16:29 5 May 2025
HIgher tax to be charged on property sales, especially for house flippers
Poland’s Supreme Administrative Court (NSA) ruled that property "flipping"—buying, renovating, and reselling apartments for profit—is a form of business activity, not private sales. The ruling affects so-called "flippers," who must now pay higher taxes and meet business regulations. The Court emphasized the organized, profit-driven nature of such activities, especially when properties are quickly sold after renovation without personal use.
As a result, flippers may face income tax up to 32%, VAT, and additional obligations like ZUS contributions and bookkeeping. The ruling also enables more rigorous tax audits. Tax authorities can now reclassify property sales as business income, prompting sellers to consider registering businesses or consulting tax advisors to avoid penalties.
