Real estate tax revolution

Monika Bilska

As nearly everyone already knows, there are major changes ahead in the real estate tax framework. The draft legislative proposal has already reached the Parliament and any revisions that may be proposed by the MPs are not likely to be essential.

The revised law is expected to become effective as of 1 January 2025 so preparation time is running short.

What will change?

The most important changes:

• Definition of a building: the reference to Construction Law Act has been scrapped and certain built developments which fully meet the criteria to qualify as buildings will nevertheless be excluded from the definition.
• Definition of a structure:  the new definition will be rather long-winded, with a broad and detailed list of the types of objects that qualify as structures (e.g. bridges, waste treatment plants, car parks).
• Regulation dedicated to taxation of developments with complex functions or of non-uniform character (multifunction stadiums, gas stations, waste treatment plants).

What to do?

Changes are deep enough to require a reclassification of what has so far been considered a building vs. a structure. As such, they will affect the scope of real estate tax.

For those reasons, you would do best to review your assets to determine how the legislative changes will affect your real estate tax compliance.

Our support

We will be happy to support you in this process.

Please let us know if you would like to receive more information or have your questions answered during a conference call or meeting.