Real Estate Tax in Poland: Building and Structure Rules for Businesses

Real estate tax is a local tax payable in Poland on land, buildings and certain structures used in business activity. For companies, the central issue is not only ownership but also the correct legal classification of each asset. A warehouse, production hall, tank, internal installation or technical foundation may be taxed differently, which directly affects annual operating costs and the risk of a property tax audit in Poland.

The rules changed materially from 1 January 2025. The reform introduced new statutory definitions of buildings and structures for local tax purposes, replacing the previous references to definitions under construction law. However, classification disputes remain likely, particularly in industrial, logistics, energy and manufacturing projects. Lawyersinpoland.com by Kopeć & Zaborowski supports businesses in assessing tax exposure connected with commercial real estate, investments and compliance obligations.

Real estate tax for businesses in Poland: what is taxable?

Under the Act of 12 January 1991 on Local Taxes and Fees, real estate tax may apply to:

• land;
• buildings or parts of buildings;
• structures or parts of structures connected with business activity.

The municipality sets the applicable rates for land and buildings within annually published statutory limits. Therefore, the tax burden depends on the property’s location, area, function and, for structures, value. Structures connected with business activity are subject to a statutory 2% rate. The relevant municipal council resolution should always be checked for the tax year concerned.

For businesses, the connection with business activity is particularly important. Land, buildings and structures held by an entrepreneur are generally treated as related to business activity, unless a statutory exception applies. This may result in higher rates than those applicable to residential property or land not used commercially.

The 2025 property tax reform in Poland: new building and structure definitions

The 2025 reform, introduced by the Act of 19 November 2024, replaced the previous references to construction-law definitions with autonomous tax definitions. The reform applies from 1 January 2025 and is particularly relevant to taxpayers owning warehouses, production facilities, pipelines, energy infrastructure, silos and technical installations. [1][2]

Building vs structure definitions for tax purposes in Poland

A building is generally an object erected as a result of construction works, together with installations enabling it to be used in accordance with its purpose, that is permanently attached to the ground, separated from space by building partitions, and has foundations and a roof. The definition excludes an object in which bulk, liquid or gaseous materials are or may be stored where capacity is the primary technical parameter determining its intended purpose.

A structure includes, in particular, an object listed in Annex No. 4 to the Act on Local Taxes and Fees that is not a building, together with installations enabling its use in accordance with its purpose. The statutory definition also covers specified construction devices, construction parts of certain technical equipment and foundations for machinery and technical equipment. The statutory list covers numerous technical and industrial objects, including certain networks, tanks, masts, foundations for machinery and other infrastructure.

The distinction is commercially significant. Buildings are generally taxed according to usable floor area. Structures connected with business activity are generally taxed at 2% of their value determined under the statutory rules on the tax base calculation. A misclassification can therefore lead to substantial arrears, interest and disputes with the municipal tax authority.

Three classification exceptions requiring careful review

Three issues should be assessed separately in each investment or property tax review:

1. An object with a roof and foundations is not automatically a building. It must also meet the remaining statutory conditions. In particular, an object used or capable of being used to store bulk, liquid or gaseous materials may be excluded from the building definition where capacity is its primary technical parameter.
2. Technical equipment is not automatically taxable as a structure. The construction part of certain equipment may be taxable only where it falls within the statutory definition, including the relevant categories in Annex No. 4. Construction devices may also be taxable where they meet the statutory criteria.
3. Installations may follow the legal classification of the principal object. Installations enabling a building or structure to be used in accordance with its purpose may form part of that object, while independent infrastructure may constitute a separately taxable structure.

These distinctions are fact-dependent. Technical documentation, fixed asset registers, construction permits, lease agreements and the actual use of the asset may all be relevant evidence in a tax proceeding.

Property tax rates for commercial real estate in 2025

For 2025, the national maximum rates include PLN 34.00 per square metre for buildings connected with business activity and PLN 1.38 per square metre for land connected with business activity. Structures used in business activity are generally subject to a statutory 2% rate calculated on their value. [3]

These are maximum rates for land and buildings, not automatically applicable rates. Municipalities may adopt lower rates. A company operating facilities in several Polish municipalities should therefore verify each local tax resolution separately.

