What taxes do I need to pay when buying real estate in Poland?

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Consultant # 45 Lawyer Poland / Poland

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What taxes do I need to pay when buying real estate in Poland?

Buying real estate in Poland is an important step that requires careful planning and understanding of all financial aspects, including tax obligations. Regardless of whether you are a Polish citizen or a foreigner, it is important to know what taxes you will have to pay when purchasing real estate. In this article, we will review the main taxes and fees associated with buying real estate in Poland and provide useful tips on how to optimize your expenses.

Real estate purchase and sale tax (PCC)

The civil law transaction tax (PCC) is one of the main taxes paid when buying real estate in Poland. This tax applies to most transactions of purchase and sale of real estate on the secondary market.

Key aspects of PCC:

1. The tax rate is 2% of the real estate value
2. The tax is paid by the buyer
3. Payment must be made within 14 days from the date of the contract
4. There are certain exceptions and exemptions

For the correct calculation and timely payment of PCC, it is recommended to use the service of lawyer's consultation. A professional lawyer will help you understand all the nuances of this tax and avoid possible mistakes.

Value added tax (VAT)

When buying new real estate from a builder or developer, value added tax (VAT) may be applied instead of PCC. This is an important aspect to consider when planning your real estate budget.

VAT peculiarities when buying real estate:

• The VAT rate can be 8% or 23% depending on the type of property
• VAT is usually included in the price of real estate
• There are certain conditions for applying the reduced VAT rate
• Exemptions are possible for some types of real estate

To accurately calculate VAT and determine whether a reduced rate can be applied, you should use the service of legal analysis of a situation. This will help you optimize your expenses and avoid unforeseen tax liabilities.

Real estate tax

Although the real estate tax is not paid directly upon purchase, it is important to take this tax into account when planning long-term expenses for the maintenance of real estate in Poland.

The main aspects of the real estate tax are:

1. It is paid annually
2. The rate depends on the type and size of the property
3. May vary from municipality to municipality
4. Paid by the property owner

To understand your future real estate tax obligations, it is recommended to use a legal analysis service. This will help you plan your long-term expenses and avoid surprises in the future.

Stamp duty

When purchasing real estate in Poland, you may also be required to pay stamp duty. This is a small but important aspect that should be taken into account in the overall budget.

Cases of stamp duty payment:

• When issuing a power of attorney
• When obtaining extracts from registers
• When submitting certain applications to state authorities
• When executing certain documents at a notary

For the correct calculation and timely payment of stamp duty, it may be useful to have your documents reviewed by a lawyer. A professional lawyer will help you determine which documents are subject to stamp duty and how much you should pay.

Notary fees

Notary fees are an important component of the costs of buying real estate in Poland. Although it is not a tax in the literal sense, these costs are mandatory and can amount to a significant amount.

Peculiarities of notary fees:

1. The amount depends on the value of the property
2. Includes payment for the preparation and certification of the sale and purchase agreement
3. May include additional services such as checking the status of the property
4. Usually paid by the buyer

To optimize the cost of notarial services and avoid unnecessary expenses, it is recommended to use the service of a legal opinion of a lawyer. A professional lawyer will help you understand what notarial services you need and how you can minimize these costs.

Capital gains tax

Although this tax is not directly related to the purchase of real estate, it is important to be aware of it if you plan to sell the purchased property in the future.

Key aspects of capital gains tax:

Applies to the sale of real estate within 5 years after its purchase

The tax rate is 19% of the profit

There are certain exemptions and opportunities to reduce the tax base

Does not apply if the property was used as a primary residence

To understand future tax liabilities and opportunities to optimize them, it is worth using the service of a legal opinion. It will help you plan your long-term real estate investments and avoid unforeseen tax expenses in the future.

Additional fees and expenses

In addition to the basic taxes, there may be additional fees and expenses when buying real estate in Poland, which are important to consider when planning your budget.

Additional costs may include:

• Real estate agent fees
• Real estate valuation costs
• Fees for making changes to the land register
• Real estate insurance costs

For a detailed analysis of all possible expenses and development of a strategy for their optimization, we recommend using the service of legal analysis of the documents. A professional lawyer will help you understand which costs are mandatory and which can be waived or more cost-effective alternatives can be found.

What happens if you don't solve the problem? Ignoring or misunderstanding tax obligations when buying real estate in Poland can lead to serious consequences. This may include significant fines for late payment of taxes, additional costs for correcting mistakes, problems with the registration of ownership, and in some cases even criminal liability for tax evasion. In addition, failure to take into account all taxes and duties can lead to improper budget planning and financial difficulties in the future.