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Property taxes in Poland when buying, selling and in other cases: what an investor needs to know

Home » blog » Property taxes in Poland when buying, selling and in other cases: what an investor needs to know

Property taxes in Poland have undergone significant changes over the last two decades. Previously, the regulatory system was less transparent, but gradual reforms in legislation have allowed for a high level of investor protection. With the adoption of the Urban Leases Act (LAU) and other regulations, the tax system has become more predictable. Historically, the steady growth of the Polish property market has been accompanied by adjustments in commission rates. Tax amounts are formed on the basis of regional indicators, which makes it possible to take into account the specifics of each municipality and the regional economy.

Property tax rates and charges in Poland

Commission amounts in the country are calculated according to strict rules established by the Ministry of Finance. They are also specified by local authorities. Thus, for different types of objects there are the following maximum rates according to 2024 data:

  1. Business-related land – PLN 1.34 per square metre.
  2. Land under standing or running water – PLN 6.66 per square metre.
  3. Other land, including facilities of public benefit organisations – 0.71 PLN per sq. m.
  4. Residential property – PLN 1.15 per square metre.
  5. Business-related buildings – 33.10 PLN per square metre.

In 2025, the rates are forecast to increase by 2.7% compared to 2024, reflecting inflationary processes in the country. For example, the rate for residential properties will increase to PLN 1.18 per square metre and for commercial properties to PLN 34.00 per square metre. Property taxes in Poland play a key role in value formation and should be taken into account when planning investments.

Taxes when buying property in Poland: VAT and PCC

Two main levies apply to the purchase of a property in the country: VAT and civil transaction tax (PCC). The former is charged on the purchase of new buildings from a property developer. The standard VAT rate is 23%, but a reduced rate of 8% applies for residential properties up to 150m². Secondary purchases are subject to PCC, which is 2% of the market value of the dwelling. The percentages depend on the type of transaction and the property, which requires careful analysis of each case. The investor is advised to carefully study the taxation conditions to avoid unexpected costs and optimise the investment.

Notary services and additional costs

Property taxes in Poland are accompanied by mandatory costs associated with the registration of the transaction. Notary services play an important role, as the specialist certifies the sale and purchase agreement and submits data to the land registry. The maximum rate of remuneration of a notary in 2024 reached PLN 10,000.

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Additional costs include real estate agency commissions (up to 3% of the value) and, in some cases, fees when applying for a mortgage loan. It should be borne in mind that property taxes in Poland, together with notary and agency fees, can be a significant expense, which should be factored into the financial plan.

Taxes on income on the sale of real estate

When selling a property in Poland, the profit is subject to income tax (PIT) at the rate of 19% on the difference. But if the property is sold after 5 years from the date of purchase, no interest is charged. An additional condition is that the investor must use the proceeds for their own housing purposes within 3 years after the transaction. This system of property taxes in Poland stimulates long-term investments and reduces the commission burden for those who plan to live in the acquired area or use it for permanent rent.

Inheritance and gift taxes

Property taxes in Poland also apply to inheritance and donation of properties. Depending on the degree of kinship between the parties, the system divides the beneficiaries into three groups:

  1. For close relatives (group one), there is a fee waiver for filing SD-Z2 declaration within 6 months.
  2. The other groups have progressive rates: for the first – from 3% to 7%, for the second – from 7% to 12%, for the third – from 12% to 20% of the value of property exceeding certain limits.

Taxes on rental property

Income from rental property in Poland is taxed under a special system. Individuals are subject to a lump sum tax (ryczałt) of 8.5% on income over PLN 100,000 and 12.5% for smaller amounts. At the same time, self-employed persons can choose between the rate of 17% or a linear tax of 19% depending on their profits. Renting commissions are calculated on total income without taking into account expenses, which requires precise planning and optimisation of payments. Timely filing of the PIT-28 return allows you to avoid penalties and ensure a refund of overpaid amounts if the tax burden was overstated.

Recommendations for investors

Property taxes in Poland play an important role when buying properties and require careful consideration. Recommended:

  1. Thoroughly research current legislation, including the Law on Urban Leases (LAU) and current tax rates.
  2. Use the services of experienced real estate agents specialising in the Polish market to obtain accurate information on additional costs.
  3. Plan transactions taking into account all tax obligations – from VAT to PCC, as well as the costs of notary services and agent commissions.
  4. When selling, take into account the possibility of exemption from income tax when owning the property for more than 5 years and use the proceeds for housing purposes.
  5. Evaluate tax reliefs and special conditions for inheriting or gifting real estate to optimise financial losses.

These recommendations will help to minimise tax costs and ensure the sustainability of investments in the property market in Poland.

Conclusion

An analysis of Poland’s tax system shows that property commissions are considered an important element in the process of buying and owning property here. Transparency of legislation, specific interest rates and clear regulations set by the Ministry of Finance create conditions for safe transactions.

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Combining data on tax rates, legal regulations and additional costs allows you to form an objective idea of what property taxes in Poland an investor needs to consider. Recommendations on property selection, strategies to optimise fees and use of incentives will help you make an informed decision and create a sustainable investment portfolio.

