and have some distinctive characteristics compared with capital gains regimes in other countries.
The five-year rule
As a general principle, the sale of real property is not taxable where it takes place more than five years after the close of the tax year in which the property was acquired. This means that property purchased in 2018 or earlier can be sold in 2024 without triggering any tax charge. The five-year period runs from the end of the calendar year of acquisition, not from the specific date of purchase — a distinction that can be meaningful in practice.
The applicable tax rate
Where the exemption does not apply, the gain is subject to a flat rate of 19%. The taxable gain is computed as the difference between the proceeds of sale and the deductible costs, increased by the cumulative amount of any depreciation allowances previously claimed on the property.
Allowable deductions
The original acquisition price and documented transaction costs are deductible in arriving at the taxable gain. Eligible deductions include brokerage fees, purchase-related costs, and expenditure on improvements to the property. Thorough documentation of renovation works and other costs can therefore meaningfully reduce the tax exposure on a future sale.
The residential reinvestment exemption
Even where the five-year exemption is unavailable, capital gains tax can be sidestepped if the net proceeds are directed towards “property purposes” within two years of the disposal. Qualifying uses include the purchase of an apartment, house, or land plot; repayment of a mortgage; or the conversion of non-residential premises into residential use. This mechanism operates in a manner broadly comparable to rollover relief in other jurisdictions and can be a particularly valuable planning tool for those upsizing or relocating within Poland.
Non-residents
Gains arising from the disposal of Polish real estate are subject to Polish tax regardless of where the seller is resident for tax purposes. The flat 19% rate applies uniformly. Foreign sellers may be subject to withholding tax, and the position under any applicable double taxation treaty should be assessed carefully. Tax residency certificates and a Polish tax return may be required in order to avoid double taxation. Always take advice from a cross-border tax specialist before proceeding.
Worked example — sale within 5 years
| Item | Amount (PLN) |
|---|---|
| Sale price | 700,000 |
| Original purchase price | 500,000 |
| Documented renovation costs | 40,000 |
| Purchase transaction costs (notary, PCC) | 15,000 |
| Taxable gain | 145,000 |
| PIT at 19% | 27,550 |
These figures are illustrative. Verify allowable deductions with Poland’s National Revenue Administration (KAS) or a qualified local tax adviser.
Taxpayers must report income from a property disposal on a PIT-39 return, which must be filed by 30 April of the year following the sale.
Are there ongoing annual property taxes in Poland?
Poland levies an annual Real Estate Tax (known in Polish as podatek od nieruchomości, or RET) which is, by international standards, quite low. Crucially, it is not based on the market value of the property but is instead calculated by reference to the floor area and the category of use. This sets Poland apart from systems such as the US property tax model, which links the charge to an assessed market value, or the UK council tax system, which uses property valuation bands. In Poland, two apartments of identical size in the same municipality could attract precisely the same annual tax bill regardless of their respective market values.
Who sets the rates?
RET rates are set annually by individual municipalities (gminas) within maximum limits prescribed by the Ministry of Finance. Because local authorities retain the discretion to set rates below those caps, actual amounts can differ considerably from one location to another. Buyers should therefore check the applicable rate with the relevant local tax office rather than relying on national averages.
Residential property rates
RET is charged annually on all land and buildings regardless of whether the owner is resident in Poland. For residential properties, local municipalities typically set rates in a range broadly equivalent to €0.17 to €1.19 per square metre, meaning that a 100-square-metre apartment in Warsaw might generate somewhere between €50 and €120 in annual RET. The Ministry of Finance updates the maximum permissible rates each year in line with inflation, so it is important to confirm the current figures with your local tax office (urząd skarbowy).
Commercial property rates
RET extends to both residential and commercial premises, but the rate applied to properties used for business purposes is higher than that for residential use. The distinction between residential and commercial use is therefore an important one for mixed-use property owners.
Major changes from January 2025
Significant amendments to the RET framework came into force on 1 January 2025. Under the revised legislation, all definitions relevant to RET — including the concepts of building and structure — are now contained directly within the Local Taxes and Fees Act, which serves as the primary legislative source for RET purposes. Previously, determining whether a given asset fell within the scope of RET required cross-referencing the Construction Law, which created uncertainty in a number of cases.
How and when do you pay?
Individual property owners are not required to file an annual RET return. Instead, the municipal tax authority in the area where the taxable property is located issues an administrative decision each year specifying the total amount of tax due. This decision is typically sent to the taxpayer in the early months of the tax year. The resulting liability is payable in four instalments, by the following statutory deadlines: 15 March, 15 May, 15 September, and 15 November.
How does inheritance tax apply to property in Poland?
