Poland moves on property tax reform — third homes targeted

29 March 2026 Poland Radar 0 Comments

Poland property tax reform would tax owners by value, not area, hitting owners of three or more homes; political hurdles and Portal DOM details.

The Sejm received a controversial bill on March 20, 2026 that could change how Poland taxes real estate. The Poland property tax reform would tax owners by value, not by floor area.

Table of Contents

Poland property tax reform — what the bill proposes

Lewica MPs submitted a private members’ bill that alters the tax basis for properties. Consequently, the measure targets owners with three or more residential units. Moreover, the bill would keep a near-zero change for one or two properties. Specifically, it sets an annual rate of 0.02% of value for the first and second property. However, the draft caps that rate so taxpayers do not pay more than under the current area-based system. Therefore, the bite begins at the third property. It would start at 0.5% of value in year one. Then it would rise by 0.1 percentage points each year. Ultimately, the rate would reach 1.5% after ten years. For example, a third flat worth PLN 500,000 would bear PLN 2,500 in tax in year one. In ten years, the same flat would cost PLN 7,500 a year.

Valuation method, Portal DOM and local powers

Poland lacked a national valuation database for years. Consequently, lawmakers could not reasonably apply a value tax. Moreover, the new Portal DOM law from November 2025 aims to change that. The central database will collect real transaction prices nationwide. In addition, the government agency Ubezpieczeniowy Fundusz Gwarancyjny will run the portal. The portal plans to go live on April 2, 2027. Meanwhile, the draft uses an interim method. Namely, it relies on a regional reconstruction index set by the voivode. For Warsaw, the index for Oct 2025–Mar 2026 equalled PLN 10,946.93 per square metre. However, municipalities would also get correction tools. Therefore, a council could multiply the base between 0.2 and 2.0. They may adjust for age, location, and technical condition.

Politics, veto threat and timeline

The government insists it did not author the bill. Prime Minister Donald Tusk and Finance Minister Andrzej Domański both said the cabinet holds no mandate for a value tax. Consequently, the measure lacks coalition backing today. Moreover, major parties PiS and Konfederacja oppose it. In addition, PSL has raised criticism. Therefore, the draft lacks a clear parliamentary majority. Furthermore, President Karol Nawrocki publicly promised to veto tax hikes. The bill lists a start date of January 1, 2027. However, without new alliances it probably stalls in committee.

💡 GOOD TO KNOW: If you own one or two flats in Poland, this bill would not raise your tax under its present terms. However, owners of a third property could face a value-based charge. Therefore, check how your properties appear in public records and who holds legal title. In Poland, tax counts per individual taxpayer, not per household. Moreover, shared family ownership can lower exposure if titles list several people. Also, confirm whether you have a PESEL number (the national ID used for many tax and registry processes). Finally, consult a local tax adviser if you hold multiple units. Remember that Polish institutions such as ZUS (social security) and NFZ (public health fund) use different registration rules than property taxes.

For expats, the change matters beyond wallets. Consequently, it could alter rental yields in Warsaw and other big cities. Moreover, municipalities would gain new revenue. Therefore, local budgets might grow, and councils could shift spending priorities. In addition, the measure may influence investment choices. For instance, landlords might sell older flats or pass costs to tenants. Ultimately, watch parliamentary debates closely. Even if this draft fails, politicians may return with new versions. In that case, thresholds, rates, or exemptions could change.

Source: Read original article