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Poland

Real estate transaction costs and taxes in Poland

Table of contents
  1.  Due diligence costs for the purchase of real estate
    1. Municipal search
    2. Utility search (each service)
    3. Land registry search (per search)
    4.  Company search, per company
    5.  Survey/Valuation fee, approx
    6.  Phase 1 Environmental survey
  2. Costs associated with a contract for purchase of real estate and registering title
    1.  VAT on price
    2.  Transfer duty
  3. Tax or duty on the acquisition of shares in a company owning real estate
  4.  Capital gain taxation on future disposal of real estate or shares in a company owning real estate
    1.  Tax on capital gains on the disposal of the real estate itself
    2.  Tax on capital gains on the disposal of shares in a company owning real estate
Poland

1. Due diligence costs for the purchase of real estate

Cost
  • Land registry: text excerpt: approx. EUR 12; text excerpt with map: approx. EUR 36;
  • Zoning plan: the majority of zoning plans are available online free of charge; certified text excerpt: approx. EUR 7 – EUR 12;
  • Map: approx. EUR 5-EUR 50.
VAT

Nil

1.2 Utility search (each service)

Cost
  • Map of utilities (not regularly updated): approx. EUR 6–EUR 36;
  • Map’s update: negotiable with a surveyor
VAT

Nil

Cost

Information websites (not binding), regularly updated only for certain locations, available free of charge.

VAT

Nil

1.4 Company search, per company

Cost
  • Electronic register available free of charge.
  • Official hard copy with all company’s data changes approx. EUR 15.
VAT

Nil

1.5 Survey/Valuation fee, approx

Cost

Depends on location of the land, the land-use and other factors.

VAT

23% however may be exempt in certain situations.

1.6 Phase 1 Environmental survey

Cost

Depends on location of the land, the land-use, impact on the environment and other factors.

VAT

23%

2. Costs associated with a contract for purchase of real estate and registering title

2.1 VAT on price

Cost

On full price:

  • building may be exempt in certain situations however even if some exemptions apply, the parties may still decide to apply VAT to the transaction;
  • undeveloped land not designated for construction purposes – exempt;
  • if real estate is transferred as a part of an enterprise – exempt.
VAT
  • Lands and buildings: 23%;
  • Residential houses and apartments (provided certain conditions are met): 8%.

2.2 Transfer duty

Cost

2% of land and buildings value if exempted from VAT or VAT is not applicable.

3. Tax or duty on the acquisition of shares in a company owning real estate

1%

4. Capital gain taxation on future disposal of real estate or shares in a company owning real estate

4.1 Tax on capital gains on the disposal of the real estate itself

  • Polish resident company 19% CIT, non-resident company in most cases subject to 19% CIT;
  • Polish individual and non-Polish individual subject to 18 % PIT up to approx. EUR 20,580 or 32% of the amount exceeding EUR 20,580 + approx. EUR 3,700.

4.2 Tax on capital gains on the disposal of shares in a company owning real estate

  • Polish resident company 19% CIT, non-resident company subject to 19% CIT if at least 50% of company assets, directly or indirectly, constitute real estate located in Poland or rights to such real estate;
  • Polish individual as well as non-Polish individual if at least 50% of company assets, directly or indirectly, constitute real estate located in Poland or rights to such real estate, subject to 18% PIT up to approx. EUR 20,580 or 32% of the amount exceeding EUR 20,580 + approx. EUR 3,700.

Authors

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Portrait ofAndrzej Pośniak
Andrzej Pośniak
Managing Partner
Warsaw