Property Tax Hike for 2025: What Homeowners and Apartment Owners Can Expect

REAL ESTATEProperty Tax Hike for 2025: What Homeowners and Apartment Owners Can Expect

Only at the end of this year will millions of homeowners and apartment owners receive a letter from their local government informing them about the amount of property tax for 2025. However, it is already known what they can expect. The Minister of Finance has disclosed the maximum rates, which could be about 3% higher than this year’s rates. Increases in some municipalities could be even higher.

An announcement has just appeared in the Polish Monitor from the Minister of Finance “on the upper limits of flat-rate taxes and local fees for 2025”. For example, in the case of residential buildings, the maximum property tax rate will rise from PLN 1.15 to PLN 1.19, while for land under such buildings – from PLN 0.71 to PLN 0.73 per square meter.

This is rather symbolic increase compared to this year’s increase, which, let’s remember, reaches up to 15-16%. It is the result of high inflation, as it is significantly lower this year, so the allowed “valorisation” of property tax will be only around 3%. For the owner of a 200-square-meter house located on a plot of a thousand square meters, this may mean the need to pay the municipality a property tax of PLN 968, or PLN 28 more than this year.

“But we also have good news. A much lower property tax will pay next year’s part of garage place owners,” said Marek Wielgo, an expert at GetHome. He explained that the current tax rate depends on the legal status of the garage. If it is the subject of separate property, it is taxed at the rate applicable to “other” buildings – in 2024 it does not exceed PLN 11.17 per square meter. If, however, the parking space in the garage is associated with the flat, it is taxed at the same rate as the flat. So in the first case the tax rate can be ten times higher.

“Next year, the same tax rate as for apartments, namely PLN 1.19 per square meter, will cover all garage spaces, regardless of their legal status,” – informs Marek Wielgo. He adds that this is the result of last year’s verdict of the Constitutional Tribunal. The Tribunal questioned the application of differentiated property tax rates, which garage owners in multi-family buildings must pay.

“The real estate tax is one of the so-called local taxes, which means that it is a source of income for municipalities, not the state budget. Therefore, it is the municipalities that have the final say on the amount of rates. The only restriction is that they are not allowed to apply higher rates than those announced by the Minister of Finance. However, most municipalities raise them to the maximum limit,” emphasizes the expert of GetHome.

Will it be the same in 2025? In the coming months, council members will pass resolutions on the amount of rates. Some cities, where they are currently lower than the maximum, could see increases higher than the assumed 3%. For example, in Kielce, theoretically, the increase could be as much as 44%.

“Municipalities need more and more money to meet growing needs. A simple way to patch up finances is to increase the tax,” admits the expert at GetHome.

Source: https://ceo.com.pl/podwyzki-podatku-od-nieruchomosci-w-2025-roku-czego-moga-sie-spodziewac-wlasciciele-domow-i-mieszkan-14063

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