Poland has scrapped its property purchase tax for first-time buyers as the Polish government seeks to support young couples climbing onto the housing ladder.
The tax exemption will apply only to first-time buyers and entered into force on Sept. 1. It means that newcomers to the housing market will not have to pay 2 percent of the property purchase price to the government.
Tax advisors believe that the reform will stimulate movement at the lower end of the housing market and provide much-needed support for prospective homeowners at a time when property prices have been on the rise.
“The savings will be considerable. Anyone buying a property worth €100,000 will save €2,000, and anyone purchasing one for €200,000 will be €4,000 better off,” tax advisor Piotr Juszczyk told Polish Radio.
However, the government has also announced that the property purchase tax will be raised to 6 percent for anyone purchasing their sixth or more properties. The objective is to discourage speculation on the property market.
Further reforms require all housing units being built to be larger than 25 square meters. This is meant to stop the exploitation of small commercial properties for housing purposes.
Other housing regulations that have been announced include increasing the mandatory distance between buildings on adjacent plots from 4 to 5 meters.