Cadastral taxation in 2025? You'll pay a fresh home tax

Is the Government of Donald Tusk plans to introduce a fresh tax? Officially, the subject is swept under the carpet, but in the crucibles there is simply a increasing volume of talk about cadastral taxwhich could completely change the real property marketplace in Poland. Is there truly anything to fear? Or is it just a political play?

Cadastral taxation – what is it and why does it arouse fear?

The cadastral taxation is simply a charge charged on the value of the property alternatively than – as at present – on its surface. In many countries of Western Europe has been in force for years and reaches up to 2% of the property value per year. For the average owner of the flat in Warsaw, this would mean additional expenditure in order 8,000 – 12,000 PLN per yearOh, my God!

No wonder The specified proposition to introduce specified a tax It creates large controversy and social resistance. There are already many fiscal burdens in Poland, and each fresh fee is seen as an attack on citizens' home budgets.

Is the government planning a cadastral tax? Officially, no. Unofficially – it's only a substance of time

Politicians ensure that no fresh taxation will beBut in the past, akin promises have come before many unpopular decisions. So can Poles sleep peacefully?

Experts indicate that pressure on additional budget revenues is increasing. The introduction of cadastral taxation would be an perfect solution for a government looking for a way to address the deficit. It is already estimated that this taxation could bring up to PLN 10 billion per year to the budget.

Who will gain and who will lose on cadastral tax?

This taxation would hit primarily in the mediate classes and persons with more than 1 property. In large cities where housing prices are high, this fee would be a immense burden. For example:

• Apartment worth PLN 800,000 in Warsaw – the yearly taxation could even be 8,000 – 16 000 PLN
• Single household home worth PLN 1.5 million – owner would gotta pay 15 000 – 30 000 PLN per year

Meanwhile developers and investment funds could number on peculiar relief or circumvention of the fresh tax, which would hit the individual housing owners even more.

How would the introduction of the taxation affect the real property market?

The cadastral taxation would have powerful impact on housing and rental prices. Experts shall forecast:

Decrease in property prices – many owners might want to sale apartments, which would increase supply on the market.
Higher rents – the tenants would surely transfer the costs of the fresh taxation to the tenants.
Problems of borrowers – persons paying mortgages would gotta find additional funds for the fresh fee.

Some say it's the beginning of the end of the “household” in Poland, and for persons with more than 1 property, a fresh taxation would mean need to sale or rent premises at much higher rates.

Cadastral taxation and politics – why is the subject coming back?

Although the government Officially denies Plans to introduce this tax, it comes back as boomerang on the occasion of all major budget hole. It is worth reminding that:

In 2019, The Ministry of Finance analysed the anticipation of introducing cadastral tax.
In 2021 There was an thought to include the apartments purchased for rent.
In 2023 The subject returned again in the public debate.

Now the situation is so interesting that The presidential election is coming.And any unpopular decision could mean decline in government support. Therefore, many experts foretell that If the cadastral taxation comes into force, it will not happen until 2025..

Will Poles agree to a fresh tax?

Public opinion polls show that Over 70% of Poles are against cadastral tax. Moreover, many experts indicate that introducing specified a charge could lead to mass protests, akin to those observed in France or Spain.

However, this does not change the fact that Government will request fresh sources of incomeAnd the cadastral taxation is immense for the budget. So can you truly sleep peacefully? Time will tell.

Summary – will the cadastral taxation enter into force?

Officially, the government denies the plans to introduce a fresh tribute – but past shows that it can only be a substance of time.
Cadastral taxation could hit millions of Poles – especially those who own more than 1 property.
The possible deadline is 2025-2027 – after the presidential election, erstwhile the political consequences will be reduced.
The impact on the real property marketplace could be huge – from a drop in housing prices to a drastic increase in rental costs.

Will the Donald Tusk government decide to take this step? If the past of Polish taxes taught us something, it is that new tributes are always introduced "for the sake of citizens" – but it is the citizens who pay the highest price for them.