Investment in real estate. All about taxes on civil law. Real estate transactions. 18+
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Investment in real estate. All about taxes on civil law. Real estate transactions. 18+

December 5, 2019


Hi everyone,
Today’s video topic Tax on civil law transactions (also called PCC) which is applicable to reale
state deals: In the case of an asset deal ( the direct
purchase of an interest in real estate by a company or individual), where the seller
is not an entity carrying on a business , a 2% tax on civil law transactions (PCC) is
applicable, based on the market value. This is normally the purchase price but can
sometimes be assessed at a higher level by the tax authorities using an authorized expert’s
opinion, which happens very rare in practice. The obligation to pay PCC rests with the buyer
and is pai at the notary. If the seller is an entity carrying on a business,
value added tax (VAT) is usually payable. Generally, the standard rate of 23% applies. With respect to subsidized housing – a rate
of 8% applies. In principle, VAT charged by the seller can
be recovered by the buyer as input VAT (if the purchaser is a VAT taxpayer carrying out
transactions which are subject to VAT). If a sale is subject to VAT, PCC is not applied. But the sale of agricultural land is exempt
from VAT and but in such cases 2% PCC is paid. If a sale is exempt from VAT, it is subject
to tax on civil law transactions (PCC) at a rate of 2%. In the case of a share deal for example the
purchase of shares in a company being an owner of the real estate, PCC at 1%, calculated
on the basis of the market value of the shares, is payable by the acquiring party. Similarly, if an interest in a partnership
is purchased and partnership is an owner of a real estate, PCC at 1% is also applicable,
and is calculated on the basis of the market value of the interest. That’s all for today, if you want to receive
more information about real estate investment in Poland , subscribe to our YouTube channel,
or contact us from down below to receive the best investment advisory. see you soon.

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