The tax year in Poland is the calendar year ending on December 31st.
Poland has a Double-Taxation Treaty with many countries, including the UK. This means that a property investor or homebuyer should not be subjected to duplicate taxes, or paying tax twice. Taxes due in Poland are offset against domestic taxes, where such an agreement is in place.
Poland property transaction taxes - for the purchase
Value Added Tax for property investors
In most cases, Value Added Tax is payable at a rate of 23%.
There are reduced rates of VAT for certain products and services. 8% VAT is levied on new-build properties, 2% tax for re-sale, secondary market properties
Is applicable for some activities such as issuing certificates or for Power of Attorney services. It is levied at 0.5%
Capital Gains tax on Polish properties
In general, there is no special tax rate for capital gains in Poland. Capital gains are usually added to the regular income of an individual/company and based on the normal tax rates.
Despite this, if property in Poland (or real estate) is sold more than 5 years after it was purchased the capital gain is exempt from tax.
Poland Property - Inheritance tax
Inheritance and gift tax are governed by the law dated 28 July 1983, modified by later amendments. Tax becomes payable upon the transfer of gift, or inheritance of wealth, situated in Poland. The rate is similar to the lower rate of income tax, where relevant.
If the transfer takes place in Poland, but neither the transferor nor the transferee is a Polish citizen or resident of Poland, then the transfer is not taxable.
Poland Property taxes ongoing for the property investor
Income tax for investors in Polish properties
Poland's taxation of an individual's income is progressive. That means, the higher the income, the higher the rate of tax applicable. The tax rate for an individual is between 18% - 32%.
Individuals have the choice of paying a progressive taxation, which is applied to income minus expenses or a lump sum method, which is levied at a lower tax rate, but applied to the income. This is relevant for rental income and those letting out property.
The tax for an individual who meets the criteria of a "permanent resident" in Poland will be calculated on his or her income in Poland and abroad. A foreign resident, who receives income in Poland, pays tax only on his income earned in Poland.
To be considered a Polish resident, the permanent place of residence in Poland is the main criterion (resident for more than 183 days).
Property in Poland - Local taxes
Local property taxes: 1.5% of nominal property value – might change to a % of property market value shortly.
Please note: this page is provided as guidance only to home buyers in layman's terms
For more of a profile of Poland, take a look at a snapshot profile of Poland
To give you more background as to why you might consider investing in Poland, go to the Poland property-Why Invest section, or maybe look at the individual towns and cities profiled in each country's Poland Towns and cities like Krakow, Warsaw section. Or simply take a look at the Polish Properties
To see what property is available in Poland, click here on Poland Property. If you cannot find what you like, please contact us on +44 (0)1932 849536, as we have lots more properties than are shown on the website.
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The focus is mainly greater Europe: Poland property, UK investments, Spain property, Turkey property, Cyprus property
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