Don't pay 19% taxation after selling the apartment. You'll even number the furniture and appliances!

The sale of real property within 5 years of its acquisition requires payment 19% of income tax from income earned. These are frequently amounts in the order of respective tens of thousands of zlotys that go to the fiscal office. However, there is simply a full legal way to avoid this burden – a celebrated housing relief. Many Poles, however, do not realize how wide the list of expenditures that can be deducted from it is. It turns out that the taxation allows to settle not only the acquisition of a fresh apartment, but besides its renovation, and even... purchase of household appliances and furniture in buildings. The key is simply a precise knowing of the definition of "own housing targets" and a thorough documentation of each expenditure. In 2025, awareness of these principles can bring tremendous savings in the home budget.

Housing relief 2025 – who is entitled and what are the fundamental principles?

The regulation is simple: if you sale property (a flat, a house, a plot) before the expiry of five years Since the end of the calendar year in which you acquired it, you gotta share your profits with the taxation office. The taxation base is income, i.e. the difference between sales gross and documented acquisition costs. The taxation rate is 19%.

However, the legislator predicted a gateway in the form of housing relief, regulated in Article 21(1) point 131 of the PIT Act. According to it, the sales gross is exempt from tax, provided that the proceeds are spent on their own housing purposes. The most crucial condition is the deadline – for spending money you have three taxation yearsfrom the end of the year in which the sale took place. This means that by selling the flat in 2024, you have time to invest funds until the end of 2027. Importantly, in order to benefit from the full exemption, you must allocate to housing the full amount obtained from the sale, not just the income itself.

What precisely is meant by "household targets"? It'll surprise you.

Most taxpayers presume that a "residential purpose" is simply to buy a fresh flat or build a house. True, but the list of eligible expenses is much wider and includes items that many people would not dream of. The interpretations of the taxation authorities and the judgments of the administrative courts confirm that much more can be deducted.

Here is simply a list of the most crucial expenditure which the taxation sees as achieving the objectives of housing:

• Acquisition of a fresh building or dwelling (including participation in real estate).
• Purchase of land to build a residential house.
• Payment of the mortgage credit (including interest), which was dragged into the property even before it was sold.
• Refurbishment, reconstruction, extension or adaptation of your own building or residential premises. And that's where the most interesting begins.
• Purchase of household appliances and furniture in permanent construction. Yes, you can deduct expenses for a stove, oven, dishwasher, refrigerator or washing device if they are an integral part of the furniture. The same applies to niche cabinets, wardrobes for dimensions or permanent bathroom components.

It is crucial that these elements are permanently related to the building and they could not be moved to another place without dismantling and possible damage. This is what distinguishes the recess cabinet from the free-standing or fridge to the building from the free-standing model.

What expenses won't you charge? That's what the fiscals think.

The awareness of what cannot be deducted is as crucial as the cognition of possible deductions. A mistake in this substance may consequence in the taxation office questioning the relief and the necessity to pay the taxation with interest. The red flag for officials will surely be spending on elements that are not permanently related to the property and are decorative or useful, but mobile.

What You can't. Get laid for housing?

• Freestanding furniture: couches, tables, chairs, chests, bookcases.
• RTV equipment: TVs, home theatre sets, computers.
• Decorative elements: carpets, curtains, lamps, paintings.
• Small appliances: Coffee machines, toasters, vacuum cleaners.
• Expenditure on recreational property, e.g. renovation of the vacation home on the ROD plot. The mark must be strictly residential, not leisure.

The gross office shall verify the nature of the expenditure very precisely. The effort to “smuggle” the acquisition of a fresh tv as a housing expense will almost surely end in failure and unpleasant financial consequences.

Documentation is the basis. How to prepare for taxation control?

Fiscus doesn't take a word for it. In order to benefit effectively from housing relief and sleep peacefully, you must gather complete documentation confirming each expenditure. Remember that the taxation office has as many as 5 years to verify your taxation return, so papers should be kept for a long time.

Named VAT invoices are the basis. This is the most crucial evidence that clearly identifies you as a buyer and precisely determines what was purchased. The invoice for the cabinet should contain a ‘spliff’ or ‘spliff’, not just ‘furniture’. In addition to invoices, it is besides worth collecting:

• Confirmation of bank transfers – supply additional proof of expenditure.
• Notarial acts where fresh property or land is purchased.
• Contracts with contractors repair and construction works.

No applicable documents is the most common reason why the offices question the relief. A thorough approach to “paper science” is an investment that will save you tens of thousands of PLN and avoid the stress of possible control. It is worth carefully examining your expenses and, in case of doubt, consult the taxation advisor to make full and safe usage of the possible of housing relief.