There will be no cadastral tax in Poland. The holiday tax being analyzed

The Minister of Finance and the Minister of Development and Technology agree that the introduction of a cadastral tax, that is to say a tax based on the value of real estate, is not currently planned. On the other hand, in the Ministry of Development and Technology, in cooperation with the Ministry of Finance, the issue of the so-called vacant buildings, that is, apartments purchased solely for investment purposes , which are neither inhabited nor rented by the buyer. This information was provided in the answers (of 8 and 9 June 2022) of the two ministers to a parliamentary question.

11% of vacant homes in Poland, investment funds are buying apartments en masse – what is the government planning?

In parliamentary question n°33765 of 25 May 2022, several MPs drew attention to the problems in the housing market. In particular, it was stated that the data collected by the Central Statistical Office during the census carried out in 2021 shows that approximately 11% of apartments in Poland are uninhabited apartments, the so-called empty ones, and according to Eurostat, almost 37% of Polish men and women (in 2020) live in overcrowded apartments. The problem of investment funds buying apartments in bulk from developers, driving up already high apartment prices in Poland, was also highlighted.

Consequently, the deputies wondered about the ideas and actions of the government in this area. The questions related both to possible legal regulations regarding vacant homes and investment funds buying apartments, as well as whether the introduction of a cadastral tax is being considered.

The cadastral tax will not be

Deputy Minister Artur Soboń, on behalf of the Minister of Finance, made it clear that the introduction of a cadastral tax, that is to say a tax based on the value of the property, is not planned.

This was also confirmed on behalf of the Minister of Development and Technology, Deputy Minister Piotr Uściński, who indicated that: The introduction of a universal cadastral tax calculated on the value of real estate in Poland would have major consequences for the current configuration of the housing market and would potentially apply to owners of more than 15.4 million apartments and houses single family. Therefore, the government is not working on the introduction of such a tax. It seems that it would be particularly acute for the poor and the elderly who, for example, own premises in the central districts of the city (often after having been converted into former communal or cooperative premises), but do not have high income. Their apartments are theoretically worth a lot, so the tax would weigh heavily on their family budget.

Investment fund in the housing market in Poland – 0.05% of the housing stock

Deputy Minister Piotr Uściński pointed out that so far the activities of investment funds in Poland in the housing market have mainly consisted of entrusting the construction of apartments directly to a developer or construction company, and then the purpose of these apartments for rent. The current situation, in which funds contract and order the construction of entire buildings, helps to increase the stock and supply of apartments available on the market, and also provides jobs for Polish companies.

However, according to the Minister, this market segment certainly requires detailed monitoring. Currently, the activity of investment funds in the Polish real estate market does not cause any concern from the Ministry of Development and Technology (MRiT), since this phenomenon covers only a very small segment of the housing market ( about 0.05% of the housing stock). In the opinion of the Ministry of Regional Development, however, it would be alarming if the funds were to compete with individual buyers for the purchase of individual apartments. On the one hand, this would reduce the availability of such accommodation for consumers, on the other hand, it would be a factor in increasing their prices. That is why the MRiT is currently analyzing in detail the activity of investment funds in the housing market in Poland. Conclusions drawn up on the basis of the aforementioned elements the analyzes will make it possible to assess the real impact of investment funds on the housing market and will form the basis for taking possible optimal solutions within the aforementioned framework.

Vacant dwellings – analysis in progress

The Ministry of Development and Technology is also analyzing the issue of so-called vacant buildings, together with the Ministry of Finance, competent in the event of a decision to introduce possible tax solutions. MRiT confirms that he sees the problem of so-called vacant buildings, i.e. apartments purchased solely for investment purposes, which are neither inhabited nor rented by the buyer. According to the MRiT, however, it can be assumed that the current number of vacancies does not depend on factors that can be changed with economic instruments. With the current rents on the rental market, not renting your apartment means a fairly significant loss of additional income.

The maintenance of empty apartments results from other reasons, such as the prospect of their occupation, for example by the children of the owner, the poor technical condition of the park or the lack of demand for the rental of these apartments.. This is indirectly confirmed by data from the National Census (NSP), according to which the most empty apartments and houses are in less developed voivodships, such as Małopolskie (14.8%), Podlaskie (14.7%) , Lubelskie and Świętokrzyskie (13 5%). It can therefore be assumed that in most cases these are derelict buildings whose owners have moved to larger urban centers or other buildings of modern standards. Presumably, the problem of abandoned residential buildings is also mainly in rural areas.

According to the Minister of Development and Technology, a more in-depth analysis will only be possible after the publication by the Central Statistics Office of the final NSP data, also in sections allowing the analysis of local markets.

Sources:

– the response of the Minister of Finance of June 8, 2022 to parliamentary interpellation no. 33765 of May 25, 2022.

– the response of the Minister for Development and Technology of June 9, 2022 to parliamentary question no. 33765 of May 25, 2022.

comp. pawel huczko

Leave a Comment