Poland’s Left Finalizes Cadastral Tax Bill Based on Property Value
The Left party (Lewica) in Poland is nearing completion on a proposed cadastral tax bill that would fundamentally change how property is taxed, moving away from the current system based on square footage to one determined by actual market value. Left leader Anna Maria Żukowska, speaking on Radio ZET, confirmed the proposal is in its final stages and will soon be submitted to the Sejm.
She emphasized that while drafting and amendments are still underway, the direction is clear: the tax amount will be linked to the market valuation of the property, utilizing the public property values published through the new government “home portal.” This approach replaces the current property tax, which the Left argues is unfair because identical square footage in different locations has vastly different values. Żukowska stressed that the new tax would replace, not supplement, the existing levy, assuring that there will be no double taxation on the same apartment.
She also clarified that the tax will be linked to the property’s value, not the simple number of units owned, addressing previous speculation about thresholds for second or third apartments. The revenue generated from this new, most likely annual levy, is intended to go directly to municipal and local government budgets, strengthening their financial situation.
Żukowska defended the proposal against criticism, calling the public fears “hysteria” and arguing that since capital is taxed very little in Poland, it is justified to introduce a tax linked to property value. She underscored the social need, noting that many young people don’t own their own home, which, in the Left’s view, justifies requiring those who own more to contribute more.
What This Means for Businesses in Poland
Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.
For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.
The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.
If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.
About Zalewski Consulting
This article was prepared by the Zalewski Consulting editorial team. We provide professional company formation, tax advisory, bank account opening, and legal advisory services in Poland. Contact us for a free consultation.
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