New property tax? Homeowners may be surprised

In fresh weeks, much has been said about plans to introduce a fresh property tax, which may affect housing owners in Poland. The government is considering various taxation options that could importantly change the fiscal burden on property owners. What changes are possible and what does this mean for the housing market?

What is simply a fresh property tax?

The government plans to introduce a fresh property taxation to replace the current property tax. The main presumption is to introduce a progressive taxation scale, which means that people with more costly properties will gotta pay higher taxes. The fresh rules aim to increase budgetary gross and to reduce speculation in the real property market.

What changes can be made?

1. Progressive property value tax
   The most debated option is to introduce a progressive taxation scale based on the value of the property. Lower-value housing owners could pay lower taxes, while people with costly apartments would gotta pay higher fees.
2. Taxation of commercial and investment real estate
   The government is besides considering introducing additional burdens on investment and commercial property owners. This may apply to both natural persons and companies that invest in real property for rent. This taxation would aim at reducing speculation on the marketplace and reducing request for housing purchased for subsequent resale.
3. Empty tax
   Another proposal is the introduction of a vacant tax, that is, immovable property not utilized for housing or renting. This is intended to discourage owners from keeping the property unobserved, which would contribute to better usage of available housing resources.

What could be the consequences of a fresh tax?

1. Impact on property prices
   The introduction of a fresh taxation could lead to an increase in property prices, especially in large cities. Owners may effort to transfer fresh costs to buyers, which will further hinder the availability of housing for young people.
2. Change in the structure of the rental market
   Higher taxation of investment housing can reduce the number of housing available for rent, which can lead to an increase in rents. On the another hand, it may besides force owners to lower rental prices to keep their properties filled.
3. Attempts to circumvent the fresh rules
   As experience shows, the introduction of fresh taxes frequently leads the owners to look for ways to circumvent them. It is possible that any investors will search legal gaps or taxation optimization to reduce their burden.

What can you do to prepare for possible changes?

1. Financial situation analysis
   Property owners should carefully analyse their financial situation and prepare for any additional burden. This may require a change in the investment strategy or restructuring of the property portfolio.
2. Follow-up of legislative changes
   It is crucial to keep track of the reports on the fresh taxation rules in order to be able to respond to the changes planned.
3. Consultation of the taxation adviser
   In case of more complicated situations, it is good to usage the aid of a taxation advisor to aid realize the fresh rules and advise on how best to adapt to the fresh situation.

The introduction of a fresh property taxation can bring crucial changes for housing owners and the full property market. The progressive taxation scale, additional charges for investment property and the vacant taxation are only any of the solutions under consideration. To avoid negative consequences, it is worth considering how best to prepare for possible changes.