Real property taxation up hard. In 2024 we will pay more for apartments and houses

Kraków decided to importantly increase the maximum rates of property taxes, which means a greater financial burden for the residents of the city. These increases will affect owners of both housing and business premises, expanding the burden by 20 percent in any cases.

As of January 2024, the inhabitants of Krakow will pay PLN 1.15 per square metre of residential building area, which represents a crucial increase compared to the current rate, which was 98 cents per square metre. This is simply a crucial leap that can importantly affect the budgets of people who rent apartments or conduct business.

The increase in rates is not symbolic – here are the calculations

The Kraków authorities illustrated the increase in taxes through concrete examples. According to information from newsnadzis.pl portal, for an flat of 70 square meters with a participation in the land of 20 square meters this year's taxation is PLN 80. However, forecasts for 2024 indicate that this taxation will increase to PLN 95, which means an yearly increase of PLN 15.

In terms of land utilized for economical purposes, for each square metre next year the city will should be paid PLN 1.34, which represents an increase of 21 grosz compared to current taxation. However, in the case of land under housing, the city will request 71 cents per meter, which represents an increase of 12 cents compared to current taxation.

Traditionally, the highest taxation rates will affect buildings intended for business purposes. presently in Krakow this rate is PLN 28,31 per square meter. From January 2024 this rate will increase to PLN 33.10 per square metre. For example, for a 700 square meters commercial building and 5,000 square meters land, the projected yearly taxation increase will be PLN 4423 (which translates into PLN 368.58 per month).

The largest amount will be paid by commercial property owners, the least protected entities

Let us stress that from January the following year, all metre of land utilized for economical purposes will be charged a fee of PLN 1.34, which means an increase of 21 groszy compared to this year's rates. On the another hand, the town will request a fee of 71 grosz per metre, a 12 grosz increase compared to the current rates.

However, it is worth noting that there is simply a peculiar resolution of the City Council of Krakow, which protects medical entities, public benefit organizations and alleged protected industries, specified as dying professions, bookstores and antique shops. For these entities, the taxation rates will stay unchanged. In addition, preferential taxation besides includes institutions related to culture and athletics – this is an crucial component highlighted by newsnadzis.pl. This policy aims to support sectors that play an crucial social or cultural role, ensuring stableness in the taxation context.

W Poznań will besides increase the rates of property tax

The increase in operating costs prompts many cities in Poland to apply the option of raising the rates of property tax, which becomes the trend of this year.

The manager of the Department of Taxes and Charges at the Poznań City Office, Iwona Maćkowiak, stressed on Radio Poznań that practically all major cities in Poland have akin taxation rates and, like Poznań, they besides intend to approve maximum levels of taxation.

Poznań councillors decided to increase next year's rates to the maximum limit, which means an increase of about 15 percent.

It is planned that Poznań will rise PLN 612 million for the property taxation next year. Currently, this year, almost PLN 550 million will be transferred to the city budget from this source. This is simply a clear increase in the city budget, but besides poses challenges to residents and property owners for higher financial burdens.