Currently, the acquisition of residential premises or a detached house on the secondary market of real estate is accompanied by an obligation for the new owner to pay the TCLT in the amount of 2% of the transaction constituting the subject of the legal transaction. Pursuant to the content of the amended art. 9 item 17 of the Act of 9 September 2000 on tax on civil law transactions (Journal of Laws 2000 No. 86 item 959) (hereinafter: ‘the TCLT Act’) in connection with the Act of 26 May 2023. on amendments to the Act on Municipal Self-Government, the Act on Social Forms of Housing Development, the Act on Real Estate Management, the Act on Tax on Civil Law Actions and Certain Other Acts (Journal of Laws 2023 item 1463) (hereinafter: ‘the Act’), the above-described tax obligation becomes obsolete as of 31 August 2023.
In practice, this means that after the amendment, individuals interested in purchasing their first property on the secondary market of real estate are not be obliged to pay the TCLT (subject criterion).
According to the content of the amended art. 9 item 17 of the TCLT Act, the following legal transactions on the real estate secondary market are exempted from the obligation to pay the TCLT (subject criterion):
(i) sale, the subject of which is the ownership right to a residential premises constituting a separate property,
(ii) ownership of a single-family residential building,
(iii) co-operative ownership right to premises concerning residential premises or a detached house.
*An exception to the described rule is that the potential buyer holds a max. 50% share in the above-described rights to real estate acquired by inheritance, which also entitles the buyer to benefit from the tax exemption.
8 September 2023
