As we reported, the President of Katowice has already demanded a higher tax on developers from vacancies, i.e. unsold housing. These activities also aroused interest in some councilors from Krakow, and specifically the opposition club of Krakow councilors for residents. At the beginning of September 2025, they submitted a draft resolution (No. 829), which would oblige the city president to increase the real estate tax rate for investment funds and developers who hold unnecessary apartments. – We want developers and investment funds to stop treating apartments as speculative goods – indicates Łukasz Gibała, leader of the councilors' club.
Tax experts explain if there is a chance for vacancies? It is possible that subsequent cities will want to take similar actions.
Read also: How to change contracts with contractors and regulations in connection with KSEF? We translate
Which would mean a vacancy tax
Councilors from Krakow want Developers paid a higher property tax on unsold housing – not at a low residential rate (PLN 1.19 per sq m), only according to high economic activity (PLN 34 per sq m). This would bring millions of zlotys to additional revenues to the city's budget.
The Krakow councilors' club for residents indicates on its websites that a similar solution is already in Katowice.
In turn, the President of Katowice, as we reported, refers to the resolution of the Supreme Administrative Court of October 21, 2024 (reference number III FPS 2/24). It shows that if the company, which is the owner of the apartment, rents it to a natural person who simply lives in the premises, then a low residential rate is used, not a rate for business activity.
– The President of Katowice reversed the situation and concluded from the resolution that since the apartment was built and offered for sale, no one lived in it. Therefore, one cannot talk about satisfying housing needs – explained the intentions of the tax authority Łukasz Szatkowski, a manager in the MDDP real estate team. As a result, the developer from an unsold apartment would pay tax at the highest rate (appropriate for real estate related to running a business).
Similar actions from the President of Krakow are demanded by the Krakow Club for residents. Is there a chance?
Is there a chance for vacancies?
According to Radosław Urban, a tax advisor at the KWKR office Konieczny Wierzbicki and partners, councilors interpret the resolution of the Supreme Administrative Court in a way that raises doubts as to compliance with the provisions and judgment of the Constitutional Tribunal. – The Supreme Administrative Court has ruled that the higher tax rate applies only to those residential buildings that are actually occupied to run a business, and the rental of buildings or parts thereof for housing purposes – that is, satisfying the housing needs of tenants – does not meet this condition and cannot be treated as commercial activities. At the same time, having a building or part of it, for which the entrepreneur does not perform any activities, is not a category of actual seizure of him for conducting business activity – explains Radosław Urban. The expert admits that The resolution of the Supreme Administrative Court has opened a new interpretation field, but certainly does not give grounds for automatic taxation of empty apartments or premises bought as an investment. – This idea, although politically attractive, raises doubts as to the compliance with applicable law and can lead to disputes instead of real and lasting solutions – comments Radosław Urban.
What maybe the city council in the field of property tax
The expert also emphasizes that The commune council has no competence in determining the subjective taxation items or even full freedom in determining the amount of these taxes. – This matter is regulated by the Act on local taxes and fees, which grants the municipal council of entitlement only to clarify real estate tax rates as part of the statutory “forks”. The City Council cannot therefore impose any new tax – says Radosław Urban.
Therefore, the resolution can only have significantly internal and be a practical interpretative clue and information for taxpayers what position on vacancies is occupied by the city. However, it is not binding on taxpayers. – The resolution, if it was adopted, has no such status as a general interpretation or tax explanations of the Minister of Finance. A taxpayer who has a different approach to the interpretation of the provisions may arise in court – explains the tax advisor from the KWKR office.
Radosław Urban also points out that:
– There is no definition of “vacancy”,
– There may be many different situations and reasons why residential premises are empty and the application of these rules to all of them may not be possible,
– Councilors are trying to rely on the resolution of the Supreme Administrative Court, which laconically refers to this issue, but they do not seem to take into account the wider context of this resolution, or the previous judgment of the Constitutional Tribunal, which ruled that The very possession of the premises by the entrepreneur is not sufficient to cover it with a higher property tax.
– tax – in the case of buildings and residential premises – can be paid at the highest rate (for business activity) only if he is occupied to conduct business. Such a occupation consists in the actual (physical) use (occupation) of all or part of the residential building for conducting business activity – and this is the merit of the Supreme Administrative Court resolution. If the building remains empty, it is difficult to say that it is occupied to run a business – says Radosław Urban.
Author: Łukasz Zalewski, journalist Business Insider Polska, Department Law
