As of August 31, 2023, there is no longer a transfer tax (abbreviated as PCC in Polish) on the purchase of a first home on the second-hand housing market. Typically, the transfer tax for civil law transactions is 2 percent of the real property price, and in the case of a sales contract, it is paid by the buyer. This relief now exempts the purchase of a second-hand home from this transfer tax.
Under the new regulations, the acquisition of the following is also exempt from transfer tax:
The ownership of a separate flat
The ownership of a single-family residential building
The cooperative member’s ownership of a residential property, either a flat or a single-family residential building.
These new regulations apply exclusively to individuals who did not previously possess the aforementioned rights, or had a share in these rights that was 50 percent or less, unless it was inherited.
Changes for Investors:
Starting from January 1, 2024, there will be changes for individuals investing in real property. Specifically, the tax rate on a contract for the sale of the sixth flat (or subsequent flats) in the same building(s), or an interest in such a flat, with the same buyer, will be 6 percent. This applies when the buyer:
Acquires at least six flats that are separate real properties in one or more buildings on the same land, subject to VAT, or shares in such flats
Has already purchased at least five such flats or shares in them.
Consequently, the purchase of the sixth flat (and each subsequent one) will incur a double tax – both VAT and a transfer tax of 6 percent.
Real Estate And Construction Law
Our services encompass a wide range of real estate transactions and legal matters, including:
- Assisting investors in buying and selling real estate properties.
- Providing representation for landlords and tenants in lease agreements, as well as sale-and-lease back transactions.
- Representing developers in both commercial and residential projects.
- Arranging and overseeing due diligence reviews.
- Advocating for clients in proceedings to secure permits and administrative decisions during the construction process.
- Offering guidance in structuring and financing documents for diverse investment projects.
- Advising on and defending against restitution claims.
- Providing counsel on the corporate aspects of all transactions.
- Offering expertise in construction issues, both contentious and non-contentious, along with matters related to land use, planning, permitting, and environmental concerns.
- Crafting and negotiating various agreements and documentation essential for the investment or construction process.