We classify buildings and structures, verify returns, calculate potential overpayments and assess VAT and PCC on real estate transactions.
How property is recorded in the asset register does not always determine its tax treatment. We assess buildings, structures and documentation, review returns and the scope for adjustments or overpayment recovery. We also assist with disputes with municipalities and real estate transactions.
Property tax and real estate transactions
A property tax return is filed once a year. Since 2025, the legislation has used its own definitions of a building and a structure. A hall, silo or machine foundation therefore needs to be assessed by reference to its construction and function. A different classification can change the tax base: buildings are taxed on usable floor area, while business-related structures are generally taxed on value at 2% annually.
We review the fixed asset register and technical documentation, compare the existing calculation with our findings and handle the case if the municipality challenges the tax treatment.
Let’s review your company’s assets
When a review is worthwhile
Classification and the tax base can be assessed ahead of the next return. For returns already filed, a correction and analysis of a possible overpayment may be appropriate.
- a return was filed without a full asset review under the definitions applicable from 2025;
- the site contains installations, supporting structures or machine foundations;
- you have silos, tanks or other facilities whose primary parameter may be capacity;
- the municipality has challenged the classification of an asset or the tax base;
- you suspect you are paying more tax than is due;
- you plan to sell or purchase real estate and need to determine the VAT and PCC implications;
- you are acquiring property and want to assess the right to deduct VAT.
For industrial installations and facilities measured by capacity, technical details determine the outcome. The name in the fixed asset register alone is not enough to establish the correct category.
Property tax rates in 2026
The municipal council sets monetary rates within the maximum limits specified in the announcement for 2026. We should also check the relevant municipality’s resolution, as it may provide lower rates.
| Taxable property | Maximum rate for 2026 | Tax base |
|---|---|---|
| Buildings connected with business activities | PLN 35.53 per m² | usable floor area |
| Other buildings | PLN 12.00 per m² | usable floor area |
| Land connected with business activities | PLN 1.45 per m² | area |
| Structures connected with business activities | 2% of value | value determined under Article 4 of the Act |
For depreciable structures, the base is generally the value adopted for depreciation purposes, without deducting depreciation charges. A change in classification therefore needs to be translated into an actual calculation, rather than merely comparing rates.
Legal persons file DN-1 by 31 January for the relevant year and pay monthly instalments by the 15th day of the month, with January payable by 31 January. Individuals generally file IN-1 within 14 days of the tax obligation arising, and the municipality assesses the tax by decision. Rules for legal persons apply to certain forms of co-ownership.
What changed from 2025
Following the Constitutional Tribunal’s judgment of 4 July 2023 (SK 14/21), the legislature changed the definitions of a building and a structure. Since 1 January 2025, they have been set out directly in the Local Taxes and Fees Act, together with the list of facilities in Annex 4.
The annex identifies one group of structures. The definition also covers certain construction parts of technical equipment, building-related equipment and machine and equipment foundations erected through construction works. An installation inside a building does not automatically become separately taxable: each part must be assessed against the statutory categories.
The definition of a building excludes a facility used to store bulk, solid-piece, liquid or gaseous materials where capacity is the primary technical parameter determining its purpose. This may apply to some silos and tanks. The construction and function of the particular facility determine its classification.
Overpayments and disputes with the municipality
If a recalculation identifies an overpayment, we prepare a corrected return and an application for determination of the overpayment under Article 75 of the Tax Ordinance. The limit is the tax liability’s limitation period: generally five years from the end of the year in which payment fell due. Each earlier year must be assessed under the rules that applied in that year.
We support the application with calculations, records and reasons for the classification. The relevant municipal authority considers the case; we also prepare the documentation with a possible appeal and administrative court review in mind.
