Real Estate Tax

What is Polish real estate tax and who is liable

Real estate tax is a local tax levied on land, buildings, and structures that applies to both individuals and legal entities. The following entities are liable for real estate tax:

• owners of real estate or structures,
• holders of independent possession of real estate or structures,
• perpetual usufruct holders of land,
• holders of real estate (or parts thereof) owned by the State Treasury or a local government authorities.

Real estate tax is paid directly to the municipality in whose jurisdiction the property is located.

Real estate tax services offered by RSM in Poland

RSM provides all-encompassing real estate tax advisory. We comprehensively support legal entities and organisational units (including companies without legal personality) in the scope of tax settlements regarding both existing property portfolios and newly completed investments.

Importantly, when working with both local and foreign clients, we offer a full range of end-to-end solutions ensuring full tax compliance and streamlining real estate tax processes, in line with the Polish Local Taxes and Charges Act.

Our services include:

• carrying out comprehensive analyses of the tax liability arising from real estate tax,
• determining the appropriate real estate tax classification of buildings and structures,
• supporting the process of assigning a Fixed Asset Classification number to fixed assets,
• calculating real estate tax rate and determining the commencement and duration of the tax obligation,
• preparing and reviewing DN-1 real estate tax returns, including all required appendices, as well as submitting amendments where necessary,
• preparing and filing applications for individual tax rulings with the competent tax authorities on behalf of taxpayers,
• providing comprehensive real estate tax support for greenfield investment projects, including newly constructed buildings and structures developed directly by businesses.

Stages of a comprehensive real estate tax review 

Step 1: Getting an insight into the taxpayer’s circumstances

A comprehensive real estate tax review begins with a thorough understanding of the taxpayer’s individual circumstances. Our RSM advisors first identify the client’s specific needs and gather key information about the relevant real estate or planned investment, including the location of the assets subject to taxation.

Our experience shows that gaining an in-depth understanding of the nature of the business conducted – or planned to be conducted – at a given property enables us to provide a more accurate and tailored tax assessment. For this reason, we first establish the key facts and the client’s expectations before requesting the data and documentation required to carry out a reliable and comprehensive review.

Step 2: Assessing the tax liability resulting from owned real estate and fixed assets

Once all the necessary information and documentation have been collected, we move on to the core stage of the process: a detailed assessment of the client’s real estate tax liability. Where necessary, we also take into account additional factors and challenges arising from the nature of the client’s business operations. We draw on a wide range of information sources – from construction plans to satellite imagery. This enables us to assess the taxpayer’s position accurately and examine the relevant assets from multiple perspectives.

Step 3: Final tax calculation and reporting

As the final stage of our work, we prepare a comprehensive real estate tax calculation file.
The report prepared by our tax advisors covers all real estate and other assets that may potentially be subject to real estate tax. Designed as a practical and transparent tool, it enables RSM clients to quickly determine:

• which assets are subject to real estate tax,
• why particular plots of land, buildings or parts thereof are taxable,
• which assets qualify for a tax exemption and the legal basis for that exemption.

Why professional support matters when reviewing real estate tax liabilities and available exemptions 

Although real estate tax may appear to be a relatively straightforward and low-profile compliance obligation, its local nature and the diverging approaches adopted by individual municipalities are to blame for the fact that real estate tax settlements are surprisingly prone to errors, thus urging businesses to seek support during tax proceedings and audits. However, taxpayers should not overlook opportunities to take advantage of available exemptions and reliefs, including those available under the Polish Investment Zone regime.

Expert assistance therefore helps businesses both mitigate risk and reduce their overall tax burden. At RSM, we have demonstrated the value of this approach on numerous occasions while supporting businesses across a wide range of industries. 

Our real estate tax advisory services are particularly popular with:

• large manufacturing enterprises,
• companies operating warehouses and logistics centres,
• companies owning office buildings or shopping centres,
• renewable energy companies, including operators of photovoltaic farms,
• amusement and leisure parks,
• companies operating in the defence industry.

If you have any doubts regarding real estate tax, please contact us – we will be happy to answer any questions, discuss your circumstances and explain how we can support your business.

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