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How to buy a flat in Poland for a foreigner: a complete guide with working tips

Poland has long ago ceased to be only a country for tourism and business. Today, more and more foreigners decide to buy a flat in Poland to start a new life or to invest profitably in the local property market. The country offers not only affordable prices and high quality of life, but also an abundance of cultural attractions and cosy places to live.

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Peculiarities of buying property in Poland for Russians

The Polish property market is attracting more and more foreigners, but there are important nuances to consider. Firstly, a purchase permit is required in some cases, especially when it comes to buying a plot of land or a house outside cities. For example, to buy a country house with a plot of land, you need to apply to the Ministry of Interior and Administration, which can take about 3-4 months.

The average cost of flats in Poland varies from 2,000 to 4,000 euros per square metre, depending on the city. Each offers its own advantages:

  1. Warsaw: a metropolitan city with a developed infrastructure, cultural centres and numerous business districts. Important business centres such as the Warsaw Financial Centre are located here.
  2. Krakow: the cultural heart of the country, famous for its castles and universities. Life here is close to attractions such as Wawel Castle and Market Square, as well as many museums and theatres.
  3. Poznan: popular with families due to its quality infrastructure and lower housing prices. It is home to excellent schools and parks such as Citadel Park.

Step-by-step guide: how to buy a flat in Poland

Buying can seem like a complicated procedure, especially if you are dealing with foreign bureaucracy for the first time. However, by following certain steps and having the right information at hand, you will be able to go through all the steps with ease and confidence. In this section, we will discuss in detail how to choose the right property, what documents to collect, and what to look out for when working with real estate agencies.

1. determining the budget and choosing the type of accommodation

The first step in buying a flat in Poland is to determine your budget. Prices vary depending on the city and type of housing. For example, you can buy a studio in Poland in Warsaw for 120,000 to 150,000 euros, while in smaller cities such as Lodz or Bydgoszcz, prices start from 70,000 euros.

In addition to the cost of the flat, you need to consider the cost of taxes and commissions:

  1. Civil Action Tax (PCC) – 2% of the value of the flat.
  2. Real estate agency commission – 2-3%.
  3. Notary costs are about 2 per cent.

2. Obtaining authorisation to purchase

Foreigners need a permit to buy property in Poland. This document is issued by the Ministry of Interior and Administration. To obtain it you will need:

  1. Passport.
  2. Proof of financial means (income certificate).
  3. Documents on your stay in Poland (if you are already in the country).
  4. A statement justifying the reason for the purchase of the property.

The process can take anywhere from 1 to 3 months, so it is important to start early.

3. Finding a flat and working with an agency

Once you have received authorisation, start looking for a flat. At this stage, it is best to use the services of a real estate agency, which will help with the legal verification of the object and the conclusion of the transaction. The agency’s commission is usually 2-3% of the transaction value. This will give you confidence that all the documents are in order and the purchase will go smoothly. It is important to check for a current extract from the land register (Księga Wieczysta) to make sure there are no debts or restrictions on the property.

4. Preliminary agreement

When an object is found, a preliminary contract is concluded – Umowa przedwstępna, where the key terms of the transaction are fixed. The deposit is 10-20% of the value of the object. This contract protects the buyer from possible risks on the part of the seller. The agreement should spell out all the terms and conditions of the purchase, including the value of the object, the terms of transfer and the responsibility of the parties.

5. Finalisation of the transaction

The contract is formalised by a notary. A lawyer records the transaction and after that the property is registered in the land register (Księga Wieczysta). The services of a notary cost about 2% of the value of the property, and a civil action tax (PCC) of 2% is also charged.

New or second-hand housing in Poland: where to buy a flat?

New buildings offer modern living conditions. The cost of such properties in Warsaw and Krakow starts from 3,000 euros per square metre. They are often located in gated residential complexes, which adds a level of security and comfort. Buyers of new buildings can count on quality guarantees from the developer, as well as lower maintenance costs, as modern buildings are built with energy efficiency in mind.

Secondary housing is most often located in central city districts and can offer a unique atmosphere associated with the history of the building. But it is worth considering that such properties may require remodelling. The cost of renovation ranges from 500 to 800 euros per square metre depending on the scope of work. Buying secondary housing can be more cost-effective, but requires additional effort to renovate and adapt to modern standards.

Mortgage for foreigners: how to get financing in Poland

Foreign buyers can easily apply for a mortgage to buy a flat in Poland. A down payment of 20-30% of the value of the flat is required. Interest rates are 3-4% per annum, which makes the conditions quite attractive compared to other EU countries. PKO Bank Polski and Santander Bank Polska actively co-operate with foreigners, offering different mortgage products.

The stages of obtaining a mortgage:

  1. Pre–approval. To start the process, get pre-approved for a mortgage to see what kind of budget you can expect.
  2. Filing Documents. Bank statements, proof of income, and NIP (Taxpayer Identification Number) are required. Often banks also require life or property insurance.
  3. Signing of the mortgage agreement. The bank and the borrower sign the contract, after which the bank transfers funds to the seller. It is also necessary to register the mortgage at the land registry.