Polish inheritance tax is charged on the value of assets and property rights located in Poland that pass to a beneficiary on the death of the previous owner. Unlike estate tax regimes found in some other countries — where the charge falls on the deceased’s estate as a whole before assets are distributed — in Poland it is the heir who bears the tax liability, calculated on the value of what they personally receive.
Tax groups and thresholds
Beneficiaries are assigned to one of three tax groups depending on their relationship to the deceased. Each group benefits from a separate tax-free threshold (figures as of 2024–2025; verify current figures with the Polish National Revenue Administration):
- Group I (spouse, children, grandchildren, parents, siblings): exempt up to PLN 36,120.
- Group II (more distant relatives): exempt up to PLN 27,090.
- Group III (non-relatives): exempt up to PLN 5,733.
Where the value of the inheritance exceeds the relevant threshold, tax is charged progressively on the excess. For Group I: up to PLN 11,833 — 3%; PLN 11,833–23,665 — PLN 355 plus 5% of the excess; over PLN 23,665 — PLN 946.60 plus 7% of the excess. Group II and Group III face higher rates applied to the same bands. Always verify current thresholds and rates with a local notary or tax adviser, as these figures are subject to periodic revision.
Full exemption for immediate family
Members of the immediate family falling within Group I may benefit from a complete exemption from inheritance tax, subject to the condition that the SD-Z2 declaration is submitted to the relevant tax authority within six months of acquiring the inheritance or receiving the gift. Where the transfer is executed in notarial form, the notary is obliged to inform the tax authorities on the parties’ behalf, and the separate filing of the SD-Z2 may not be required in those circumstances.
Foreign nationals inheriting Polish property
Citizens of EEA member states and Switzerland are not required to obtain a Ministry of Interior permit in order to acquire inherited property, though a permit remains necessary for agricultural and forestry land. There is a two-year time limit from the date of the testator’s death within which the permit must be obtained. Non-EEA nationals who fail to secure a permit within that period may be unable to retain the property. Anyone in this position should seek legal advice without delay.
How does gift tax apply to property transfers in Poland?
In Poland, gift tax and inheritance tax form part of a single unified regime. The same rules, groups, thresholds, and progressive rates apply regardless of whether property passes on death or is transferred as a lifetime gift. This contrasts with countries that maintain entirely separate gift tax and estate tax codes, and means that structuring a transaction as a gift rather than an inheritance does not fundamentally alter the tax treatment.
How gift tax is applied
The same three tax groups (I, II, and III), exemption thresholds, and progressive rate structure described in the inheritance section above apply equally to gifts of property made during a person’s lifetime. The taxable value is the market value of the property at the time the gift is made, reduced by any debts or encumbrances attached to it — such as an outstanding mortgage.
Full exemption for close family
Close family members within Group I may receive a gift of property entirely free of gift tax, provided the SD-Z2 declaration is filed with the tax office within six months of the gift being made. Where the gift is effected by means of a notarial deed — which is a legal requirement for the transfer of property ownership in Poland — the notary will automatically notify the tax authority and the separate declaration may not be necessary. It is advisable to confirm the precise procedure with your notary in advance.
Implications for non-residents
Polish gift tax is triggered by the location of the property within Poland, irrespective of whether the donor or recipient is resident in Poland. Transferring Polish real estate as a gift to a family member living abroad, or receiving a gift of Polish property from someone based overseas, will both bring the transaction within the scope of Polish gift tax. Both parties should obtain advice from a tax professional with expertise in both Polish law and the tax rules of the relevant country of residence, since double taxation treaty provisions and cross-border reporting obligations vary significantly between jurisdictions. Always verify current rates and thresholds with the Polish National Revenue Administration.
How is rental income from Polish property taxed?
Rental income arising from Polish property is subject to income tax in Poland, and every landlord receiving such income is required to declare it and pay personal income tax (PIT). This obligation applies regardless of where the property owner is tax-resident — residency abroad does not extinguish the Polish tax liability on Polish-source rental income.
The flat-rate (ryczałt) system
Private rental income is no longer eligible for taxation under the general progressive income tax system. Under the reforms introduced by the Polish Deal (Polski Ład), private landlords are now mandatorily subject to lump-sum taxation. The applicable rates are 8.5% on annual rental revenue up to PLN 100,000, and 12.5% on any amount exceeding that threshold. This flat-rate system is straightforward to operate but comes with an important trade-off.
Expense deductibility
Under the lump-sum system, no deductions for costs are permitted. Mortgage interest, letting agent fees, maintenance expenditure, and depreciation cannot be offset against rental income. This is a significant departure from rental tax rules in many other countries, where cost deduction is central to the calculation. For property held through a business structure rather than privately, different rules apply and specialist advice should be sought.
