As of 1 January 2025, significant amendments to the Act on Local Taxes and Charges have entered into force, changing the way real estate owned by entrepreneurs is taxed. In particular, the amendments introduced new statutory definitions of key terms, including “building” and “structure,” and removed the previous references to the Construction Law. These changes were adopted following the judgment of the Constitutional Tribunal of 4 July 2023 (case no. SK 14/21), in which the existing regulations were declared inconsistent with the Constitution of the Republic of Poland.
Key legislative changes
The amending act of 19 November 2024 introduced independent definitions of “building” and “structure,” eliminating references to non-tax legislation. The purpose of this reform was to increase transparency and precision in identifying taxable objects and to ensure that tax classification is based directly on tax law.
In practice, however, the new definitions may change the legal classification of certain facilities for tax purposes. As a result, some facilities that were previously not treated as taxable structures may now fall within the scope of taxation, which may increase the tax burden on entrepreneurs.
Impact on entrepreneurs
The introduction of the new statutory definitions has required entrepreneurs to conduct a detailed inventory and legal-tax review of their fixed assets in order to classify their properties correctly under the amended provisions. In many cases, this process has identified facilities that had not previously been reported for real estate tax purposes.
This has led to an increase in the tax base and, consequently, higher real estate tax liabilities. The practical impact of the amendments is therefore not limited to terminology, but extends directly to the calculation of tax liabilities and the scope of taxable assets disclosed in tax returns.
Potential financial consequences
An analysis of tax returns for 2025 indicates a significant increase in the declared value of structures compared with the previous year. For example, in one of Poland’s larger cities, the value of reported structures increased by PLN 250 million, potentially translating into an additional PLN 5 million in real estate tax revenue.
At the same time, tax returns filed for 2025 are currently being verified by the competent authorities. As a result of this review, taxpayers may be required to submit corrections and make additional payments if certain facilities are found to have been incorrectly classified under the amended regulations.
Summary
The amendments to the real estate tax regulations, effective from 2025, have significant practical consequences, particularly for entrepreneurs. The new definitions of “building” and “structure” require a thorough legal and tax review of assets and may lead to corrected tax returns and increased tax liabilities.
