Restrictions on the purchase of housing on the government’s legislative agenda
Although the content is not yet known, the basic premises of the draft law are already known. First, people who own at least five residential units (whether individual investors, investment funds or other institutions) will be able to purchase the next apartment once a year. What’s more, each subsequent – that is, the sixth and consecutive – acquisition will be subject to a 6 percent tax on civil law transactions (PCC), including for transactions on the primary market. Currently, the PCC is 2 percent of the apartment’s value and is only payable on secondary market transactions.
Who will the restrictions be for?
It is currently unclear whether the restrictions will apply only to entrepreneurs and investment funds, or also to individuals. According to the announcement, the matter remains open and will be discussed within the government.
The new law is expected to lead to a reduction in the housing gap created in the market. According to the latest data from the Polish Central Statistical Office (“GUS”), in 2022, the number of building permits issued fell by almost 13%, and new construction started fell by more than 30%. This means that in the next few years, the supply of housing will fall sharply, while the demand for one’s own place will grow, which could lead to a dangerous increase in prices. The draft is expected to limit the ability of investment funds, for example, to purchase apartments in bulk.
As soon as the draft law is made available to the public, we will discuss its assumptions in detail in our pages.
We would like to remind you that our specialists in the firm’s real estate department are available to assist both individuals and investors in the process of selling and acquiring residential units.