First flat on the secondary market without PCC

Real Estate Attorneys of our Law Firm in Poland informs about an amendment to the Act on tax on civil law transactions (PCC). According to the latest amendments, the purchase of a first apartment on the secondary market will be exempt from the obligation to pay PCC tax. The law is currently awaiting the President’s signature. The changes are expected to come into force 30 days after the announcement.

Changes in the regulations

According to the current regulations, when buying a flat or a house on the secondary market, the buyer is obliged to pay a tax on civil law transactions in the amount of 2% of the property value. The taxpayer in this situation will be the notary.

After the change, the buyer will be exempt from the tax if he purchases his first flat. If he already owns his own property, he will not benefit from the exemption. The exception is the situation in which he has inherited a property – according to the regulations, in order to benefit from the exemption, one may own half of the inherited property.

Therefore, it is worth waiting with the purchase of a flat or house until the new regulations come into force in order to avoid paying the tax. You can thus save 2% of the price of the property.

Higher tax for those acquiring several properties

The tax on civil law transactions will increase for those purchasing properties in bulk. The purchase of the sixth and each subsequent flat in one development will be taxed at the rate of 6% of the value of the property.

Do you plan to buy a property in Poland?

If you have questions about the purchase of a property in Poland, please contact our Real Estate Law Office in Warsaw, Poznan, Krakow and Wroclaw.