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Poland flat tax issues - real estate - 10% tax


Juche 9 | 292
12 Feb 2010  #1
Fo r the love of Pete can anyone finally answer the question of whether or not someone who bought a flat in 2006 will have to pay 10 percent gains tax after selling (assuming some of the money from the sale will be for paying off the home loan)?? Cannot get a stgraight answer from anyone around here......
delphiandomine 83 | 17,531
12 Feb 2010  #2
The best bet would be to ask the tax office to give you a decision about whether or not you'll have to pay it. I wouldn't risk anything else!
cms 9 | 1,272
13 Feb 2010  #3
So a straight answer is yes. If you sell it before 31 Dec 2011 you have to pay 10% on the profit. The loan and related expenses are deductible.

If you reinvest the funds in Polish property its exempt but there is quick paperwork required. Get an accountant to help you with that.
nierozumiem 9 | 118
13 Feb 2010  #4
Juche, the answer has not changed since you last raised the question. There will be a 10% tax on the net proceeds of the sale. Not a 10% tax on the net profit of the sale. This is not a capital gains tax, but a sales tax.

To avoid the tax you can wait until 1.1.2012, or there is the option to re-invest the funds into another property within 2 years. In this case you only need to re-invest the equity that you have in the property, not the full debt + equity that is in the property now.

https://polishforums.com/archives/2005-2009/real-estate/avoiding-tax-selling-flat-38443/

The only answer you can 100% rely on is to petition the tax office in writing (a good accountant can help you with this). You will receive a formal written response from them within a few months
OP Juche 9 | 292
13 Feb 2010  #5
the answer has not changed since you last raised the question

I keep asking becasue I keep getting different answers - even from govt stiffs...:(
nierozumiem 9 | 118
14 Feb 2010  #6
That is why I suggest that you submit a proposal for a written response from the tax office. There is a process in Poland where an individual can submit a petition to the tax office for a documented answer to a tax question. This wriiten response that you receive from the tax office is legaly binding for your specific case. Even in the event that they give you the wrong answer, as long as you have this documented you are covered.

There is also an anonymous infoline that the tax office has in Warsaw. They are very knowledgeable and will provide you with specific information for your case. The number is 0 801 055 055 or (22) 330 0330.

Good Luck


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