Tax on the sale of a flat

Are you selling a flat or part of one and wondering whether you have to pay tax on the sale? For many people this topic may seem complicated and somewhat unclear. In this article we therefore explain the key aspects of this obligation. We will also explain who is exempt from the obligation to pay tax on the sale of a flat.

What documents are needed to determine the amount of the tax on the gain?

To settle the tax on the sale of a flat in Poland correctly, you need the right documents. The most important one is the notarial deed (akt notarialny), which confirms the sale of the property. A decisive factor is the date on which the purchase agreement for the flat was concluded, which affects the tax rate. Another key document is one confirming the value of the property, for example an expert valuation or prices from the primary or secondary market. A statement of tax-deductible costs (koszty uzyskania przychodu) is also needed, in which you can include expenses incurred on renovation.

Who has to pay tax on the sale of a property?

The sale of a property is taxed when the owner decides to dispose of it before 5 years have passed, counted from the end of the calendar year in which it was acquired (not from the date of purchase). In practice, this means that the tax on the gain applies mainly to cases where the property is sold relatively soon after it was bought.

The tax on the sale of a property is currently 19%. Remember that it is calculated on the difference between the sale amount and the purchase amount of the flat, not on its value. Under Polish tax law, the tax must be paid by 30 April of the year following the one in which the transaction disposing of the property in Katowice was carried out. To meet this obligation, a PIT-39 return must be filed with the tax office competent for the taxpayer's place of residence.

When do you not have to pay tax on the sale of a flat?

It is worth knowing that there are certain situations that allow exemption from the obligation to pay the tax. So who can avoid the tax obligation? These are people who:

• hold off selling the flat until five years have passed from the end of the calendar year in which it was acquired;
• within 3 years of selling the flat, spend all of the proceeds on buying a new property, repaying a loan taken out for housing purposes together with interest, or extending, converting or renovating their own residential building.

Summary

Tax on the sale of a flat is an important matter for people planning to dispose of a property. It is worth remembering the above rules and the documents needed to settle the tax. If you are looking for an estate agent in Katowice or need support in the process of selling a flat, contact me. As a professional, I am here to help and advise on these matters.