Housing Tax Relief – Upcoming Restrictions
The Polish Ministerstwo Finansów (Ministry of Finance) is planning changes to the rules governing housing tax relief.
According to the draft proposal, the relief will apply only if the purchase of a new apartment or house genuinely satisfies the taxpayer’s own housing needs.
In practice, this means that if a person already owns another residential property, they may lose the right to the relief when purchasing an additional one.
What Does This Mean for Taxpayers?
The new regulations may result in individuals who already own a property (for example, inherited or previously purchased) being unable to benefit from the relief—even if their current home does not meet their actual needs.
For example:
- A family wishing to exchange a smaller apartment for a larger one,
- A person who inherited a property in poor technical condition,
- A young married couple seeking a house closer to school or work,
— may be denied the relief simply because they formally own another residential property.
Why Does This Raise Concerns?
The draft legislation does not take into account that owning a property does not always mean that it satisfies the taxpayer’s housing needs.
For many individuals, a second property may be:
- a very small apartment,
- co-ownership of a property,
- or a property undergoing renovation and not suitable for living.
The requirement of “not owning another residential property” could therefore, in practice, exclude a large group of taxpayers from the relief—even if they genuinely intend to improve their living conditions.
Summary
The proposed changes to housing tax relief may significantly affect ordinary taxpayers who wish to replace their current home with one better suited to their life circumstances.
Under the new rules, taxpayers may effectively be required to dispose of ownership rights to their existing residential property as a condition for applying the relief.
Planned Effective Date
The amended regulations are scheduled to enter into force on January 1, 2026.