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Real estate tax

1. Real Estate Tax - basic information

Real estate tax [further: RET] is classified to the wealth-tax group (tax is levied on a mere possession of particular assets, here: real estate and construction structures). RET is a local tax, which means that executive bodies of municipalities are tax authorities.

2. Subject of taxation of RET

Subject of taxation of RET are:

  • lands,
  • buildings or their parts,
  • construction structures or their parts associated with conducting a business activity.

3. Taxpayers of RET in Poland

The taxpayers of RET are: natural persons, legal persons, and organisational units including partnerships, which are:

  • owners,
  • freeholders,
  • perpetual usufructuaries or
  • dependent holders of real estate being an ownership of the State Treasury or municipalities.

4. Base of taxation in RET

Depending on a subject of taxation, the tax base of RET is:

  • area (lands),
  • usable area (buildings),
  • initial value or market value (construction structures).

The given object which is subject of taxation, can be taxed only once, i.e. object which is a building cannot be taxed as a construction structure.

5. RET rates

The rates of RET are determined by the council of each municipality and applies only within their jurisdiction. The maximum allowable rates are specified in the RET Act. Resolutions regarding RET rates in each municipality and related tax-forms should be available on a web page of each municipality.

Subject of taxation

Maximum tax rate

Lands associated with conducting business activity

0.90 PLN/m2

Other lands, including those occupied by public benefit organizations conducting benefit activity

0,47 PLN/m2

Residential buildings

0.75 PLN/m2

Buildings designated for the conduct of business

23.13 PLN/m2

Other buildings, including those occupied by public benefit organizations conducting benefit activity

7.77 PLN/m2


2% of initial value or market value
(shown in the books of accounts as the basis for depreciation)

In view of objective criterion (for example the type of business activity), the council can diversify the tax rates, but on the other hand the council cannot diversify rates of RET basing on the subjective criterion.

6. Tax obligation in RET

As a rule, tax obligation arises on the beginning of a first day of the month following the month in which circumstances justifying the creation of this obligation occurred. If that circumstance is formation of a building or a construction structure, the tax obligation arises on 1st January of the year following the year in which construction was completed or in which the use of the building or structure or parts thereof was commenced before the final completion of the construction works.

7. RET exemptions and exclusions

Tax exemptions and exclusions from RET applies, among others, to:

  • farmlands and forests not occupied for business activity (which are, however subject to agricultural tax or forest tax),
  • fallow land, ecological sites, woodland and shrubland, except for those used to conduct economic activity,
  • land occupied for lanes on public roads,
  • real estates occupied to conduct unpaid statutory public benefit activity by public benefit organizations,
  • other exemptions introduced by resolutions of municipalities,
  • historical monuments,
  • railway and port infrastructure and real estate located in airports.

8. RET assessment

Responsibilities towards tax authorities differ between natural, legal persons and organisational units.

Taxpayers who are natural person are obliged to:

  1. submit an information, within a specified period, on real estates and building structures,
  2. pay instalments proportionate to the duration of the tax obligation within following deadlines: 15th March, 15th May, 15th September and 15th November of the tax year.

Taxpayers being a legal entity or organisational unit, including partnership are obligated to:

  1. submit a declarations on RET for each the tax year,
  2. correct tax declaration in case of changes in the tax obligation (if circumstances justifying obligation to perform adjustment occur),
  3. pay amount of RET, in instalments proportionate to the duration of the tax obligation within the 15th day of each month (and for January - before 31st January).

If the object of taxation is co-owned by natural and legal persons, unincorporated organizational units, or unincorporated partnerships, those natural persons are obliged to submit a tax return and pay RET on the terms applicable to legal persons.


Last update: July 2018

Prepared for the Polish Information and Foreign Investment Agency by:

MDDP - Tax Advice Company

Polish Investment and Trade Agency

Krucza St. 50

00-025 Warsaw

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