Property tax rates in Poland in 2024

From January 2024, property tax rates will increase again in Poland. Owners of houses, apartments, land plots and entrepreneurs who own buildings will begin to pay increased taxes from January 1, 2024. The Polish Ministry of Finance has established new maximum rates of local taxes and fees for 2024. This includes property taxes.

From January 2024, property tax rates will increase again in Poland. Owners of houses, apartments, land plots and entrepreneurs who own buildings will begin to pay increased taxes from January 1, 2024. The Polish Ministry of Finance has established new maximum rates of local taxes and fees for 2024. This includes property taxes.

Therefore, 2024 will also bring further increases in local taxes and fees. The same will happen with property taxes, which could increase to 15% everywhere. There have not been such increases in the country for 25 years. This tax depends on the inflation rate in the first half of the current year. The General Statistical Office reported that inflation in Poland was 15%.

According to Polish law, the decision on the amount of property tax is determined individually by each commune, so the increase in rates, in theory, should not occur in each locality. However, in fact, tax increases occur almost everywhere. Rare exceptions only confirm the rule - local authorities squeeze everything out of taxes. We can expect that most of them will decide to update their tariffs upward. In 2023, 92% of communes made this decision.

Certainly in 2024, the maximum property tax rates will apply in cities such as Lodz, Bielsko-Biala, Szczecin, Katowice, Lublin, Gdansk, Gdynia, Sopot, Krakow, Poznan and others.

The increase in these fees is aimed at ensuring the growth of budget revenues at a level that allows the city to fulfill its goals, as Polish officials explain this action.

In Warsaw, property taxes are slightly lower. For residential premises (houses and apartments) it is 1.0 PLN/m2, for business premises 28.78 PLN/m2, for land under a business – 0.61 PLN/m2. Property tax rates in Warsaw and voivodeship centers in 2024 are shown in Table 1.

Table 1. Property tax rates in voivodeship centers in 2024.

Data used from Bankier.pl website

About property tax rates in Poland in 2022 - 2024

Over the last three years - 2022, 2023, 2024, the tax increased by 28.6%, including:

- from apartments and houses - by 0.26 zł/m2 (from 0.8 to 1.15 zł/m2);

- from buildings related to business - by 7.36 zł/m2 (from 25.74 to 33,10 zł/m2);

- from other buildings (garages, outbuildings) – by 2.49 zł/m2 (from 8.68 to 11.17 zł/m2);

- from land under residential buildings – by 0.16 zł/m2 (from 0.54 to 0.70 zł/m2);

- from land associated with running a business – by 0.31 zł/m2 (from 1.03 to 1.34 zł/m2).

We have made for you a table with maximum tax rates for specific types of real estate in Poland for 2022 - 2024. We also calculated the change in these rates over this period of time (Table 2).

Table 2 . Maximum property tax rate in Poland in 2022 – 2024 (zl).

On the maximum tax rates for apartments and residential buildings for the period 2004 - 2024

Look how the maximum rates (read - just rates) of taxes on apartments and residential buildings have increased over a longer period of time. Over 21 years, from 2004 to 2024, they increased 2.2 times (from 0.52 to 1.15 zlotys/sq. meter).

Table 3. Maximum tax rates for apartments and residential buildings for the period 2004 - 2024.

Let's give examples

From January 2024, for residential buildings or parts thereof (apartments), the maximum tax rate threshold will be a maximum of 1.15 zlotys/m2 - 15 groszy per square meter more than in 2023. For example, the owner of a 60-meter apartment will pay 69 zlotys in 2024 instead of 60 zlotys, as now, and 15 zlotys more than in 2022.

For the owner of an apartment with an area of 100 square meters in 2024, the tax will increase by 15 zlotys.

For an apartment of 70 square meters with a land share of 20 square meters, the tax in 2023 is 80 zlotys. Calculations for 2024 show that this tax will increase to 95 zlotys, which means an increase of 15 zlotys.

In addition, you will have to pay property taxes for the garage (if it is detached). In 2024, the maximum rate will be 11.17 PLN per m2 (in 2023 9.71 PLN/m2). On the contrary, if a parking space in the garage belongs to an apartment, it is subject to the same tax, that is, 1.15 zł/m2.

Looking at the new rates, we can conclude that the owner of a property on which a 150-meter single-family house is built will pay PLN 142 more in taxes in 2024.

For a 200-meter house located on a plot of one thousand square meters, the maximum tax has increased over the past five years from 634 to 810 zlotys. In 2024 it will be 940 zlotys, which is 130 zlotys more than in 2023. This is indeed a large amount.

For residential land, local authorities will require 71 groschen per meter in 2024, which is 12 groschen more than under current taxation.

As for land used for economic purposes, for each square meter in 2024 it will be necessary to pay 1.34 zlotys, which is 18 groschen more than under the current taxation.

In 2024, changes in the amount of property taxes will be felt primarily by entrepreneurs, especially those whose part of the house is used for business activities. This portion will be subject to a much higher tax. Currently, the maximum rate for entrepreneurs is 28.78 zlotys per square meter, and next year it will be 33.10 zlotys.

For example, if a person runs a business on 50 square meters, he will receive an increase of 216 zlotys per year.

For a commercial building with an area of 700 square meters and a land with an area of 5000 square meters, the projected annual tax increase in 2024 to PLN 29,870 (which means PLN 2,489.2 per month).

For those entrepreneurs who have buildings related to the provision of medical services in accordance with the provisions on medical activities, occupied by entities that have these benefits, it is necessary to pay a tax in the amount of PLN 6.76/m2.

This can significantly affect the cost of living in the country. As a result, the prices of products and services offered by entrepreneurs will rise to make the companies profitable.

Increasing local taxes is another factor that will increase the costs borne by Poles. Households and entrepreneurs are already experiencing higher operating costs, for example for heating or electricity.

At the same time, preferential taxation will remain for institutions playing a vital social or cultural role, providing them with stability in the tax context.

The question remains whether raising property tax rates will have a direct impact on house prices in Poland. It should be said that there is no such dependence. Firstly, all property owners pay the tax. Secondly, regardless of the location and cost of the apartment or house, most often the tax rate is the same, that is, the maximum. Thirdly, the amount of property tax is low compared to the prices of apartments and houses. Consequently, tax rates do not have much impact on residential prices.

Read more about property tax in Poland here: https://okeask.com/en/category/poleznaya-informaciya/1702626797-property-tax-in-poland