3rd flat taxation is ready. The government is afraid of its own voters!

Great changes in the Polish real property marketplace hang in the air, but their implementation blocks the political deadlock. The bill introducing cadastral taxation from the 3rd and subsequent flats is already ready, and its assumptions uncover that it could hit only 0.8 percent of Poles. Nevertheless, the government openly admits that they fear the consequence of their own voters, which effectively hinders further work. Minister of Funds and Regional Policy, Katarzyna Pełczyńska-Nałęcz from Poland 2050, explicitly speaks of “coality” as the main obstacle. Does this mean that a key reform, recommended by global institutions, will be postponed for years? We're looking at precisely what the task contains and who will be affected by possible changes.

Who actually pays the fresh tax? Exemptions and controversy

Although the cadastral taxation on the 3rd flat raises heated discussions, its scope is amazingly narrow. According to the portal banker.pl, Minister Katarzyna Pełczyńska-Nałęcz states that in Poland only 0.8 percent of citizens has 3 or more properties. That means the fresh burden would contact about 200-250 000 people All over the country. Among them would be well-known politicians, which adds the substance of spice. For example, MP Robert Kropiwnicki of the Civic Coalition declares to have 11 apartments, and Małgorzata Niemczyk, besides from KO, has 10 properties. Agnieszka Soin of PiS is the owner of 8 and Krzysztof Śmiszek of the Left – seven.

However, key to many owners are provided for in the exemption project. According to the wnp.pl portal, apartments purchased for children would be exempt from tax. Minister Pełczyńska-Nałęcz emphasises that if the owner has at least 2 children and declares that the premises will be intended for the offspring, these properties would not be taxed on 1 dwelling per child. This means that with 2 children you can have even four non-tax properties.

It is worth noting that not only Poland 2050 has a ready project. The leader of the Left, Vladimir Czarzasty, in May on Radio Zet revealed that the Left besides prepared its own solutions. Their proposal, according to the portal 300polityka.pl, suggests taxation from the 3rd premises without additional exemptions, which could affect a wider group of investors. The discussion on a common solution remains open.

Why does the government want to change the market? intent and global pressure

The main nonsubjective of the proposed taxation is not to fill the state budget, although in the face of a evidence deficit (close PLN 300 billion for 2025) each additional gold is at the weight of the gold. As Minister Pełczyńska-Nałęcz explained in TVP Info, it is primarily about redirection of investments from the real property marketplace to another economical sectors. "The aim is to guarantee that money does not melt into concrete, but that it goes into development," she stressed. Taxing a tiny group of owners of many housing is to be a deterrent to further investment in concrete, and encouraging capital placement in start-ups, innovative companies and economical development.

Statistics confirm the increasing problem of housing availability. Minister Pełczyńska-Nałęcz at a conference at the Warsaw School of Economics warned that housing prices in Poland were rising much faster than wages. 2 years ago, you had to pay for a 50-metre flat in Warsaw. 84 average salariesand now 92. This drastically reduces the chances of young people on their own premises. The introduction of cadastral taxation in Poland is besides recommended by the global Monetary Fund (IMF) and the Organisation for economical Cooperation and improvement (OECD), which adds importance to the arguments of supporters of the reform. The cadastral taxation is listed alongside the digital taxation on technological giants and the bank taxation as 1 of the pro-development projects to release capital.

What does cadastral taxation mean to your finances? Analysis of consequences

If you have 1 or 2 apartments, a fresh cadastral taxation He won't contact you in any way.. You will inactive be able to invest in real property without additional taxation burden, which is key information for most Poles. However, if you are considering buying a 3rd flat as an investment, you must be ready for crucial costs. Cadastral tax, calculated on the marketplace value of the property, may even be 1-4 percent of its yearly value. This means that you can even pay from an flat worth PLN 500 000 5-20 1000 PLN taxation per year. Although the ministry promises exemptions for housing intended for children, details are unknown, which introduces a hazard element.

For those who already own 3 or more housing units, the introduction of cadastral taxation will mean significant increase in the maintenance costs of the property. This may prompt any owners to sale parts of the premises to avoid additional burdens. Experts of the portal engineering.pl estimation that the sale could be additionally 100-150 000 housing units, previously treated as a capital injection. specified an increase in supply could, at least for a time, reduce housing prices on both the primary and secondary markets, which would be beneficial for buyers.

However, there is besides a dark side to the medal. Housing owners, charged with fresh taxes, can opt for increasing rental pricesto compensate for additional costs. This, in turn, could exacerbate the crisis of housing availability by hitting tenants who are already struggling with advanced rates. The government, seeking to redirect capital, encourages consideration of alternate forms of investment, specified as shares, bonds, investment funds or start-ups, which could become more attractive options than "creasing in concrete".

Will Poland catch up with Europe? Implementation costs and prospects

Most European countries have long applied cadastral tax. In France, owners pay about 1 percent of the property value per year, likewise in Germany. Italy went even further by charging taxation on the second premises, and the proceeds from it are around 0.4 percent of GDP, according to engineering.pl. Poland remains 1 of the fewer countries of the European Union, where there is an archaic taxation on the area and not on the value of the property. This puts us among the exceptions and underlines the request to modernise the system.

However, the introduction of the fresh strategy is simply a immense logistical and financial challenge for the state. It would require valuation of almost all properties in the countrywhich would entail tremendous costs. Experts inform that, in cases where the taxation would only concern the 3rd and subsequent housing units, the budgetary receipts could not be balanced with the cost of maintaining specified a complex system. In the utmost case, as the engineer of engineering.pl emphasizes, budget revenues could not even cover the expenses for its operation. Therefore, any propose a more extremist but more effective solution: a cadastral taxation on all properties, but in a progressive way – for example 0.3 percent of the first place, 0.5 percent of the second and 1 percent of the 3rd and subsequent.

Despite the readiness of the projects, their implementation remains in the political sphere of negotiations. Minister Pełczyńska-Nałęcz clearly stated that without an entry in the coalition agreement, Poland 2050 would not impose cadastral tax. "This is the minute where we have a deep belief that this is good. We argue, we show data, but we behave loyally and responsibly towards the coalition," said the minister on Radio Zet. Much will depend on the result of interior talks in the governing coalition. If the subject goes into a coalition agreement before the 2027 elections, the cadastral taxation can become a reality, changing the face of the Polish real property market. Otherwise, the draft will stay in the drawer until the next term.