3 minutes

The End of Joint and Several Liability for Real Estate Tax? What Could Draft UD466 Mean for Co-Owners?

Written by

Natalia Kozłowska

Published

21.10.2026

Co-ownership of real estate is common in corporate groups and joint ventures. What is less obvious is that under the current rules each co-owner may be liable for the entire real estate tax liability, rather than only for the portion corresponding to its ownership share.

The assumptions underlying draft UD466 propose changing this approach.

Co-owners are currently jointly and severally liable

Under Article 3(4) of the Polish Local Taxes and Fees Act, the tax obligation is imposed jointly and severally on all co-owners or co-possessors.

In practice, this means that the municipality may seek payment of the entire tax from all co-owners jointly, from several of them or from any one of them individually.

Payment by one co-owner discharges the liability towards the tax authority, while settlement between the co-owners remains an internal matter.

Draft UD466 would remove joint and several liability

On 9 September 2026, the assumptions for a draft amendment to the Local Taxes and Fees Act and certain other acts, designated UD466, were published in the Council of Ministers’ legislative work programme.

The proposal prepared by the Ministry of Finance and Economy provides for the abolition of joint and several tax liability for land, buildings and structures held in co-ownership, joint possession or joint perpetual usufruct.

Tax would be allocated according to ownership shares

The current joint and several liability would be replaced with taxation in proportion to each co-owner’s share.

For fractional co-ownership, the tax liability would be determined according to each co-owner’s ownership interest.

For joint ownership and joint possession, the proposal assumes equal shares. Separate rules are expected to apply to assets covered by the statutory matrimonial property regime.

The change would also require new forms for real estate tax information and returns.

The proposal would reduce business risk

From a business perspective, the most important effect would be a reduction in exposure to the financial position of other co-owners.

Under the proposed rules, a co-owner should no longer be liable for the portion of real estate tax attributable to a business partner that fails to pay or loses liquidity.

The proposal also aims to simplify settlements where a taxpayer owns both solely owned and jointly owned real estate within the same municipality.

Only the assumptions are currently available

The stage of the legislative process is important.

At present, only the assumptions published in the government legislative work programme are available, rather than the final wording of the proposed legislation.

Adoption by the Council of Ministers is planned for Q4 2026. The effective date and transitional provisions have not yet been specified.

Until the legislation changes, the existing joint and several liability rules continue to apply.

Co-owned properties should already be identified

Businesses should begin by identifying real estate and structures held in co-ownership or joint possession, particularly in joint investments and infrastructure shared with other entities.

It is also worth reviewing how existing agreements between co-owners allocate real estate tax costs and whether those provisions may require amendment if the proposed rules are adopted.

The key conclusion is straightforward: draft UD466 may replace joint and several liability for real estate tax with taxation based on ownership shares, but at this stage only the assumptions are known and the final wording of the legislation remains open.

Please contact us if your organisation requires support in assessing the impact of the proposed changes on jointly owned or jointly possessed real estate.

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Does your organisation own or possess real estate jointly with other entities?

We support businesses in analysing real estate tax settlements involving co-ownership, joint possession and shared infrastructure. We also help assess how the proposed changes may affect existing tax arrangements and agreements between co-owners.

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