17:53 29 September 2025
Municipalities raising taxes on empty apartments
At the end of 2024, Poland’s Supreme Administrative Court (NSA) issued a ruling on taxing residential buildings rented under business activity. While favorable to entrepreneurs, some municipalities began interpreting it against developers, applying the highest property tax rates to unsold or vacant flats. This can mean a 28-fold increase—from PLN 1.19 to PLN 34 per sqm—with retroactive payments and interest. Cities like Katowice have already adopted this approach, with Kraków and Poznań considering it. Legal experts argue that only properties actually used for business should face higher rates, not simply owned by companies.
The dispute could spark numerous tax conflicts, straining relations between municipalities and developers in coming months.
