The Ministry of Finance proposes that the amount of the tax would depend not on the sum of the property values, but on the median in a given local government. The starting point for taxation would be the average value of a flat in each local government.
The property tax will not be charged on the basis of the market value – i.e. the purchase and sale of a single residential unit – but according to the results of the mass property assessment, which entered into force on January 1, 2021 and according to which local government medians were determined. The median is the average value of a residential property in a given local government, which is determined by ranking the average market values of all completed residential buildings and premises registered in the real estate register in this local government from the lowest to the highest.
For example: If the value reaches one or two medians, such properties will be taxed at a rate of 0.06%. For more than two medians, 0.1 percent. For example, in Vilnius the median real estate is 60.1 thousand. euro. If the value of a particular property determined by the Center of Registers reaches PLN 100,000, it will be subject to the tax rate of 0.06%. This means that the owner will have to pay around €30 per year for the property.
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A property that does not exceed the median would be taxed at a 0 percent rate. It is also proposed to exempt people who would have to pay less than 5 euros, because charging such an amount is not worth it.
If a given person owns more than one flat, the local government itself may determine and apply the tariff to the second and subsequent flats. The rate may vary from 0.1 percent. up to 1 percent
Read more: New ideas for property tax
A socially sensitive tax model
After public consultation, the tax model became more socially sensitive – half of all owners of flats where the place of residence is declared would not pay tax, and socially supported people who have reached retirement age could benefit from the possibility of deferring tax payments until ownership is transferred. This means that seniors and disadvantaged people who submit an application to the local government will be able to defer tax payments until the property is transferred to another person.
Declarations from 2026
After the adoption of the amendments to the Acts in the Sejm, the first real estate tax returns according to the changed model would be delivered to the population in 2026. This means that the State Tax Inspection would have to prepare and submit declarations to taxpayers by March 1, 2026 (for 2025).
Read more: What should be kept in mind when submitting declarations?
Non-commercial real estate
The Ministry proposes that local governments should tax other non-commercial real estate at their discretion, from 0.1 to 1 percent. tariffs, and the revenues would go to local governments, and not to the state budget, as is the case today.
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