Real property tax

​Real property tax continues to raise questi​​ons and problems for taxpayers. When it comes to buildings and land, it depends on their area, but when it comes to structures – it depends on their value. Rates also vary depending on the intended use of a building or land. The rate is set by the relevant municipality within the limits set by law. Moreover, exemptions from this tax can also vary locally.

This tax applies to buildings, land and structures. It is imposed on owners, perpetual usufructuaries, autonomous possessors and, in some cases, dependent possessors of real property owned by the State Treasury or a local government unit. Some taxpayers are exempt from it. The exemption may also apply to certain types of constructions. However, it is particularly difficult to properly classify a construction. The statute itself is extremely short but interpretation doubts abound. And municipalities are increasingly trying to patch up their budget deficits by controlling if this tax has been properly accounted for. Therefore, professional assistance in reviewing obligations related to this tax is not only sought by highly diligent taxpayers but becomes a sheer necessity.

If you have any questions, please contact Rödl & Partner experts.