New Property Tax Regime Proposed for 2027: Impact on Multiple Homeowners

A new parliamentary proposal seeks to replace area-based property taxes with a value-based system starting in 2027, potentially increasing annual levies for owners of multiple residential units by thousands of percent.

The Shift Toward Value-Based Taxation

Current property taxes are calculated based on usable square footage, resulting in annual costs of mere tens or hundreds of zlotys. A new proposal by the Left parliamentary club seeks to transition to a system based on the real market value of the property, effectively introducing a form of cadastral tax.

While owners of a single primary residence may see negligible changes, those holding multiple properties face significantly higher financial burdens. The proposal is designed to curb the use of residential real estate as a capital investment and improve housing accessibility.

Calculating the Tax Burden

Under the proposed model, the tax rate would no longer depend on size but on the property’s valuation. For an apartment worth 500,000 PLN, the annual tax might remain modest at around 100 PLN. However, for a third property, the rate could reach 0.5 percent initially, rising to 1.5 percent in subsequent years, leading to annual payments exceeding 10,000 PLN.

Crucially, the assessment would aggregate all residential properties owned by a taxpayer across the entire country, regardless of which municipality or province the units are located in.

Challenges for Local Governments

Municipalities, which are responsible for assessing and collecting property taxes, have expressed significant concerns regarding this project. The Union of Polish Cities has called for further public consultation, citing a lack of financial and organizational assessment.

Local authorities currently lack the standardized tools and databases necessary to accurately determine real estate values and verify ownership data on a national scale. The project suggests a transition phase using standardized indices before moving to data from the Portal of Data on Housing Turnover (Portal DOM).

Exceptions and Implementation

The proposal includes specific exemptions to encourage investment in energy-efficient buildings and support social housing. While the debate continues, the project remains in the legislative process and is not currently in force.

If passed in its current form, the law is scheduled to take effect on January 1, 2027, following approval by the Sejm, the Senate, and the President. Until then, property taxes continue to be calculated based on existing regulations.