Poland V.A.T. and Other Taxes

Inheritance / Gift Tax in Poland

  • In Poland, there is an inheritance tax and a tax on gifts.
  • For a Polish resident, the tax liability is on assets both in Poland and outside.
  • For a foreign resident, the tax liability is in respect of assets that are located in Poland.
  • When either the testator / the donor of the asset or the recipient / heir is not a Polish resident, there is an exemption from the payment of tax.
  • The percentage of tax payable is between 3% and 20%.
  • The percentage depends on the relationship of the heir / recipient of the gift to the testator / donor and the value of the asset.
  • As a general rule, the closer the relationship, for instance that of a spouse, son or daughter, the lower the rate of tax payable.
  • There is a basic sum that is exempt from tax, depending on the type of asset.
  • There is an exemption for a group of assets such as antique art, farms and more, subject to certain conditions.
  • The tax liability is imposed on the heir / recipient of the gift. The donor of a gift is also liable for tax.

Real Estate Taxes in Poland

  • Real estate tax applies to all sectors, including individuals and public bodies.
  • The tax is levied on non-agricultural buildings and plots.
  • Some local authorities allow a reduction of up to 50%.

Agricultural and Forestry Tax in Poland

  • Agricultural tax - The tax imposed takes three main factors into consideration:
    The area of the land.
    The type of agricultural crops
    The area in which the land is located.
  • Forestry tax - Imposed according to similar principles while here the type of tree and its value is also examined.