Full Breakdown of Buying Costs and Taxes for Property in Poland

When you purchase a flat in Warsaw you will pay several statutory taxes and fees on top of the purchase price.

VAT vs. PCC – Which Tax Applies?

New‑development (primary market)

• VAT is included in the developer’s price. The rate is 8 % for the first 150 m² of usable area and 23 % on any excess. A parking space sold separately is taxed at 23 %.
• No PCC (2 % civil‑law transaction tax) is due on primary‑market purchases.

Resale (secondary market)

• PCC of 2 % of the market value is payable to the notary.
• VAT does not apply because the seller is a private party.
• First‑time buyers may be exempt from PCC if statutory conditions are met (see § 2 of the 2000 PCC Act). The exemption must be confirmed with the tax office.

Polish PCC Act (2000) – source

Mandatory Fees Beyond Taxes

Data source: NAWROCKI cost_examples, statutory fee tables, period 2024‑2025.

Example Cost Scenarios (Based on NAWROCKI data)

• 800 000 PLN resale flat – PCC 2 % = 16 000 PLN, same additional fees → total ≈ 18 219 PLN.
• 1 200 000 PLN resale flat – PCC 2 % = 24 000 PLN → total ≈ 26 219 PLN.

These figures illustrate that the ancillary cost grows linearly with price because the 2 % PCC dominates the mix.

Mortgage‑Related Costs

The typical mortgage rate in November 2026 is 6 % (NBP reference 3.75 % + typical bank margin 2.25 %). For a 955 000 PLN flat with a 20 % down‑payment (191 000 PLN) the monthly instalment on a 25‑year loan is about 4 922 PLN (equal‑installment calculation). The loan‑to‑value ratio is 80 %.

Source: NAWROCKI mortgage data, rates updated 2026‑11‑01.

Practical Step‑by‑Step Checklist

1. Define budget – include purchase price + 7 % ancillary costs.
2. Check eligibility for PCC exemption (first‑time buyer) with the tax office.
3. Select property – primary market (new development) or secondary market.
4. Secure financing – use our mortgage calculator /kalkulator-kredytowy and confirm rate with a bank.
5. Sign pre‑contract – for new developments, the developer provides a umowa deweloperska.
6. Arrange notary – the notary will collect PCC (if applicable) and calculate notary fee plus 23 % VAT.
7. Pay court fees – 200 PLN for ownership entry, 200 PLN for mortgage entry.
8. Register mortgage – pay the fixed 19 PLN PCC on the mortgage.
9. Finalize transfer – receive the deed, ensure entry in the land register (EKW).
10. Plan post‑purchase costs – property tax (annual), insurance, possible renovation.

Where to Find Local Price Data

• For district‑specific transaction prices see /ceny-transakcyjne/{district} – e.g., Mokotów median primary price 955 128 PLN.
• For new‑development asking prices browse /nowe-mieszkania/{district} or the full catalogue /oferty.

Taxation After Purchase

• Rental income tax – flat‑rate 8.5 % up to 100 000 PLN revenue per year, 12.5 % above (see 1998 Income Tax Act). A tax adviser should be consulted for optimal structuring.

Risks and Professional Advice

• Notary fees are negotiable but cannot exceed the statutory ceiling – verify the final amount before signing.
• VAT on new flats can rise if the developer changes the price; always request a price‑breakdown.
• If you plan to sell within five years, a 19 % PIT may apply unless you use the proceeds for a new primary residence within three years.

For a personalized cost estimate and help navigating the Polish legal framework, contact NAWROCKI Real Estate today.

Contact us

This article is general information, not legal, tax or financial advice. Consult a notary, lawyer, tax adviser or mortgage broker before making a decision.

Sources

• Ustawa z 9 września 2000 r. o podatku od czynności cywilnoprawnych (ISAP)
• Ustawa z 11 marca 2004 r. o podatku od towarów i usług (ISAP)
• Ustawa z 28 lipca 2005 r. o kosztach sądowych w sprawach cywilnych (ISAP)
• Rozporządzenie w sprawie maksymalnych stawek taksy notarialnej (ISAP)
• Ustawa z 20 listopada 1998 r. o zryczałtowanym podatku dochodowym (ISAP)
• NBP — Baza cen nieruchomości mieszkaniowych (ceny ofertowe i transakcyjne, kwartalnie)