Property tax rates in Poland will be higher. House and land owners as well as entrepreneurs owning buildings from January 1, 2023 have to take into account the increase in tribute. The finance minister announced new maximum rates for local taxes and fees for next year.
Inflation has changed in all cases in recent months. The indicator also affects the maximum value of local taxes and fees. At the end of last month – on July 28 – the finance minister announced new, higher maximum rates, incl. property tax . For example, the upper limit of the levy on residential buildings will increase from PLN 0.89 to PLN 1, i.e. by PLN 0.1 per square metre.
Maximum real estate tax rates from 1 sq m
|Rate in 2023||Rate in 2022||YoY change|
|from residential buildings||PLN 1.00||PLN 0.89||-0.11 PLN|
|from buildings related to running a business||PLN 28.78||PLN 25.74||-3.04 PLN|
|from buildings related to the seed marketing activity||PLN 13.47||PLN 12.04||-1.43 PLN|
|from buildings related to the provision of health services||PLN 5.87||PLN 5.25||-0.62 PLN|
|the remaining||PLN 9.71||PLN 8.68||-1.03 PLN|
|from land related to running a business||PLN 1.16||PLN 1.03||-0.13 PLN|
|from the land under surface water||PLN 5.79||PLN 5.17||-0.62 PLN|
|from other land||PLN 0.61||PLN 0.54||-0.07 PLN|
|from undeveloped land covered by the revitalization area||PLN 3.81||PLN 3.40||-0.41 PLN|
|Prepared by Bankier.pl on the basis of information contained in the announcement of the Ministry of Finance of July 28, 2022.|
How will the increase in property tax translate in practice? Residents of cities where councillors decide to raise will pay 11.8 percent more. For example, for an apartment with an area of 58 sq m. you will have to pay PLN 58, an increase of PLN 6.38. However, in the case of a house with an area of 124 sq m. the tax will be higher by nearly PLN 14 compared to 2022.
Entrepreneurs will also feel bigger increases. For example, for a building with an area of 150 sq m. used for business purposes, next year, you have to pay PLN 4,317, an increase of PLN 456 compared to the previous year.
Real estate tax in 2023
The decision on the amount of real estate tax is determined individually by each commune, therefore the increase in rates does not have to translate into higher fees in each locality. The maximum levy may not exceed the value specified in the announcement of the Ministry of Finance.
The amount of the maximum rates of specific local taxes and fees for 2023 depends on the consumer price index in the first half of 2022. According to the announcement of the President of the Central Statistical Office of July 15, 2022, prices increased by 11.8 percent. compared to the first six months of 2021. Inflation translates into annual upper limits of rates, incl. property tax. Due to the rounding of rates to full grosz, in some cases, the increase in the upper limit may not be exactly 11.8%.
Who doesn’t have to pay property tax?
The real estate tax can be paid at the commune’s cash desk, by bank transfer to the commune’s bank account or by a person appointed by the commune (collector). The Act on Local Taxes and Fees provides for a number of exemptions, including:
- farm buildings or parts thereof: for forestry or fishing, located on farm land, for agricultural activity only, used for running special departments of agricultural production,
- land and buildings entered individually in the register of monuments, provided that they are maintained and preserved in accordance with the provisions on the protection of monuments – with the exception of parts used for business activities,
- land, buildings or parts thereof occupied solely for the purposes of statutory activities among children and adolescents in the field of education, upbringing, science and technology, physical culture and sports, except for business purposes, and land permanently occupied for camps and bases leisure activities for children and adolescents,
- land located in areas under strict, active or landscape protection, as well as buildings and structures permanently connected with the land, which are located in national parks or nature reserves and serve directly and exclusively the achievement of objectives related to nature protection,
- land that is wasteland, ecological land, wooded and shrubby land – except for those used for business activities,
- located in the family allotment garden: land, allotment arbours and farm buildings with a development area of up to 35 m2 and buildings that constitute garden infrastructure, within the meaning of the Act on family allotment gardens – with the exception of those used for business activities,
- real estate or parts thereof occupied by public benefit organisations for free statutory public benefit activity ,
- universities and research institutes (the exemption does not apply to land, buildings, etc. or parts thereof used for business activities),
- public and non-public organisational units covered by the education system and the authorities running them, with regard to real estate used for educational activities,
- nurseries and children’s clubs and the entities running them, in terms of real estate used to run a nursery or children’s club,
- running sheltered employment establishments or establishments for professional activity, under the conditions specified in the Act on Local Taxes and Fees,
- entrepreneurs with the status of a research and development centre, obtained on the terms set out in the provisions on certain forms of support for innovative activities, in relation to the objects of taxation (e.g. land, buildings, etc.), which were seized for the purposes of research and development works.
Each commune can independently introduce an additional real estate tax exemption for selected groups. Detailed information on who can pay the lower levy or generally does not have to pay can be found on the websites of individual entities.