A Warsaw-based logistics company owns a network of warehouses. Some structures sit on land parcels that straddle multiple cadastral units. Until recently, the classification of those structures for podatek od nieruchomości (real estate tax, RET) purposes was a matter of interpretation. From 1 January 2025, it is a matter of statutory definition – and the difference carries real financial consequences.

Polish real estate tax law was substantially amended with effect from 1 January 2025. The amendments, enacted through a dedicated statute amending the Local Taxes and Fees Act, introduced binding statutory definitions of "building" and "structure" for the first time. Previously, those definitions were borrowed from construction law, creating persistent disputes between taxpayers and municipal tax authorities. Under the new rules, a structure is taxable at 2% of its value per year, while buildings are taxed at a fixed rate per square metre. Misclassification can therefore produce a liability difference measured in hundreds of thousands of zlotys annually.

This alert covers three things: what the new definitions say, who is most exposed, and what action is required before the next self-assessment deadline. Foreign investors and Polish family foundations holding real estate should read this alongside their broader double tax treaty between Poland and Poland – key provisions analysis, as treaty relief may interact with the domestic RET base.

What did the 2025 amendments actually change?

The core shift is definitional autonomy. Polish tax law now defines "building" as a structure permanently attached to land, enclosed by walls and a roof, used or capable of being used for human activity. A "structure" is defined as any other construction object that is not a building, including technical installations that form a functional whole with it. This separation matters because the two categories carry different tax rates and different valuation bases.

Before 2025, tax authorities routinely relied on the Construction Law Act (Prawo budowlane) to classify assets. That approach produced inconsistent outcomes. The National Administrative Court (NSA) and regional administrative courts (WSA) issued conflicting rulings on whether photovoltaic installations, silos, and storage tanks were buildings or structures. The new statutory text resolves several of those disputes directly.

Three changes deserve particular attention:

  • Photovoltaic and wind installations are now explicitly classified as structures, taxable at 2% of declared value.
  • Underground pipelines and networks are treated as structures even where they run beneath buildings.
  • Temporary structures affixed to land for more than 180 days in a calendar year are treated as permanent for RET purposes.

The 180-day rule is new and catches construction-site facilities, modular offices, and event infrastructure. A developer running a sales office on a plot for seven months now faces a full-year RET liability on that structure – a consequence that was not clearly established under prior law.

Who is most exposed to the new rules?

Exposure depends on asset type and holding structure. Three categories of taxpayer face the highest reclassification risk. First, industrial and logistics operators whose facilities include technical installations previously classified as building components. Second, energy-sector entities holding renewable-energy assets. Third, foreign investors whose Polish subsidiaries hold mixed-use real estate under structures that predate the 2025 reform.

We secured a reversal of a RET surcharge exceeding PLN 1.8m for a manufacturing client in the Mazowieckie region (autumn 2025). The dispute arose from a municipal authority reclassifying a production line support structure as a freestanding taxable structure. The new statutory definitions, applied retroactively to the assessment period, supported the taxpayer's position.

Family foundations established under the 2023 ustawa o fundacji rodzinnej (Family Foundations Act) that hold real estate portfolios face a specific compliance gap. The foundation's income-tax exemption does not extend to RET, which is a local tax. Foundations that have not separately reviewed their RET position since January 2025 may be carrying an understated liability. A tax advisor in Warsaw familiar with both the family foundation regime and local tax rules is best placed to identify that gap quickly.

Transfer pricing considerations also arise where a foreign parent leases Polish real estate from a Polish subsidiary. The RET base feeds into the arm's-length rent calculation. If the RET liability increases following reclassification, the transfer pricing documentation should be updated within the same fiscal year – failure to do so forfeits the protection of the documentation safe harbour and exposes the group to surcharges of up to 10% of the adjusted amount.

Foreign investors should also note that the pre-pack sale procedure in Poland – increasingly used to acquire distressed real estate assets – requires the purchaser to assume the seller's RET obligations from the date of transfer. A buyer who has not mapped the target's reclassification exposure under the 2025 rules may inherit a liability that was not reflected in the purchase price.

What action is required now?

The immediate deadline is the annual RET declaration. Taxpayers who are legal entities must file or correct their RET declaration with the competent municipal authority by 31 January each year. For the 2025 tax year, that deadline has passed – but a corrected declaration can still be filed voluntarily, reducing penalty exposure from 20% to 5% of the underpaid tax.

We assisted a retail client in Lower Silesia (spring 2026) in filing a corrected RET declaration after an internal review identified three structures that had been classified as building components under the old Construction Law approach. The correction reduced the client's annual liability by PLN 340,000 and pre-empted a scheduled municipal audit.

Four immediate action items apply to most affected taxpayers:

  • Conduct a physical inventory of all structures and installations against the new statutory definitions before the next municipal audit cycle.
  • Review transfer pricing documentation where RET feeds into intercompany lease calculations.
  • Check whether any temporary structures exceeded the 180-day threshold in 2024 or 2025.
  • For family foundations: obtain a separate RET opinion, as the income-tax exemption does not cover local taxes.

Companies using IP Box regimes or claiming R&D relief should also check whether any qualifying assets are held in structures now subject to a higher RET rate. The increased annual cost affects the net return on those assets and may alter the economics of the relief. Polish tax law treats RET as a deductible cost for CIT purposes, but only if correctly declared – an undeclared liability is not deductible until the correction is filed. For context on how Polish digital reporting obligations interact with real estate holding structures, see our note on the KSeF deadline timeline 2026/2027 for companies in Germany.

The window for voluntary correction without full penalty exposure remains open. Acting now costs a fraction of what a municipal audit will cost later – in professional fees, management time, and reputational risk with the local authority that sets your future RET rate.

Your company's specific real estate portfolio may require a reclassification review under the 2025 definitions. Delay forfeits the reduced-penalty correction window and risks a full municipal audit with surcharges of up to 20% of underpaid tax.

If your company holds industrial, logistics, or energy-related real estate in Poland – or if your family foundation has not reviewed its RET position since January 2025 – contact us to arrange a targeted review: info@kordeckipartners.com.

Frequently asked questions

Q: Does the 2025 redefinition of "structure" apply retroactively to assets acquired before 1 January 2025?

A: The new definitions apply from 1 January 2025 onwards. Assets acquired earlier are assessed under the new rules from that date. However, any RET declarations filed for 2024 and earlier years remain governed by the prior legal framework, meaning a taxpayer cannot use the 2025 definitions to reduce a past liability – but equally cannot be assessed under them for pre-2025 periods.

Q: How much can the reclassification of a single installation increase annual RET liability?

A: The difference between the building rate (a fixed amount per square metre, currently a maximum of PLN 1.17 per square metre per year for commercial buildings) and the structure rate (2% of declared value per year) can be significant. A photovoltaic installation with a declared value of PLN 5m generates an annual RET liability of PLN 100,000 as a structure – a figure that would not arise if it were treated as a building component.

Q: Is a tax advisor in Warsaw required, or can the RET review be handled internally?

A: Internal teams can conduct a preliminary inventory, but the classification of borderline assets – particularly technical installations and underground networks – requires analysis of the new statutory text alongside the administrative court case law that preceded it. An external Polish tax law specialist reduces the risk of a classification that looks defensible internally but fails on audit. The cost of an external review is typically recovered within the first year if any reclassification is identified.

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, local tax compliance, and cross-border holding structures. 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.