Sale of real propertyPrint

Foreigners may sell real property on the same terms and conditions as any Polish citizen.

Income tax due for selling real property

When selling real property, one should remember that they will have to pay income tax on the sale. Payment of this tax is obligatory if the sale takes place within 5 years from the end of the calendar year when the real property was purchased or erected. This means that the sale of a real property that was purchased or built before the 1st of January 2009 is not subject to taxation anymore.

The tax amounts to 19% of the income obtained from the sale of real property and it is due on the date of filing the annual tax return form, i.e. by 30 April of the subsequent year.

The tax is included in a separate tax return form. Sample documents are presented below:

Income means the revenue from the sale taking into account the costs of sale and costs of purchase or construction of the real property, increased by documented expenses incurred during the period of ownership of the real property increasing its value and increased by inflation.

The costs of sale usually include:

  • notarial fees,
  • stamp duties,
  • court fees,
  • advertising costs,
  • brokerage fees.

Note: If part of the revenues obtained from the sale of a flat is used for own residential purposes (the purchase of another flat or house) then this portion of the income from the sale of real property is not subject to taxation. If the total revenue was expended for residential purposes, then it is not subject to taxation. However, the new real property has to be purchased not later than 2 years after the end of the calendar year in which the sale took place.

More information about income tax on the sale of real property in return for payment is available here ->