Property tax on warehouses and production halls

Warehouses and production halls are usually taxed as buildings based on usable floor area. However, modern industrial sites often include assets that require separate treatment, such as loading infrastructure, storage tanks, conveyor systems, internal utility networks, foundations for production lines or energy installations.

The business risk is highest where a taxpayer treats all components as part of a building taxed on floor area, while the municipality considers certain components separately taxable structures. The reverse situation may also occur, resulting in overpayment. A proper asset-by-asset review is particularly important before filing the annual declaration and during acquisitions, restructuring or expansion projects.

Property tax returns of foreign companies in Poland: filing and payment duties

Foreign companies conducting business in Poland may become real estate taxpayers if they own, possess or otherwise hold taxable property under circumstances specified in the Act. The tax position depends on the legal title and factual use of the property, not on the company’s country of incorporation.

Legal persons and organisational units, including companies without legal personality, generally submit the DN-1 real estate tax declaration by 31 January of the relevant tax year. The tax is generally paid in monthly instalments by the 15th day of each month, with the January instalment payable by 31 January. The exact obligations follow Article 6(9) of the Act on Local Taxes and Fees. [1]

For 2025 only, taxpayers affected by the definitional reform could submit their declaration by 31 March 2025, provided that they notified the competent municipality in writing by 31 January 2025. This mechanism did not remove the obligation to pay monthly instalments for January, February and March 2025 under the transitional rules. [2]

Property tax audits in Poland: risk management priorities

A municipal authority may verify declarations, request documents, initiate tax proceedings and determine tax arrears. If underpayment is identified, the company may face tax arrears and statutory interest. Depending on the circumstances, inaccurate declarations may also create fiscal penal risk under the Fiscal Penal Code.

Effective risk management usually includes:

• mapping taxable land, buildings and technical infrastructure;
• reconciling tax declarations with fixed asset registers and accounting data;
• reviewing technical and construction documentation;
• checking municipal rate resolutions and available exemptions;
• documenting the legal rationale for the classification of disputed assets.

This is informational material, not legal advice. For a fact-specific review of Polish real estate tax exposure, asset classification or an ongoing audit, contact us.

FAQ – Real Estate Tax in Poland

Is real estate tax payable by every company owning property in Poland?

Generally, companies owning taxable land, buildings or business-related structures are liable. The precise liability depends on the legal title, property type and applicable statutory exemptions.

How are commercial buildings taxed in Poland?

Commercial buildings are generally taxed according to usable floor area. The rate is set by the relevant municipality, subject to the national maximum rate.

How are structures taxed for Polish real estate tax purposes?

Structures connected with business activity are generally taxed at 2% of their value determined under the rules in Article 4 of the Act on Local Taxes and Fees.

Do the 2025 rules affect warehouses and production halls?

Yes. Warehouses and halls remain commonly taxable as buildings, but installations, machinery foundations and technical infrastructure should be reviewed under the new definitions and Annex No. 4.

When must a foreign company file a Polish real estate tax declaration?

Legal persons and organisational units, including companies without legal personality, generally file the DN-1 declaration by 31 January of each tax year, provided they are taxpayers under the Act on Local Taxes and Fees.

Can a municipality challenge a company’s property classification?

Yes. A municipality may verify the declaration and initiate proceedings if it considers that an asset has been incorrectly classified or omitted from the tax base.

Bibliography

[1] Act of 12 January 1991 on Local Taxes and Fees, consolidated text: Journal of Laws of 2025, item 707, as amended.

[2] Act of 19 November 2024 amending the Agricultural Tax Act, the Act on Local Taxes and Fees, the Forest Tax Act and the Stamp Duty Act, Journal of Laws of 2024, item 1757.

[3] Notice of the Minister of Finance of 25 July 2024 on the upper limits of amount rates of local taxes and fees for 2025, Monitor Polski of 2024, item 716.

[4] Act of 7 July 1994 – Construction Law, consolidated text: Journal of Laws of 2025, item 418, as amended.