The rates of the property tax are being determined individually by every municipality and may differ between the investment areas located in various municipalities. National law provisions specify the maximum level of property tax rates in the following amounts:
Property tax exemption may result directly from the Act on Local Taxes and Charges. The example catalogue of exemptions is determined by art. 7 sections 1 and 2 of the Act on Local Taxes and Charges. On the other hand, the municipal council may introduce under the Act other exemptions than the ones determined in the Act, provided however that their nature is objective.
The municipalities may adopt resolutions taking into account property tax exemptions for new investments with the use of two methods:
In the form of public aid
the municipal council adopts relevant resolution on property tax exemptions within regional aid. The resolution must be notified to the European Commission. After notification of the resolution, all new investors that implement a project in compliance with the terms & conditions determined in the resolution are automatically exempted from the property tax in the maximum amount allowed in the resolution (on condition of submission of an application)
The commune grants property tax exemptions to all investors that plan to commence manufacturing activity. The main condition for tax exemption granting is creation of new workplaces within 3 years from the date of activity commencement.
Tax exemptions are granted for the following periods:
- 1 year – the investor created at least 5 new workplaces;
- 2 years – the investor created at least 50 new workplaces;
- 3 years – the investor created at least 250 new workplaces;
- 4 years – the investor created at least 500 new workplaces;
- 5 years – the investor created at least 100 new workplaces.
The amount of the aid depends on the maximum intensity of aid determined for the area where the investment is realised as well as the amount of costs eligible to coverage with the aid.
In the form of de minimis aid
the municipality adopts a resolution that is not notified to the European Commission. New investors that implement projects in compliance with the terms & conditions determined in the resolution may apply for de minimis aid in the form of property tax exemption. Tax exemption is granted in the course of a separate consent of the municipal authorities and the maximum value of the tax exemption may not exceed the amount of EUR 200,000.00 gross in three subsequent tax years.
Tax exemptions are granted for
- newly-constructed buildings and structures designed for business activity, provided that they are used for this activity;
- newly-acquired land, buildings and structures designed for business activity, provided that they are used for this activity;
- land, buildings and structures if they are owned by the taxpayer and the taxpayer starts to use them for manufacture or service provision and before they were not used for the purposes of business activity or business activity was discontinued, on condition that capital outlays connected with start-up or expansion of the enterprise were incurred.
The exemptions determined above are included in de minimis aid: In case of the support specified above, the entrepreneur may not use other entitlements to public aid provided by the municipality at the same time. The total amount of aid used by the entrepreneur in the form of de minimis aid may not exceed the amount of EUR 200,000.00 in three subsequent tax years..
Among local programmes of support for the investors, special attention should be put to ‘Mozart’ City Programme of Support for the Partnership of Higher Education & Science and Business Activity Sector, realised since 2012, the purpose of which is initiation, building and coordination of partnership between higher education and business activity sector, aimed in particular at development and activation of local labour market.
Within the Programme, it is possible to obtain support for realisation of ventures undertaken jointly by entrepreneurs and scientists. The support consists mainly in financing by the City of Wrocław of apprenticeships of scientific workers in enterprises qualified to participation in the Programme.
The apprenticeships are granted mainly to the entrepreneurs, for which transfer of the given type of knowledge is necessary for the purposes of development of business activity and may positively affect enhancement of competitiveness and innovativeness of the enterprise.
Through effective cooperation with scientific and higher education centres, the entrepreneurs obtain the possibility to use the synergy effect and thus to enhance the economic potential of their business activities.
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Additional information – Please contact us in relation to provision of additional information relating to property tax provisions.
Searching for locations – Invest in Wrocław team is ready to provide you with address data of local authorities and information on property tax rates for specific real estates.
Optimisation of your investments – we are able to advise you how to invest in Poland from tax point of view. Tax optimisation of your business in Poland is possible and advisable. We can provide you with a list of properly selected tax advisors who will assist you