Businesses — including real estate developers — may soon face property tax hikes of up to 30 times for keeping residential units vacant. In Katowice, city authorities have already begun issuing notices to companies whose apartments have remained unoccupied for months, reclassifying them under a commercial tax rate. For municipalities, this is both a new revenue source and a strategic tool to push developers to release inventory. For investors, it could mean hundreds of thousands of złotys in additional annual costs.
The legal basis lies in Poland’s existing property tax system, which differentiates tax rates depending on the use of the unit. In 2025, the maximum residential rate is PLN 1.19 per square meter, while the commercial rate reaches PLN 34 per square meter. The difference is dramatic: an apartment that is actually used for housing may cost just PLN 60 per year, whereas a similar but vacant unit can cost up to PLN 1,700 annually.
This gap has prompted some cities to reclassify vacant apartments as “used for commercial purposes”, triggering the higher rate.
When does a “vacant apartment” become a commercial property?
For years, the definition has been contested. Entrepreneurs renting apartments long term for housing purposes were sometimes wrongly taxed at the commercial rate. In October 2024, the Supreme Administrative Court clarified that what matters is actual use — not the owner’s business status.
- If the unit fulfills residential needs, including long-term rental — the residential rate applies.
- If the unit is vacant, held for speculation, or used in short-term rental or other non-residential ways, municipalities may classify it as commercial — and impose the higher rate.
Following this ruling, some local governments began acting aggressively.
- Katowice is already sending near-30× tax increases to owners of vacant units.
- Kraków has adopted a policy framework enabling similar action (implementation pending).
Some municipalities are openly considering retroactive taxation — even up to five years back.
Financial impact — significant at scale, not per unit
Example for a 50 m² apartment in Warsaw:
- Residential rate (PLN 1.19/m²): ~PLN 60 per year
- Commercial rate (PLN 34/m²): ~PLN 1,700 per year
Difference: ~PLN 1,640/year or ~PLN 150/month
Individually, this will not force a developer to cut prices — especially when selling units for PLN 700,000+.
However, at scale:
- 100 vacant apartments = ~PLN 164,000/year extra cost
- If taxed retroactively for five years → PLN 800,000–1,000,000
That is a cost level worth legally contesting — and it will be.
Likely impact? Strategy shift — not price cuts
Housing prices are unlikely to fall because of this tactic alone.
What is more likely:
✔ developers will stage projects more cautiously
✔ unsold units may be moved into long-term rental to retain residential tax status
✔ smaller investors are most vulnerable — limited legal & financial flexibility
In summary:
The crackdown on vacant units may not lower home prices, but it will influence developer behavior, encourage faster sales or rentals, and ignite legal disputes over classification. A true market shock would come only from a nationwide real estate (cadastral) tax, not from selective reclassification of vacant units.
