Real estate transaction costs and taxes in 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.
Portrait ofAndrzej Pośniak
Andrzej Pośniak
Managing Partner
Warsaw