On August 1, an announcement of the Minister of Finance was published specifying the amount of maximum rates of local taxes and fees, including real estate tax, for 2023.
The increase in rates for land related to business activity is 12.62%, and for buildings related to business activities the maximum rate increased by 11.81%. The maximum rate for the taxation of buildings remains unchanged at 2%. This means that the tax liability of real estate tax may increase by approx. 12% compared to 2022.
It should be noticed that the announcement specifies only the maximum rates of local taxes and fees. The rates applicable in the area of individual municipalities are determined by the municipality council by way of a resolution.
However, taking into account the current economic conditions, in the PwC view, local government bodies will intensively search for additional savings in their own budgets. Therefore, taxpayers can expect high increases in real estate tax and increased intensity of inspections and tax proceedings in this area, which means that the necessity of validating the real estate tax base has become much more important than in previous years.