A new tax plan is causing a stir in Poland, with fears that property owners could face hefty bills running into thousands of złotys per year. The Organization for Economic Co-operation and Development (OECD) has recommended that Poland replace its current property tax system—based on the size of a house or apartment—with a levy tied to the real estate’s market value. Often known as a “property tax” or “cadastral tax,” this system is already in place in several Western European countries.
Under the proposed model, the annual tax could reach around one percent of a property’s worth. For owners of a home valued at 500,000 złotys (around USD 120,000), the yearly tax could be 5,000 złotys, while properties worth 1,000,000 złotys (about USD 240,000) might see owners paying as much as 10,000 złotys. Experts warn this could be devastating for many Polish families, whose monthly household budgets may not withstand such additional costs.
The OECD’s recommendation follows concerns about Poland’s large budget deficit, which is set to reach nearly 300 billion złotys in 2025. Some analysts point out the deficit may be even higher once hidden liabilities are factored in. For policymakers, a property-value-based tax could help plug this gap, but many citizens fear it would be a ruinous burden.
However, implementing such a sweeping fiscal reform is no simple task. Poland currently lacks a unified real estate database that accurately logs properties and their values. Before any property-value tax could take effect, authorities would need to overhaul the nation’s property records and improve data sharing among various public registries. This would require significant investment and time—offering at least a temporary reprieve for worried homeowners.