Real estate.  Changes in the tax on civil law transactions in connection with the purchase of the first apartment

From Thursday, August 31 of this year, the exemption from the Civil Transaction Tax (PCC) for the purchase of the first apartment or house will come into effect. For secondary market buyers, this can mean savings of tens of thousands of zlotys.

As previously announced by the Ministry of Finance, exemption from PCC will be applied when purchasing the first apartment under the Law of May 26, 2023 amending the Community Autonomy Law, the Social Forms of Housing Development Law, the Real Estate Management Real Estate Law, the Civil Law Transaction Tax Law and some other laws. The regulation was published in the Journal of Laws on July 31. The provisions relating to the PCC go into effect one month after the announcement.

What is exempt?

The Ministry of Finance indicated that the subject of the sale is: a right of ownership of a dwelling that constitutes a separate property, or the right of ownership of a single-family residential building or a cooperative ownership right in a dwelling in relation to a dwelling or real estate. The single-family home will be exempt from tax on civil law transactions.

Exemption will be available if the purchaser is a natural person or persons and none of them is entitled to obtain any of these rights or shares in these rights on the date of purchase of the right to an apartment or house.

For example, if the apartment cost 700,000 PLN. PLN, then at the current tax rate the buyer will have to pay tax in the amount of PLN 14,000. Zloty.

An exception to the regulations

Excluded from this are the persons who had, or had before that date, on the day of concluding the sale contract, a share in those rights that does not exceed or did not exceed 50 percent. acquired by inheritance. The Ministry of Finance informed that these persons may benefit from the exemption.

The ministry confirmed that the exemption will come into effect on August 31, 2023 and will not include sales made before that date.

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