When selling a private property during the 5 - year period referred to in the PIT Act, you can take advantage of a tax exemption, i. E. housing relief (Article 21 (1) (131) of the PIT act). The condition for using the discount is to use the funds received from the sale for own housing purposes. The taxpayer has 3 years to do so from the end of the tax year in which he sold the property.


Housing expenses are defined as costs related to, inter alia, expenses incurred for the construction, extension, superstructure, reconstruction or renovation, as well as adaption of own building, its part or own dwelling (Article 21 (25) (1) (d)).

The PIT Act does not precisely define the concept of renovation, construction, and does not contain a catalog of specific expenses and conditions required from the property owner who plans to take advantage of the housing relief.

General tax ruling No. DD2.8202.4.2020 issued by the Minister of Finance, Funds and Regional Policy of October 13, 2021 clarifies that every taxpayer who purchases and installs, for his own, non-commercial housing purposes, inter alia:

  • A gas or gas-electric cooker or an induction hob;
  • Oven, dishwasher, washing machine, refrigerator - built - in or free standing;
  • A cabinet constituting an element of fixing the washbasin;
  • Ceiling and wall lighting, including LED strips and halogen meshes;
  • Furniture that are permanently structurally connected with building elements, including the so-called “Custom-made furniture”, free-standing kitchen furniture.


PwC Comment

The general tax ruling issued by the Ministry of Finance will allow the taxpayer to safely qualify expenses for renovation and modernization of a residential building or a dwelling settled under the housing allowance by which the income tax is reduced.