VAT and PCC on real estate sales
For supplies of buildings and structures, we first establish the date of first occupation, how the property has been used and its improvement history. The exemption under Article 43(1)(10) of the VAT Act generally applies to a supply at least two years after first occupation. Where that exemption does not apply, the conditions in point 10a are examined separately.
| Article 43(1)(10) | Article 43(1)(10a) | |
|---|---|---|
| When it may apply | After first occupation and at least two years have elapsed | Where point 10 does not cover the supply and the conditions concerning the seller’s deduction entitlement and improvements are met |
| Opting to charge VAT | Possible if both parties meet the conditions, including registration as active VAT taxpayers and submission of a joint statement | No option to waive the exemption under Article 43(10) |
| Effect of the exemption on a property sale | Generally 2% PCC payable by the purchaser | Generally 2% PCC payable by the purchaser |
The statement waiving the exemption under point 10 can be submitted to the competent head of the tax office before the transaction or included in the notarial deed. For a VAT-taxed transaction, the purchaser’s deduction entitlement depends, among other things, on using the property for taxable activities. VAT and PCC consequences should be established before agreeing the price and signing the deed; as a rule, land follows the VAT treatment of the building or structure situated on it.
What Tax Legal Partner’s support covers
We start with the company’s assets and the data underlying the return. Depending on the review findings, our work may cover:
- reviewing records and technical documentation against the definitions of buildings and structures;
- checking DN-1, usable floor area and the value of structures;
- corrected returns and applications for determination of overpayments;
- representation before municipalities and administrative courts in classification disputes;
- assessing VAT and PCC on property purchases or sales;
- statements opting to charge VAT and documenting first occupation;
- analysing taxation of letting, leases and business-related land;
- applications for tax rulings on VAT and PCC and, for property tax, to the competent municipal authority;
- assessing property tax during the investment process.
How we work together
- Inventory and classification. We compare the fixed asset register with technical documentation and the actual use of the facilities.
- Calculation and decision. We show the difference between the current tax treatment and the review findings, including the risk of a dispute. You then decide whether to correct the return or apply for an overpayment determination.
- Handling the case. We prepare the documents and represent you before the municipality and, if necessary, the administrative court.
Let’s review your assets
Tell us what facilities the company owns and how they are classified in the return, or describe your planned transaction. During the first discussion, we will establish whether an asset review is needed and what can be done before the next return.
Patryk Walewski handles property tax, real estate transactions and tax reviews. Jarosław Włoch handles overpayment disputes and VAT on transactions.
Frequently asked questions
The maximum rates are PLN 35.53 per m² for business-related buildings, PLN 1.45 per m² for business-related land and 2% of the value of structures. The municipal council determines the monetary rate applicable in its municipality.
The definition of a structure covers foundations for machines and technical equipment as technically separate parts of items forming a functional whole, where erected through construction works. The extent of the construction part must be established; this does not mean taxing the entire machine.
The name alone does not decide the matter. Facilities for storing materials whose primary technical parameter determining their purpose is capacity are excluded from the definition of a building. The construction and function of the particular facility are assessed.
The entities listed in Article 6(9) of the Act, including legal persons, file DN-1 by 31 January for the relevant year. They pay monthly by the 15th day, with January payable by 31 January. Individuals generally file IN-1 within 14 days of the obligation arising; exceptions include certain co-ownership arrangements with a legal person.
First occupation, the seller’s deduction entitlement and any improvements must be established. The exemption under Article 43(1)(10) can be waived if the conditions are met, including a joint statement by active VAT taxpayers. The exemption under point 10a does not offer that option. A VAT-exempt property sale generally attracts 2% PCC; VAT deduction on a taxable transaction depends on the intended use of the purchase and other conditions.
A corrected return and an application for determination of an overpayment may be filed within the limitation period. This is generally five years from the end of the year in which payment fell due. Each year is assessed under the law applicable at that time; the definitions introduced in 2025 do not apply retrospectively.
Have a question that is not covered here? Write to us. We will establish whether you need an asset review or an assessment of one transaction.