Purchase of real estate and PCC tax

15 kwietnia, 2024 Katarzyna Płowens 0 Komentarze

Purchasing real estate involves incurring additional costs. In addition to the notarial fee, the purchaser of real estate is most often obliged to pay tax on civil law transactions (hereinafter referred to as PCC) or VAT.

Based on the amendment to the Act on Tax on Civil Law Transactions in 2023, an exemption from PCC was granted to natural persons purchasing a residential premises or a single-family house for the first time. At the same time, from the beginning of 2024, an increased PCC rate was introduced – 6% – for the purchase of the sixth and subsequent residential premises. However, it is worth mentioning that the increased PCC rate applies to a specific method of purchasing real estate. The condition for applying the 6% PCC tax on the sale of real estate is the fulfillment of all of the following conditions:

  1. The sale applies only to residential premises,
  2. Sales are subject to VAT (usually on the primary market)
  3. The subject of the agreement is the purchase of the sixth and each subsequent premises,
  4. The purchased residential premises are located in a building or buildings on one plot of land.