New tax on fences and garages. Who will pay more?

As of January 2025, amended real estate tax regulations have been in force, introducing new obligations for owners of fences related to business activities. Let’s look at the details of these changes to better understand who will have to pay the new tax.

Fence tax – who does it apply to?

Pursuant to the amendment to the Act on Local Taxes and Fees, fences were recognized as structures. However, taxation does not apply to all owners:

• Fences related to business activities – will be subject to real estate tax.
• Private fences – those that are part of property not related to professional or business activities remain exempt from taxation.

These changes are intended to avoid additional tax burdens for individuals who use fences only for private purposes.

Other changes in property taxes for 2025

The amendment also introduces changes in the taxation of residential buildings, land and garages:

1. Residential buildings

   The maximum tax rate increased to PLN 1.19 per square meter (in 2024 it was PLN 1.15).

2. Land under residential buildings

   The tax rate increased to PLN 0.73 per square meter (previously PLN 0.71).

3. Garages

   • Garages that are part of residential buildings are subject to the same rate as the residential part – PLN 1.19 per square meter.

   • Detached garages are taxed much higher – PLN 11.48 per square meter. This is as much as ten times higher than the rate for residential parts.

Tax reliefs and exemptions – decisions in the hands of municipalities

Municipalities have the option of introducing tax breaks for residents. People who want to find out whether they can benefit from such exemptions should contact their local office. This is where they will obtain detailed information about available reliefs and the procedures for granting them.

What do the changes mean for property owners?

The amendment to the regulations is aimed at unifying tax rules and better adapting rates to the actual use of real estate. However, property owners, especially those with detached garages, may experience a significant increase in tax costs. In turn, private individuals who do not run a business can rest easy – their fences remain exempt from taxation.