vaT
•
The sale of buildings, infrastructure, or parts of buildings or
infrastructure, to the first acquirer or user after their:
- construction; or
- significant improvement (increase in the initial value by
30% or more),
•
defined as the “first occupation”, or the sale accomplished
before the lapse of two years from the first occupation is
subject to 23% VAT (8% for residential real estate, with certain
limitations).
•
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 VAT 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 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 undeve-
loped 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 covered
by VAT regulations is subject to a civil transactions tax of 2%
payable by the buyer within 14 days from the sale.
Î
acquisition of shares in a company holding
real estate
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 recognised
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 compa-
ny’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.
Investor Guide to Europe 2014
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