Conclusion

The country offers a wide range of opportunities for those who want to live in the heart of Europe, invest in a stable economy and enjoy a high standard of living. Buying a flat in Poland is a good investment, especially as prices continue to rise and rental demand also remains stable. The ease of obtaining a mortgage, quality infrastructure and security make the country an ideal place for both investment and permanent residence.

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Invest in your future today and enjoy all the benefits of living in Europe, from high levels of education to a quality medical system and a stable economic climate.

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Ways of immigrating to Poland in 2025: from residence permit to stay card

The growing interest in Eastern Europe has led to increasingly diverse and legally transparent ways of immigrating to Poland. Among the main factors contributing to the country’s attractiveness are accessible education, an active labor market, flexible mechanisms for obtaining residence permits and permanent residency. For those considering life in Europe, the state provides clear and consistent tools for legalization.

How to Move to Poland: Legislative Framework and Legalization Paths

The immigration policy is based on European standards that combine openness with strict procedural frameworks. The main entry directions are considered to be work, business, education, having Polish roots, or humanitarian circumstances. All documents are processed either through consulates or at the place of residence in the country.

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Immigrating to Poland through Employment

One of the most common channels is through employment. A foreign citizen can enter the country by invitation from an employer or through an agency accredited at the national level. The country actively attracts IT specialists, builders, drivers, engineers, and service industry workers.

Having an official contract allows for obtaining a residence permit, and after a few years, applying for permanent residency in Poland. The advantage is that labor immigration is accompanied by accelerated procedures for obtaining a residence permit.

Business and Freelancing as a Path to Legalization

Setting up a sole proprietorship or small business is another effective mechanism. The state incentivizes entrepreneurs by offering simplified taxation and access to investment programs. Freelancers in design, marketing, IT, and consulting have the opportunity to demonstrate financial stability and apply for a residence permit.

Education and Academic Programs

Separate channels are provided for students. Enrolling in a university, technical school, or even language courses automatically grants the right to temporary residence. After completing studies, there is time to search for employment, with the possibility of changing status to a residence permit. This path is considered one of the legal and sustainable ways of immigrating to Poland, especially for young people planning long-term adaptation in the country.

Here are the directions through which academic immigration is most commonly formalized:

  • enrollment in a state university;
  • admission to a bachelor’s or master’s program in English;
  • participation in international exchange programs;
  • completion of preparatory Polish language courses;
  • education in private academies with subsequent employment.

The academic path is particularly attractive for young people planning to build a career and obtain a residence permit in Poland.

Polish Card and Polish Roots

Bearers of Polish culture and their descendants can take advantage of the Polish Card program. It allows legal residence in the country, work without permits, and eligibility for permanent residency through a simplified scheme. With archival certificates or direct relatives of Polish origin, the document can be obtained through the consulate.

Immigration through Family

Family reunification is a separate direction actively used in 2025. Family members already residing in the country based on a residence permit or permanent residency can invite spouses, children, and parents. Proof of housing, income, and insurance is required. This mechanism is part of the official immigration methods to Poland and allows for a legal move based on family ties.

Simplified Mechanisms — List of Advantages

When considering the country, it is important to understand what factors make adaptation and legalization processes convenient for immigrants:

  • clear legal framework and regulated timelines;
  • simple requirements for residence permit applicants;
  • ability to obtain a residence permit while working remotely;
  • favorable conditions for business and freelancing;
  • active support for expatriates and adaptation courses;
  • wide presence of Polish and international agencies.

These conditions create a favorable environment for relocation and long-term residency.

Immigration Paths to Poland: 2025 Legal Map

Immigration strategy can be built on one of several schemes. Below are the main ones:

  • submitting documents for employment from a Polish employer;
  • registering a sole proprietorship and starting a business;
  • obtaining the Polish Card with confirmed roots;
  • enrolling in school, technical school, or university;
  • participating in state grants for freelancers;
  • obtaining refugee status with grounds;
  • applying for a residence permit through family;
  • employment through international agencies.

Each of these directions involves a separate algorithm that should be studied before starting the process.

Language Adaptation: Polish and English

Knowledge of the Polish language remains a key factor for successful integration. However, English is widely used in major cities and in the IT sector, simplifying the initial stages of stay. There are free courses for immigrants, as well as online platforms to quickly learn basic levels.

Role of Expat Communities and Mediators

Most major cities have developed expat communities that assist with documents, housing search, and adaptation. Legal consultants and licensed mediators provide training on legislation, citizenship application, and status change. Such resources significantly simplify immigration methods to Poland, especially for those encountering the country’s bureaucratic system for the first time.

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Specifics of Obtaining Permanent Residency and Citizenship

After several years of residence and holding a residence permit, one can apply for permanent residency, and later, citizenship. Proof of integration, language proficiency, and absence of legal violations are required. In 2025, the procedure remains stable and predictable.

Immigration Paths to Poland: Key Points

Compared to other Eastern European countries, the immigration paths to Poland in 2025 stand out for their flexibility and transparency. The availability of multiple channels — from the Polish Card to business, from work to education — allows for choosing an individual route of legalization. The country offers quality living conditions, clear legislation, and tools to transition from temporary status to permanent residency and citizenship.

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