No plans for new property tax in Poland

On November 19 Poland’s Prime Minister Donald Tusk assured property owners that there are no plans to introduce some form of cadastral tax. Currently, the amount of property tax depends on its surface. The municipality determines the rate with upper limits being set by an Act. As a result, the owner of a house located in the center of Warsaw, might pay the same as the holder of a similar house in a small town.  It has been about ten years since mention of a tax has been included in an electoral platform.
Ms Olimpia Bronowicka (left), spokesperson for the Polish Real Estate Federation, said of such a property tax: “A common opinion of real estate experts in Poland is that the implementation of the ad valorem property tax would be very advantageous for the state and its revenue stream. As one of its implications, the most affluent people would live in the most prestigious locations in the cities. That in turn should contribute to higher attractiveness and improved curb appeal of streets and quarters being a showcase of the city.”
“Since the implementation of the ad valorem tax translates into higher costs of living, it will trigger much opposition from the majority of people. Nobody wants to be deprived of what he or she has possessed so far and have to pay more. The implementation of the ad valorem taxation appears such an unpopular decision that so far no government and no political party has undertaken the effort to put it into practice,” Bronowicka.
According to a recent news item posted at the Federation site, it has been about a decade since a tax was mentioned in an electoral program. Since then, politicians have renounced the idea.

ICREA