Property Tax 2025: New Definitions of Buildings and Structures
Changes to property tax in 2025 are being introduced by an amendment to the Local Taxes and Fees Act . The new regulations provide autonomous definitions of buildings and structures, independent of construction law. This will make it easier for taxpayers to determine what is subject to taxation.
How do we define these concepts now?
- A building is a structure permanently attached to the ground, with foundations and a roof, and spatially separated by building partitions. This definition excludes structures used for storing bulk, liquid, and gaseous materials, such as various types of tanks.
- A structure is a structure that is not a building, as listed in Annex 4 to the Act, such as wind power plants, nuclear power plants, and/or photovoltaic power plants, biogas plants, energy storage facilities, boilers, industrial furnaces, and machinery foundations. The regulations also address the taxation of structures located within a building.
It is also worth paying attention to the new deadlines described in the Act:
- A permanent connection to the ground ensures the structure's stability and ability to withstand external factors. This means that temporary structures are more likely to be considered buildings.
- A technical-utility whole is a set of elements necessary to achieve an economic goal, interconnected in such a way that no single element can achieve this goal on its own.
Find out more: How much tax will you pay on real estate purchases?
New property tax – garages
Regardless of legal separation, garages in residential buildings will be subject to a lower property tax rate starting in 2025. What's changing? Previously, such a garage was treated as a separate property and taxed at a higher rate.
Property Tax 2025 – Containers
From 2025, the key taxation criterion for containers is their permanent attachment to the land . A container that can be easily moved is not considered a structure. However, a container with permanent foundations or with water, sewage, and electrical installations may be subject to taxation.
New property tax – photovoltaic installations
The 2025 property tax changes also apply to photovoltaic installations. Here, too, the taxation criterion is their permanent attachment to land, buildings, or structures.
It looks like this:
- photovoltaic installations on the roof of a building are taxed at the rate for residential buildings;
- Freestanding photovoltaic installations are taxed according to the rules for buildings.
The exception are micro-installations, which serve only household needs. As such, they typically do not generate a tax liability.
How much is property tax in 2025?
The property tax rate in 2025 depends on the maximum rates set by the Minister of Finance. They are 2.7% higher than in 2024. They are as follows:
- for residential buildings: PLN 1.19 per 1 m² of living space;
- for buildings or parts thereof related to running a business: PLN 34.00 per 1 m² of usable area;
- for land related to running a business: PLN 1.37 per 1 m² of area;
- for other land: PLN 0.57 per 1 m² of area;
- for buildings used for conducting business activities in the field of trade in certified seeds: PLN 13.47 per 1 m² of usable area.
See also: Usable and residential area. How to calculate a plot's usable area?
How to calculate property tax after the changes in 2025?
To calculate your property tax, you can use the maximum rates set by the Minister of Finance. This will be the maximum amount you'll pay. Keep in mind that the actual tax amount depends on the decision of the municipal council. To obtain an accurate result, check this information with the relevant municipal or city office.
When is property tax due in 2025?
The standard deadline for submitting declarations is January 31, 2025.
The extended deadline is valid until March 31, 2025. To take advantage of it, you must meet the following criteria:
- submitting a written notification to the tax authority by 31 January 2025;
- independent payment of monthly property tax installments for January, February and March;
- the amount of each installment must correspond to the average monthly tax amount for 2024.
If you do not meet these conditions, you will lose your right to benefit from the extended deadline.
New property tax in 2025 – how does it affect entrepreneurs?
New definitions of buildings and structures may change the classification of your properties. Carefully analyze your assets to prepare a secure 2025 tax return.
We recommend:
- verification of all fixed assets in terms of new definitions,
- inventory of owned properties,
- monitoring the practice of tax authorities in the field of taxation of objects under the new rules,
- using the services of an appraiser who will determine whether the objects belong to the appropriate categories,
- audit of the correct qualification of expenditure on fixed assets.
The 2025 property tax changes are intended to simplify regulations, but they still require attention and adaptation to the new requirements. Seek expert help if necessary.
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