Worked example — annual rental income PLN 80,000
| Item | Amount (PLN) |
|---|---|
| Annual rental income | 80,000 |
| Flat-rate tax at 8.5% | 6,800 |
| Net income after tax | 73,200 |
Payment and filing deadlines
Rental income tax returns and payments fall due on the 20th of the month following the end of each quarter. Compliance with these quarterly deadlines is mandatory for rental property owners; failure to meet them may give rise to penalties and interest charges.
Short-term and holiday rentals
Income derived from short-term rental platforms is generally treated as rental income and taxed under the same lump-sum regime described above, provided the activity is carried out on a private rather than commercial basis. Where the letting operation includes ancillary services — such as cleaning, breakfast provision, or concierge support — it may be reclassified as a business activity, attracting different tax treatment and potentially triggering a requirement to register for VAT. Landlords who plan to operate holiday lets at any significant scale should clarify their position with a Polish tax adviser before commencing the activity.
Verify all current thresholds and rates with the Polish National Revenue Administration (KAS).
Are there tax advantages or incentives for buying property in Poland?
Poland offers a number of meaningful tax advantages for property buyers, particularly those entering the market for the first time and those prepared to hold their investment for the longer term. These benefits are not always widely understood but can generate substantial savings in the right circumstances.
PCC exemption for first apartment buyers (from 2024)
With effect from 2024, buyers purchasing their first residential property on the secondary market are no longer required to pay the 2% PCC. Eligibility is conditional on the buyer having no prior ownership of a residential property. The financial impact is tangible: on a PLN 400,000 purchase, the saving amounts to PLN 8,000. This exemption represents a deliberate policy measure to ease access to home ownership for those entering the housing market.
The five-year capital gains exemption
Sellers who have owned their property for more than five years — measured from the end of the calendar year of acquisition — are fully exempt from PIT on any gain realised on the sale. Buyers who take a long-term perspective and plan their disposal timing carefully can therefore exit their investment entirely free of capital gains tax.
The residential reinvestment relief
Even where the five-year exemption is not available, sellers can avoid PIT on the gain if the net proceeds are applied to qualifying “property purposes” within two years of the disposal. Eligible uses include acquiring another residential property, purchasing land, or repaying an existing mortgage. This mechanism effectively allows sale proceeds to be rolled into a new property purchase without triggering a tax charge, subject to the relevant conditions being satisfied — a powerful tool for those relocating or trading up.
Regional and municipal incentives
Certain regional development zones in smaller cities occasionally provide property tax reductions for substantial real estate projects, though these are primarily aimed at commercial and industrial developments rather than private residential investment. Those purchasing heritage or protected buildings should make specific enquiries with their local gmina (municipality) about any available municipal relief.
Eligibility for non-residents
Both the PCC first-apartment exemption and the five-year capital gains exemption are available to non-residents purchasing or selling Polish property, subject to the standard qualifying conditions. However, non-resident buyers and sellers face additional complexity, particularly in relation to double taxation treaty provisions and reporting requirements in their country of residence. Always confirm eligibility with a qualified local tax adviser before placing reliance on any exemption.
What are the tax implications for foreign nationals buying property in Poland?
The Polish tax system does not apply different rules to foreign buyers compared with Polish residents or citizens. Foreigners are subject to exactly the same range of taxes as domestic purchasers, including all taxes relating to real estate. This uniformity is a notable characteristic of the Polish system and represents an implicit advantage over many other countries that impose additional levies or ownership restrictions on international investors.
Ownership restrictions and permit requirements
Non-EU/EEA buyers require a Ministry of Interior permit in order to purchase land or a standalone house, but may freely acquire apartments within existing residential buildings without any special authorisation. The permit process typically takes between two and four months and requires the applicant to demonstrate a legitimate economic connection to Poland. Nationals of EEA member states and Switzerland are generally exempt from the permit requirement, except in relation to agricultural and forestry land.
Withholding tax for non-residents selling property
Foreign nationals selling Polish property may be subject to withholding tax, with the precise treatment depending on the terms of any double taxation treaty in force between Poland and their country of residence. In order to avoid double taxation, sellers may need to provide tax residency certificates and file a tax return in Poland. Poland maintains an extensive network of such treaties, and the applicable provisions will vary depending on the seller’s specific jurisdiction of residence.
Reporting obligations
Owning property in a foreign country can give rise to reporting obligations in your country of tax residence — for example, requirements to declare overseas assets, report rental income, or disclose capital gains. These obligations are entirely separate from the Polish tax rules and differ widely between jurisdictions. It is strongly advisable to engage a tax adviser who is familiar with both Polish law and the rules applicable in your home country before committing to a purchase.
Step-by-step: buying property in Poland as a foreign national
- Check permit requirements: Determine whether you need a Ministry of Interior and Administration permit based on your citizenship and the type of property (apartment, house, or land).
- Instruct a Polish notary: All real estate transactions in Poland must be completed by a notarial deed. Instruct a licensed Polish notary — if you do not speak Polish, a certified interpreter must attend.
