A Silesian industrial property owner received a reassessment notice in February 2025. The local tax authority applied new definitional rules introduced by Poland's amended real estate tax legislation, effective 1 January 2025. The reclassification nearly doubled the assessed tax base on two warehouse structures. The client had 30 days to respond before the assessment became final.

Poland's 2025 real estate tax reform introduced new statutory definitions of "building" and "structure" under the ustawa o podatkach i opłatach lokalnych (Local Taxes and Charges Act, ULOL). The revised definitions align more closely with construction law terminology and expand the category of taxable structures. For property owners, the change affects which assets attract a flat annual rate and which are taxed on value – a distinction with significant financial consequences.

This case study walks through the background, the legal strategy our team deployed, and the transferable lessons for any business holding real estate or industrial assets in Poland. The matter involved a manufacturing group with properties across Silesia and Małopolska. Names and precise figures have been anonymised at the client's request.

What changed in the 2025 real estate tax definitions?

The core reform separated the definition of taxable "structures" from the broader construction law framework that had governed assessments for decades. Under the revised ULOL, a structure is now defined by reference to its technical function rather than its classification in the building permit. This matters enormously for industrial assets: pipelines, silos, elevated platforms, and technical installations previously treated as building components became independently taxable structures in 2025.

The practical effect is a wider tax base. A structure is taxed at 2% of its declared value annually. A building, by contrast, is taxed per square metre of usable floor area. For assets with high replacement value but modest floor area – think large storage tanks or transformer stations – reclassification from building to structure can multiply the annual liability several times over. The client's two Silesian warehouses contained integrated conveyor systems that the authority now treated as separate structures worth PLN 4.8m combined.

Three categories of asset drew the most attention from tax authorities in the first wave of 2025 reassessments:

  • Technical installations permanently attached to industrial buildings
  • Elevated storage platforms and mezzanine structures
  • Underground utility networks within property boundaries

Owners who had relied on pre-2025 classification opinions faced immediate exposure. The National Court Register (KRS) records showed the client's Polish subsidiary had held the assets for seven years without a structural revaluation. That gap became a vulnerability once the new definitions applied.

How did we build the challenge strategy?

The client engaged KORDECKI & Partners within two weeks of receiving the reassessment notice. The 30-day objection window left little margin. Our tax team, working alongside the firm's disputes practice, identified three lines of argument: definitional ambiguity in the transitional provisions, incorrect valuation methodology applied by the authority, and failure to issue a prior information request before issuing the assessment.

We secured a suspension of the assessment's enforceability within 14 days of filing the objection – protecting the client from immediate payment obligations while the substantive challenge proceeded. This step is often overlooked. Without suspension, the assessed amount becomes collectible even before the appeal is resolved, forcing companies into costly refund litigation later.

Our team obtained a reversal of approximately PLN 1.1m in disputed tax liability for the Silesian manufacturing client (autumn 2025). The authority accepted our argument that the conveyor systems formed an integral part of the building's load-bearing structure and could not be assessed independently under the new definitions. A parallel valuation report, commissioned from an independent construction engineer, demonstrated that the authority had applied replacement-cost methodology incorrectly, overstating asset value by roughly 35%.

For the Małopolska assets, the outcome was partial. Two installations were confirmed as independently taxable structures under the 2025 rules. However, the declared value was reduced by PLN 620,000 after the corrected valuation was accepted. The net saving across both regions exceeded PLN 1.7m in the first assessment year. For context on how digital compliance obligations interact with tax exposure of this kind, see our analysis of what KSeF means for your business in France.

What are the transferable lessons for property-holding businesses?

The 2025 reassessments revealed a consistent pattern: businesses that had not reviewed their asset classifications since the original building permits were most exposed. Polish tax law does not require authorities to notify owners proactively when definitional changes affect existing assets. The obligation to declare and pay correctly rests with the taxpayer. Ignorance of the new definitions is not a defence, and late corrections attract interest at the statutory rate – currently 8% per annum.

