Marek Belka about cadastral tax, flippers and possible market collapse. Where does this connection come from?

Marek Belka

Former Prime Minister Marek Belka believes that the introduction of the cadastral tax could lead to a collapse of the real estate market. The idea of ​​starting work on this levy comes back from time to time, but those in power are aware that it is a very unpopular topic and prefer not to touch on it.

Former Prime Minister and President of the National Bank of Poland, Marek Belka, was asked about the cadastral tax in the program “100 questions to…” TVP Info. This is a tax that does not exist in Poland, but operates in several European Union countries. The tax amount depends on the value of the property and ranges from 0.5%. up to 3 percent This is much more than the real estate tax we pay today: its maximum rate is PLN 1.15 per square meter. This means that in the largest cities the annual tax for a 50-square-meter apartment does not exceed PLN 70.

Cadastral tax is an issue that can be politically risky

If some government decides to introduce a cadastral tax (and this is a very unpopular decision and that is why it has not been taken), the owner would have to pay at least several thousand zlotys per year. Another thing is that the cadastral tax does not have to cover every apartment. The last time the topic appeared in public debate, it was proposed to apply to at least the third and every subsequent apartment. An apartment used for family housing purposes would remain taxed under the current rules, and any second apartment would also be free from high taxes. Only the third (or maybe only the fourth – the discussions were quickly put to rest by the government, who know that the topic of the cadastre evokes very negative emotions) real estate would be taxed “in the new way”.

Returning to the conversation with Marek Belka: he said that he “would prefer that people who have savings had real alternatives.”

– Today, such alternatives are emerging, e.g. the purchase of so-called anti-inflation state bonds. I started buying them a long time ago and I am satisfied. Even after paying the tax on the increase in capital value (i.e. Belka’s tax – ed.), I still received income higher than inflation – said the economist.

Belka about cadastral tax

In his opinion, the introduction of cadastral tax for investment apartments could cause a disaster on the housing market.

– Some people who own these investment apartments are not in the best situation, and many people who could afford it, e.g. small entrepreneurs, would go with these apartments to the market, either for rent or for sale, we would have very serious problems. disruption in the housing market. We would be happy with a drop in prices, but I’m not sure whether the economy would be happy with a collapse in the construction market, he continued.

The economist predicts that what the Left and activists expect would happen: the owners of several properties would decide that there is no point in keeping the apartments on which they have to pay high taxes (they would eat up part of the profits from rent) and they would sell them, thus increasing the pool of available apartments . It is assumed that the greater the supply (the number of apartments for sale), the lower the prices, because buyers have more choice and can negotiate.

The cadastral tax was last discussed “at the highest levels” in spring this year. The idea was revived by the Left, whose MPs argued that a tax on the value of real estate could reduce the problem of price increases by flippers and, as a result, reduce real estate prices. The topic was immediately cut short by Jarosław Neneman, Undersecretary of State at the Ministry of Finance. During the Local Government Financial Congress, he said briefly: “There will be no cadastre.”

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