PLN 500 per month for an apartment? Cadastral tax is getting closer
The cadastral tax is controversial. Will apartment owners pay up to PLN 500 per month? We explain what the IMF recommendations mean.
Cadastral tax, calculated on the value of real estate, arouses many emotions. Although it has remained only a proposal for years, the International Monetary Fund (IMF) has again included it in its recommendations for Poland. According to experts, changing the current real estate taxation system is necessary to repair the state budget.
What is cadastral tax?
Cadastral tax is a fee calculated based on the value of the property, not its area, as is the case with the current system. In countries where this tax exists, the rates are usually between 0.5% and 1% of the property value per year. In Poland, this would mean a huge increase in fees – for the owner of a flat worth PLN 600,000. it would be as much as PLN 6,000. PLN per year, i.e. PLN 500 per month.
IMF experts who analyzed Poland’s fiscal policy in October indicated the need to increase budget revenues. The property tax in its current form generates little revenue. For example, in 2025, the owner of a 50-square-meter apartment will pay only PLN 56 per year, and the owner of a house with an area of 120 m² – PLN 124.40. The introduction of cadastral tax would increase these amounts even several times.
Barriers to the introduction of the cadastre
Although the idea of introducing a cadastral tax in Poland appears regularly, its implementation is complicated and expensive. The biggest challenge is the lack of appropriate infrastructure – including full records of real estate with their market valuation. Even with modern technology, it would take years to prepare the system.
The second problem is political costs. The introduction of a cadastral tax could cause massive social opposition, especially among apartment and house owners who are already struggling with the high costs of maintaining real estate.
An alternative to the cadastre
There are many opinions that instead of introducing a cadastral tax, the government could adjust the current real estate tax. Higher rates for properties used for commercial or speculative purposes (e.g. flipping) would be easier to implement and less controversial.
Experts reassure us that even if the government decides to introduce a cadastral tax, this process will take many years. First, you need to create cadastres, i.e. detailed real estate registers with their valuation. Currently, there is no question of introducing a new levy in the near future.
