Polish Finance Minister Denies Imposing New Taxes on Investment Properties

Poland’s Finance Minister has denied that her ministry is currently working on new taxes to restrict the purchase of investment properties. Reports had suggested that the government was considering implementing a number of measures, including a cadastral tax, vacancy tax, or additional taxation on the purchase of the sixth and subsequent flats.

These proposals had been put forward by the Minister of Development, Waldemar Buda, as a means of reducing speculation in the property market and strengthening the rental market. However, Rzeczkowska has now made it clear that no such measures are currently being pursued by her ministry.

The Financial Ministry Rules About Investment Properties:

While the Finance Minister has ruled out the possibility of new taxes for the time being, Deputy Minister of Finance Artur Soboń has confirmed that the government is looking to increase the PCC rate for transactions on the secondary market. This move is intended to discourage investment properties and funds from purchasing flats and to encourage more individuals to buy properties for their own use.

Soboń has also suggested that there could be an additional tax on purchases from developers, in addition to the 8% VAT already in place. This would further limit the purchase of flats by investment properties and funds and help to boost the supply of properties available for rent.

The proposed measures have sparked a heated debate in Poland, with some arguing that they will discourage investment properties in the property market and lead to a decline in property prices. Others, however, argue that the measures are necessary to prevent speculation and ensure that the rental market is adequately supplied. Supporters of the measures argue that they will help to address the problem of low supply in the rental market, which has been exacerbated by the COVID-19 pandemic.

The Polish property market has been booming in recent years, with rising prices and high demand from both local buyers and foreign investors. However, there are concerns that this growth is unsustainable and that a property bubble could be forming. The government is keen to prevent a repeat of the property crash of the late 2000s, which had a major impact on the Polish economy.

Overall, it is clear that the Polish government is taking steps to address the issue of low supply in the rental market and to prevent speculation in the property market. While there is debate about the best approach to take, it is clear that something needs to be done to ensure that the rental market is adequately supplied and that property prices remain stable. It remains to be seen what further measures the government will take in the coming months, but it is clear that the issue of property taxation will remain a topic of heated debate for some time to come.