The commercial real estate market in Poland is very specific within the whole CEE region, as almost 98% of investments are performed by international players. Partly due to the lack of a local REIT regime, even local investors are forced to use foreign collective investment structures. On the other hand, Poland is an EU- and OECD-Member, as well as adopted a broad system of Double Tax Treaties with nearly 90 countries. So, it offers a range of different solutions for multinational investors. Therefore, one of the first questions we hear is – how the taxation system for international investors in the real estate business works. Let us answer it in brief.
When entering the Polish market, apart from structuring your corporate presence here, many details of your business model related to a concrete real estate project
will be asked to provide you with possible tax solutions.
The majority of tax topics oscillate around:
Corporate Income Tax – rates, allowances, tax shield components, depreciation rules, minimal taxation on leased buildings
Withholding Tax – rates, applicability of Double Tax Treaties, exemptions derived out of EU Directives, collection regime, importance of business substance and beneficial owner concept
VAT – taxation of rental services in different subsectors, taxation of asset deals, refund periods and rules
PCC – when this specific tax can be imposed
Property Tax – which projects enjoy which rates, and is it shifted to tenants
Tax instruments – with a broad system of tax rulings and other procedural instruments, Poland offers official ways to manage tax risk in the real estate business
Reporting – real estate companies are under a specific reporting and taxation regime in Poland. To a great extent, the taxation works similarly as for any other multinational corporation, but there are some specific rules to follow
Watch our video to learn more about setting up your real estate business in Poland.
15-minute video: Overview of real estate taxation.
How we can help you
Setting up the real estate business in Poland requires specific formal steps to be taken. We can support you in many of them, even if you do not plan any physical presence here in Poland.
We can help you out with the following points
- providing for ready shelf company for your business
- registration for tax purposes in Poland
- tax structuring of your business [entry, operational profits, distributions, exit]
- tax structuring of financing of the activity in Poland (equity/debt)
- due diligence, asset deals, share deals
- bank accounts opening and cash management
- accounting [property, general, fund accounting] & reporting, including IFRS
- MDR reporting
- other tax | accounting | payroll related aspects
Contact us
Whenever you need any initial consultancy or are not certain which support is required in your particular case, do not hesitate to contact us. We are here to make your business easier.
Our goal is to help you navigate the complex world of taxes and accounting.
