Typical Taxes and Fees
When buying or selling a house in Poland, you will incur several taxes and fees. These may include:
- Notary fees: These fees are paid to the notary who handles the transaction. They usually amount to around 1% of the property’s value.
- Property transfer tax: This tax is paid to the Polish tax authority and amounts to 2% of the property’s value.
- Real estate agent fees: If you use a real estate agent to sell or buy a property, you will need to pay their fees, which usually amount to around 3% of the property’s value.
Property Tax
In Poland, property tax is levied by local governments and is based on the property’s value. The rate varies depending on the location of the property and can range from 0.5% to 2% of the property’s value.
Capital Gains Tax (CGT)
If you sell a property in Poland, you may be subject to capital gains tax. The tax rate is 19% and is applied to the difference between the sale price and the purchase price.
Inheritance Tax
In Poland, inheritance tax is levied on the value of the inherited property. The tax rate depends on the relationship between the deceased and the heir, as well as the value of the property.
Gift Tax
If you receive a gift of property in Poland, you may be subject to gift tax. The tax rate depends on the value of the property and the relationship between the giver and the receiver.
Tax on Property Income
If you rent out your property in Poland, you will be subject to tax on the rental income. The tax rate is 19% on the net income.
Tax Advantages
If you buy a house in Poland and use it as your primary residence, you may be eligible for certain tax deductions. These include deductions for mortgage interest, property tax, and insurance premiums. Additionally, if you are a first-time homebuyer, you may be eligible for a tax credit of up to 23% of the mortgage interest paid in the first year.