Cadastral tax causing tensions in real estate market
The government’s plan to introduce a cadastral tax on owners of three or more apartments is already unsettling Poland’s property market. Although details are not yet published, the proposal raises concerns about rising rental prices and pressure on private landlords. According to rental-market expert Piotr Zdanowski, the tax will hit ordinary middle-class owners rather than large investors. Because it is effectively a wealth tax based on market value, landlords would likely pass costs on to tenants, driving rents higher.
Some owners may sell properties to avoid annual charges, reducing rental supply and pushing rents up further. Zdanowski warns that uncertainty and rushed regulation could freeze investment and even accelerate capital outflow to foreign real estate markets.