As of 1 January 2025, amendments to the real estate tax regulations have entered into force.

This is one of the most significant amendments to this tax in recent years. What has changed?

• new definitions of a building and a structure have been introduced, independent of construction law;

• Annex 4 to the Act has been introduced, listing specific categories of structures, including, for example, free-standing industrial installations permanently attached to the land;

• legal definitions of permanent attachment to the land and construction works have been introduced.

The primary purpose of the amendments was to eliminate interpretative doubts arising from the previous references — in the definitions of a building and a structure — to the provisions of construction law. In other words, the regulations were intended to simplify the system.

And what is the situation in practice?

Despite the introduction of an autonomous definition of a structure, in practice there remain numerous doubts and ambiguities regarding the correct classification and taxation of certain assets. This is primarily because the definition of a structure contains many open and undefined terms, such as:

• construction-related equipment; or

• technical equipment.

These expressions are very broad and therefore create a risk that tax authorities may challenge the classification of various construction objects, potentially resulting in an increased tax burden.

Currently, for a given object to be classified as a structure, it must have been erected as a result of construction works. This approach was intended to limit the scope of taxable assets. However, 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 abandoned references to the provisions of construction law and, moreover, has recognized “assembly” as construction works, which may be interpreted broadly.

As a result, tax audits and verification proceedings are currently ongoing for many taxpayers, while a significant number of entities have not yet verified whether the amended regulations affect, among other things, the real estate tax returns they submit.

If you have not yet assessed the impact of the amendments on your business, we encourage you to contact us — we will be happy to assist you.