Poland’s Finance Ministry plans to limit tax exemptions on property sales, impacting frequent transactions and potentially affecting housing market mobility starting in 2026.
New Housing Tax Relief Rules
Current housing tax relief allows individuals to legally avoid the 19% capital gains tax when selling a property, provided the funds are used for personal housing purposes. However, the Finance Ministry believes the regulation has been exploited for investment purposes and intends to restrict it.
A proposed amendment introduces a new condition that could significantly alter the rules for many taxpayers.
What is Housing Tax Relief and How Does it Work in 2026?
Housing tax relief is one of the most important exemptions in personal income tax. It applies when selling a property within 5 years of its acquisition.
Generally, selling a property within 5 years triggers a 19% capital gains tax, but this can be avoided if the conditions for relief are met. The mechanism is relatively simple: if you sell a property and use the proceeds for personal housing purposes, the income from the sale is tax-exempt.
Personal Housing Purposes – What Can Be Deducted and When Does Relief Apply?
This concept is key—and also very broad. In practice, it includes, among other things:
Why Does the Government Want to Limit Housing Tax Relief?
From the legislator’s perspective, the problem isn’t the relief itself, but how it’s being used. A pattern has emerged: selling a property, buying another, reselling, and repeatedly benefiting from the relief. This mechanism allows for repeated tax avoidance, even in investment activities.
The Finance Ministry believes this deviates from the original purpose of the relief, which is to satisfy personal housing needs.
Housing Tax Relief 2026 – Only Once Every 3 Years? New MF Rules
The draft amendment to the Personal Income Tax Act of March 16, 2026, introduces a new provision – Art. 21 para. 30b. Its purpose is simple: to limit the repeated use of housing tax relief. However, a crucial detail is often overlooked. The new limitation doesn’t concern when you purchased the property; something else matters – whether you have already used the relief when selling another property in recent years.
How Does the 3-Year Rule Work for Housing Tax Relief?
This means that:
This is a subtle difference, but with enormous consequences.
Housing Tax Relief and 3 Years – How to Calculate the Period in PIT? Note Tax Years
The draft doesn’t use a day-by-day calculation. The legislator uses the category of tax years. In practice, this means you could fall under the restriction sooner than after a full 3 years, or avoid it earlier if tax years change. This is one of those provisions that looks simple but requires a detailed analysis of the taxpayer’s specific situation.
Who Will Lose Out on the Changes to Housing Tax Relief? Not Just Flippers, But Ordinary Taxpayers Too
The Finance Ministry indicates that the goal of the changes is to limit the use of relief for investment purposes, including situations where taxpayers buy subsequent properties and repeatedly avoid tax thanks to the relief.
However, the mechanism has a broader impact. It could affect people who:
Housing Tax Relief 2026 – What’s Changing? Comparison of Rules Before and After the Amendment
Element | Currently | After Change
Housing Tax Relief | Can be used repeatedly | Limitation – no relief if used in the last 3 years
Period Calculation | No limitation | Tax years (not exactly 3 years)
Purpose of Provision | Personal housing needs | Limiting “rolling” of relief
Who it Affects | All taxpayers | Mainly people selling more than once every few years
Changes to Housing Tax Relief – Who Will Keep the Old Rules Until 2026?
The draft provides broad transitional provisions. The most important rule is that the new restrictions will only apply to properties acquired after December 31, 2026. This means that people who bought properties earlier will retain the old rules and can continue to benefit from the relief without the new restrictions, even with subsequent transactions. Interestingly, the Finance Ministry itself admits in the justification that the level of protection is higher than would result from the constitutional standard.
Selling a Property After 5 Years – When Will You Not Pay PIT Despite the Changes?
It’s worth remembering that the draft doesn’t change one fundamental rule. If you sell a property after 5 years of ownership:
In practice, this means that long-term property owners remain outside the scope of the changes, while the greatest risk applies to sales within a shorter period.
Will the New Regulations Block Relocations? The Effects of Changes to Housing Tax Relief
This question is increasingly appearing in expert analyses. If selling a property and buying a new one in a short period ceases to be tax-neutral, some people may give up on relocation. As a result, professional mobility may decline, housing decisions will be more conservative, and the secondary market may slow down in the “short-turnover” segment. This is a side effect that the draft doesn’t directly address, but which results from its structure.
