POLISH REAL ESTATE TAXATION 1. Acquisition of the

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POLISH REAL ESTATE TAXATION 1. Acquisition of the real estate investment Acquisition of the real estate property VAT is applicable to the following acquisitions: -­‐ purchase of a land to be built on; -­‐ purchase of a building as well as other constructions in any stage of work. VAT exemptions apply for supply of buildings, constructions or parts thereof; the exemption does not apply when: -­‐ the supply is effected within the framework of the first occupation; -­‐ a period exceeding two years has not lapsed before the first occupation and the supply of the building, construction or part thereof. The VAT standard rate is set at 23%. Transfer tax and others acquisition costs The purchase of a real estate property outside the scope of VAT or exempt from VAT is liable to transfer tax at a rate of 2%. The payment will be due within 14 days from the date of the transfer of the ownership (or paid to the notary if needed). If a foreign person is obliged to obtain a permit to purchase real estate, that person must pay a stamp duty. The stamp duty for a permit to purchase: -­‐ real estate; -­‐ shares in a company with its seat in Poland, which owns or is a perpetual usufruct of land. The acquisition of shares in a Polish company is normally subject to 1% transfer tax. 2. Holding the real estate investment Rental activity The net rental activity less deductible expenses is subject to CIT at the standard rate of 19%. The lease of non-­‐residential buildings and space is subject to VAT under the standard rate; the following are exempts from VAT: Autorisation d’établissement du Ministère des Finances luxembourgeois n° 26/12 en tant que Professionnel du
Secteur Financier agréé par la Commission de Surveillance du Secteur Financier luxembourgeoise.
N° R.C.S. Luxembourg B 94364
TVA LU 19788437
ING Luxembourg S.A.
IBAN LU72 0141 3413 6050 0000
BIC CODE : CELLLULL
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18 rue Robert Stümper • L-­‐2557 Luxembourg T +352 26 38 92 40 • F +352 26 38 92 41
www.finimmo.com
-­‐ lease and granting of perpetual usufruct of agricultural land; -­‐ lease and renting of residential immovable property on own account, excluding lease of space residential buildings for purposes other than residential. Distribution of profits The standard withholding tax on dividends distributed by a Polish company to a foreign shareholder is 19%. Dividends received from a foreign entity by a Polish company are subject to CIT at the standard rate; if the Polish company receives dividends by another Polish or EU company, it may benefit from exemption. 3. Selling the real estate investment Sale of a real estate property Incomes derived by an entity on the sale of a real estate property are subject to taxation (19%). Sale of the shares of a real estate oriented company The capital gain derived on the sale of shares in a real estate company is subject to 19% CIT. Under most double tax treaties concluded by Poland, profits realized by the foreign entity after the sale of shares in a Polish company is exempt from taxation in Poland. The present document only has an informative purpose, and constitutes neither a tax advice, nor any part of a contract or an offer. Autorisation d’établissement du Ministère des Finances luxembourgeois n° 26/12 en tant que Professionnel du
Secteur Financier agréé par la Commission de Surveillance du Secteur Financier luxembourgeoise.
N° R.C.S. Luxembourg B 94364
TVA LU 19788437
ING Luxembourg S.A.
IBAN LU72 0141 3413 6050 0000
BIC CODE : CELLLULL
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