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• The sale of buildings, infrastructure or parts of buildings or
infrastructure, accomplished after the lapse of two years
from the first occupation is generally VAT exempt. Registered
VAT payers are entitled to opt for a charge of VAT if both the
buyer and the seller submit appropriate statements to tax
authorities before the transaction.
• The sale made before the lapse of two years from the first
occupation is also exempt if certain conditions are met, e.g.
the seller was not entitled to deduct input VAT with respect
to the real estate purchase or construction. There is no option
for charging this tax in such a case.
• The sale of ownership title to undeveloped land or perpetual
usufruct of undeveloped land designated for building
purposes is subject to 23% VAT. The sale of ownership title
to undeveloped agricultural land or perpetual usufruct of
undeveloped agriculture land is VAT exempt.
Civil transactions tax (CTT)
• The sale of real estate which is VAT exempt or not subject to
VAT regulations is subject to civil transactions tax of 2 %. The
civil transactions tax is payable within 14 days from the sale.
Acquisition of shares in a company holding a property
CIT/PIT
• The sale of shares in a company holding real estate is subject
to personal income tax or corporate income tax at a rate of 19
%. Costs incurred to acquire the shares may be recognized as
tax deductible costs.
• In accordance with double tax treaties concluded by Poland
with certain states, revenues generated from the sale of
shares in companies the assets of which comprise mostly
real estate located in Poland are subject to taxation in Poland
irrespective of the company’s registered office or residence of
the company’s shareholders.
CTT
• The sale of shares in Polish companies is subject to 1% civil
transactions tax payable by the buyer within 14 days from
the sale.
VAT
• The sale of shares in a company holding real estate falls
outside the scope of VAT, unless the seller performs it as a
business activity. VAT exemption applies to the sale in the
latter case.
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Investors Guide to Europe 2015