How much is Capital Gains Tax (CGT) in Poland and how does it work?
• The tax laws related to Capital Gains Tax (CGT) on the sale of real property were changed at the beginning of 2007. Main points of old regime (for purchases completed before January 1st 2007): • – If you hold your property for 5 years you will not be subject to CGT. (It is calculated on a yearly basis, rather than monthly. For example, if you bought your property in May 2004, then the five year period starts from January 2005. No CGT is payable if you sell from January 2010 onwards.) • – If you sell within 5 years, then you are subject to CGT at 10% of the sales price. However, if within two weeks of selling the property, you declare your intention to reinvest the proceeds in Poland (contacting ministry and tax office), then you are not subject to the tax. The reinvestment must occur within a period of 2 years, otherwise you will have to pay the CGT. Main points of new regime (for purchases completed after January 1st 2007): • – Five year rule abolished. • – Only sellers who have bee
