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Selling a property after 5 years - tax question on Polish property


dmm  
4 Nov 2008 /  #1
If you sell Polish property after 5 years am i right in saying you do not need to pay Tax to the Polish tax man (if made profit) but you would still have to pay CGt to HMIR if you are UK resident.

Thanks
nierozumiem  9 | 118  
5 Nov 2008 /  #2
Property purchased prior to 2007 and held for a full 5 calendar years is not subject to any Polish capital gains tax. Property held for less than 5 full calendar years is subject to a 10% flat tax on the net proceeds of the sale. This is not a true CGT, it is 10% of the proceeds, regardless of profit.

There are ways to avoid the tax by re-investing the proceeds in Poland. Consult a lawyer before selling.

Property purchased from January 1, 2007 is subject to a 19% CGT on profit. This can be avoided if the property is used as your registered primary residence for 1 year (bought in 2007) or 2 years (bought Jan 1, 2008 forward)

UK Resident - I believe you are correct. If you are tax resident in the UK, you are taxed on your global income. Any taxes paid to Poland should offset the UK tax.

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