As of 1 January 2025, amended provisions regarding real estate tax have entered into force.
This is one of the most significant amendments to this tax in recent years. What exactly has changed?
The primary purpose of the amendments was to eliminate interpretative doubts by removing the references — in the previously applicable definitions of a building and a structure — to the provisions of construction law. In other words, it was supposed to be simpler.
And what is the situation in practice? Despite the autonomous definition of a structure, in practice there remain numerous doubts and ambiguities regarding the correctness of taxation. This is because, in particular, the definition of a structure contains many open and undefined terms, such as:
The above expressions are very broad and therefore carry the risk that the tax authority may challenge the classification of various construction objects. This, in turn, may result in an increased tax burden.
Currently, for a given object to be classified, among others, as a structure, it must have been erected as a result of construction works. This construction was intended to limit the scope of taxable objects. Meanwhile, construction works have been defined as "works consisting in construction, reconstruction, extension, superstructure, alteration or assembly, to which the provisions of the Act of 7 July 1994 – Construction Law apply."
Thus, the legislator has not fully broken with referencing the provisions of construction law and, moreover, has recognized "assembly" as construction works, which may be broadly understood.
As a result, many taxpayers are currently undergoing verification activities conducted by the tax authority, and a significant number of entities have not yet verified whether the amended regulations will affect, among other things, the real estate tax returns they submit.
If you have not yet assessed the impact of the amendment on your business activities, we encourage you to contact us — we will support you in this matter.
The new regulations have been in force since 1 January 2025 and introduce new definitions of buildings, structures and construction works. Do not wait for the tax authorities to challenge your tax settlements — verify that your real estate is classified and taxed correctly.
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