- Sign a preliminary agreement (umowa przedwstępna): A preliminary contract sets out the terms of the sale and is typically signed before the full notarial deed. A deposit (zadatek) is usually paid at this stage.
- Conduct due diligence: Legal due diligence typically takes 2–3 weeks, during which time buyers should verify property ownership, outstanding debts, and zoning restrictions. Check the land register (Księga Wieczysta) online.
- Sign the notarial deed (akt notarialny): The notary reads the deed in full, both parties sign, and the notary collects PCC (if applicable) and notary fees at this stage.
- Update the land register: After signing the agreement, the notary files an application with the court to update the land register, confirming the change of ownership.
- Register with the tax authorities: Obtain a Polish tax identification number (NIP or PESEL) if you intend to earn rental income from the property, as you will need this for filing tax returns.
Always consult a tax adviser experienced in both Polish property law and the tax rules of your country of residence before proceeding with a purchase.
Frequently asked questions: property taxes in Poland
Do I pay capital gains tax if I sell my Polish property as a non-resident?
Gains arising from the disposal of Polish real estate are subject to Polish tax regardless of where the seller is resident, at the standard flat rate of 19%. If you have held the property for more than five years — measured from the end of the calendar year of acquisition — the gain is fully exempt. Relief may also be available under an applicable double taxation treaty. Confirm your position with a Polish tax adviser and the Polish National Revenue Administration.
Can I deduct mortgage interest on rental income in Poland?
Under the lump-sum (ryczałt) system, which is now mandatory for private landlords, no deduction for costs of any kind is permitted. This includes mortgage interest, maintenance expenditure, and agency fees. The flat-rate structure is simple to operate: 8.5% on annual rental income up to PLN 100,000 and 12.5% on any amount above that threshold, with no need to document or itemise costs. Check current rules with the Polish National Revenue Administration.
Is there a wealth tax on property in Poland?
Poland does not levy a general wealth tax on property. The annual Real Estate Tax (RET) is an area-based municipal charge — not a tax on wealth — and the amounts involved are typically very modest. A minimum tax does apply to companies owning commercial real estate with a value exceeding PLN 10 million. Private residential owners are not subject to any form of wealth or mansion-style tax.
Do I need to pay PCC if I’m buying a new-build property in Poland?
No. PCC and VAT are mutually exclusive. New-build properties acquired from a developer attract VAT — at 8% or 23% depending on the nature and size of the property — and PCC is not payable in those cases. PCC at 2% applies only to secondary market purchases from private sellers where no VAT is charged. Confirm the applicable tax treatment with your notary before exchanging contracts.
How does the first-time buyer PCC exemption work?
Since 2024, buyers acquiring their first residential apartment on the secondary market are exempt from the 2% PCC, provided they have not previously owned a residential property. The exemption does not eliminate the filing obligation — a PCC-3 declaration must still be submitted, noting that the exemption applies. Verify current eligibility criteria with the Polish National Revenue Administration.
How is inherited Polish property taxed for close family members?
Members of the immediate family within Group I — including a spouse, children, grandchildren, parents, and siblings — can inherit property entirely free of inheritance tax, on condition that the SD-Z2 declaration is submitted to the relevant tax authority within six months of the inheritance. Where the transfer is executed by notarial deed, the notary notifies the tax authorities automatically. Verify the applicable procedure and current thresholds with a Polish notary or the National Revenue Administration.
What happens if I sell my Polish property and reinvest the proceeds into another property?
Capital gains tax can be avoided where the net proceeds of the sale are directed towards qualifying “property purposes” within two years of the disposal. Eligible uses include the acquisition of another apartment, house, or land plot, or the repayment of a mortgage secured on a principal residence. The reinvestment must be properly documented. Consult a Polish tax adviser to confirm whether the conditions are met in your specific circumstances.
Are rental income tax rules the same for residents and non-residents?
Yes. Every person receiving rental income from Polish property is required to declare it and pay Polish income tax, regardless of their residence status. The same flat-rate lump-sum system applies to all private landlords: 8.5% on income up to PLN 100,000 per year and 12.5% on any excess. Non-residents may additionally be required to report Polish rental income in their country of residence, subject to the terms of any applicable double taxation treaty. Taking advice from a cross-border tax specialist is strongly recommended.
Do I need a permit to buy property in Poland as a foreign national?
Non-EU/EEA nationals require a Ministry of Interior permit to purchase land or a standalone house in Poland, but may freely acquire apartments within existing buildings without any special authorisation. The permit process typically takes two to four months and requires the applicant to demonstrate a legitimate economic interest in Poland. EEA nationals and Swiss citizens are broadly exempt from this requirement, except in the case of agricultural or forestry land. Confirm the current rules with a Polish immigration lawyer before proceeding.