Catastral tax will hit investors? Here is the government’s proposal

The Minister of Funds and Regional Policy Katarzyna Pełczyńska-Nałęcz was in favor of introducing a catastral tax, which would be covered by people with at least three apartments-says PAP. As she noted, it is not a universal fee, but about a solution that would affect less than 1 percent. citizens. The new tax is to limit speculative investment in real estate and increase the availability of apartments for people looking for premises for their own use.

Property in concrete

The head of the ministry explained that a large part of private capital in Poland “sits in concrete”, which means that she is invested in real estate. In her opinion, these funds could be much better used in innovative sectors, such as startups, new technologies and economic development. Taxation of excess premises would help move capital to more productive areas.

The minister emphasized that the new system should take into account the situation of families. Owners with at least two children could be exempt from the fee if the apartments were intended for offspring. In practice, this would mean that one apartment would fall on one child, and only the surplus of premises would be covered by tax.

Discourage investors

Pełczyńska-Nałęcz also pointed out that the proposal will not hit people with one or two apartments that use them for housing or family purposes. The new solution would primarily discourage the purchase of a large number of premises only for investment purposes, which currently raises prices and limits the availability of apartments.

The minister also expressed skepticism to the introduction of REITs (Real Estate Investment Trusts) in the Polish housing system. As she noted, experience from other countries show that funds of this type contribute to the increase in rent and housing prices. In her opinion, this would be particularly unfavorable in the conditions of the Polish market, where the availability of premises is already a challenge for many citizens.