Property tax will undergo a revolution. No more unfair system

The Ministry of Finance and Economy is preparing a real estate tax reform. The most important proposal applies to people who jointly own an apartment, house, land or building.

Property tax is about to change. No more paying for others

Currently, real estate owned by several people is subject to joint and several tax liability. The commune may demand payment of the entire amount from all co-owners, several of them or only one person. Payment of the debt by one co-owner releases the others from the office.

The UD466 project aims to abolish this rule. The taxpayer’s liability would be limited to the part corresponding to his share in the ownership right. A person owning one quarter of the property would therefore essentially be responsible for one quarter of the tax, not the entire amount.

Everyone will pay for their share. What about joint ownership?

The new rules are intended to cover land, buildings and structures in joint ownership, joint possession or perpetual usufruct. In the case of fractional shares, the tax would be calculated according to their amount.

In the case of joint ownership and joint ownership, the project provides for the adoption of equal shares. A separate solution is to apply to property covered by marital community property. Its details should be included in the bill.

Are you buying an apartment? A notary can act for the taxpayer

The reform is intended to reduce formalities after purchasing or selling residential property that will not be used for business activities. At the request of the buyer or seller, the notary would send the commune an extract from the notarial deed with the data needed for tax assessment.

If the document contained all the required information, the taxpayer would not have to submit the form himself. This is to reduce the risk of errors and the number of calls from the office.

The changes will also include agricultural and forestry taxes

If the co-owners are natural persons, real estate tax and agricultural and forestry taxes are, as a rule, to be determined in separate decisions. The total monetary liability could still include agricultural and forestry taxes.

The project also provides for new forms and clarification of rules regarding local government real estate. Municipalities would not have to pay tax to themselves on land in their perpetual usufruct.

The new rules are not yet in force. There is a deadline for the government

The proposal is at the stage of government legislative work. The planned date of adoption of the project by the Council of Ministers is the fourth quarter of 2026. Only later can the act be submitted to the Sejm, which is why the co-owners continue to settle tax according to the current rules.