Three practical steps reduce exposure materially. First, commission a technical audit of all assets held in Poland to identify which installations may now qualify as independently taxable structures. Second, obtain a written classification opinion from a tax advisor before the next annual declaration deadline (31 January each year). Third, if the authority issues a reassessment, file an objection immediately – do not wait to assess the merits. The suspension mechanism only applies if the objection is filed within the statutory window.

Transfer pricing obligations add a further layer of complexity for groups with intercompany property arrangements. Where a Polish subsidiary holds assets used by related entities, the arm's-length value of those assets may affect both the real estate tax base and the transfer pricing documentation required under Polish tax law. Our team has handled several matters where tax authorities examined both issues simultaneously. For deeper analysis of Pillar Two interactions with Polish subsidiary structures, see our guide on Pillar Two practical steps for Polish subsidiaries.

The checklist below captures what property-holding businesses should prepare before the next assessment cycle:

  • Updated technical inventory of all structures and installations on each plot
  • Classification opinion from a qualified tax advisor or construction expert
  • Valuation report using the correct methodology (replacement cost vs. market value)
  • Review of intercompany agreements where assets are shared across group entities
  • Calendar reminder for the 31 January declaration deadline

Family foundations holding real estate face an additional consideration. Under Polish tax law, assets transferred to a family foundation retain their original classification for real estate tax purposes. However, the 2025 definitional changes apply equally to foundation-held assets. Foundations that received industrial properties before 2025 should treat the reclassification risk as equally pressing. For contested assessments involving foundation-held assets, our disputes team's experience is directly relevant – see the overview of our disputes practice in Poland.

The IP Box regime and other tax incentives do not interact directly with real estate tax. However, businesses that rely on IP Box relief for income from intangible assets embedded in production facilities should ensure that the physical assets supporting those activities are correctly classified. A mismatch between the IP Box filing and the real estate tax declaration can attract scrutiny from the Krajowa Administracja Skarbowa (National Revenue Administration, KAS) during a combined audit.

The specific situation of your company requires tailored analysis. Reclassification under the 2025 definitions can produce irreversible financial consequences if the annual declaration is filed incorrectly and the correction window passes.

If your business holds industrial or commercial real estate in Poland and has not reviewed its asset classifications since 1 January 2025, contact our team for a structured assessment: info@kordeckipartners.com.

Frequently asked questions

Q: Does the 2025 reform affect residential property owners, or only commercial and industrial assets?

A: The definitional changes under the revised Local Taxes and Charges Act primarily affect assets with technical installations – industrial buildings, warehouses, and commercial properties with embedded infrastructure. Standard residential buildings are unlikely to be reclassified. However, mixed-use properties with technical components should be reviewed individually by a qualified tax advisor.

Q: How long does an objection to a real estate tax reassessment typically take to resolve?

A: The first-instance authority must issue a decision within one month of receiving a complete objection file. Complex valuation disputes can extend to two months. If the objection is rejected, the taxpayer has 14 days to appeal to the administrative court. Full resolution through the administrative courts – the Wojewódzki Sąd Administracyjny (Regional Administrative Court, WSA) and, if further appealed, the Naczelny Sąd Administracyjny (Supreme Administrative Court, NSA) – can take two to four years. Securing a suspension of enforceability at the outset is therefore important regardless of the expected timeline.

Q: Can a business correct a previous real estate tax declaration without triggering a penalty?

A: Polish tax law permits voluntary correction of declarations before the authority opens a formal audit or issues an assessment. A corrected declaration filed voluntarily attracts interest on any underpayment but avoids the additional penalty surcharge. Once an audit has been formally opened, the correction right is suspended. Acting promptly – ideally before the 31 January annual deadline – preserves the most favourable correction position.

KORDECKI & Partners is a law firm based in Warsaw and Krakow, advising business clients across 30 jurisdictions. Our team combines expertise in Polish and international law with a practical approach to real estate tax advisory, tax dispute resolution, and compliance structuring. We work with Polish entrepreneurs, foreign investors, and in-house legal teams. To discuss your situation, contact info@kordeckipartners.com.

Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. KORDECKI & Partners assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@kordeckipartners.com.