Today\u2019s real estate market is about more than location, financing and the efficient delivery of investment projects. Comprehensive tax advisory also plays a crucial role: it enables the transaction structure to be planned securely, taxes such as VAT and the tax on civil law transactions (PCC) to be accounted for correctly, corporate income tax (CIT) risks to be minimised, real estate tax to be reported properly, and the documentation required by investors, financing institutions or auditors to be prepared.<\/p>\n\n\n\n
At Moore Polska, we support entities involved in the design, construction, financing, management and commercialisation of real estate \u2013 from the initial investment concept and the transaction itself through to a sale, lease or the long-term management of the asset. Our services include transaction structuring, VAT on real estate transactions, real estate tax, transfer pricing, real estate company obligations, Mandatory Disclosure Rules (MDR), tax on revenue from buildings and real estate due diligence.<\/p>\n\n\n\n
Real estate transactions and projects are particularly tax-sensitive because they involve numerous regulatory areas: VAT, PCC, CIT, personal income tax (PIT), withholding tax (WHT), real estate tax (PON), MDR and transfer pricing. Incorrect classification of a transaction may result in the loss of the right to deduct VAT, a liability to pay PCC, tax adjustments, interest, a dispute with the tax authorities or a delayed closing.<\/p>\n\n\n\n
In practice, real estate tax advice is required both when acquiring land, a building or a real estate company and when operating an asset on an ongoing basis, whether through commercial leasing, hotels, aparthotels, utility recharges, management services or intragroup financing.<\/p>\n\n\n\n
Real estate tax advisory goes far beyond a one-off transaction review. It provides comprehensive support for the secure planning of an acquisition, sale, lease, financing, management and commercialisation of real estate assets. In practice, the most important areas are those that directly affect investment costs, the right to deduct VAT, reporting obligations, legacy risks and the tax liability of the investor or management board.<\/p>\n\n\n\n
Below, we outline the key matters that should be reviewed in real estate projects \u2013 both at the transaction planning stage and as part of ongoing operations.<\/p>\n\n\n\n
One of the first questions in a real estate transaction is which structure to choose: asset deal<\/strong> or share deal<\/strong>.<\/p>\n\n\n\n In an asset deal, the subject of the sale is a specific asset, such as land, a building, a structure, a perpetual usufruct right or related infrastructure. It is essential to determine whether the transaction is subject to VAT, qualifies for an exemption or may constitute a transfer of an enterprise or an organised part of an enterprise. This classification determines the VAT and PCC treatment, the right to deduct VAT and how the initial value for tax depreciation purposes is established.<\/p>\n\n\n\n In a share deal, the investor acquires shares in a company that owns real estate. This structure may be attractive from a transaction perspective, but it requires a review of the company\u2019s tax history, including potential VAT, CIT, real estate tax, WHT, transfer pricing and MDR risks.<\/p>\n\n\n\n Professional real estate tax advice should therefore include an analysis of the transaction structure, the preparation of tax clauses for the share purchase agreement (SPA), an assessment of the VAT, PCC and CIT consequences, and support with the statements and documents required before closing.<\/p>\n\n\n\n VAT on real estate transactions<\/strong> is one of the most common areas of risk. When selling a building, structure or perpetual usufruct right, it is necessary to analyse the first occupation, the history of the property\u2019s use, any improvements made and any required VAT adjustments.<\/p>\n\n\n\n Incorrectly treating a transaction as VAT-exempt or taxable may result in the loss of the right to deduct VAT, a requirement to adjust input VAT, interest and a dispute with the tax authorities. In practice, services connected with a lease can also be problematic, including utilities, parking, security, reception, cleaning and other ancillary services.<\/p>\n\n\n\n Effective real estate tax advice should therefore cover not only an opinion on the transaction itself, but also invoicing guidelines, a review of Standard Audit File for Tax (JPK) reporting, the calculation of VAT adjustments and operational recommendations for finance and property management teams.<\/p>\n\n\n\n Real Estate Tax: Classification of Buildings, Structures and Land<\/p>\n\n\n\n Real estate tax is a local tax levied by municipalities, and its amount depends, among other things, on resolutions adopted by the competent municipal council. For businesses, it is particularly important to distinguish correctly between assets classified as buildings, structures and land.<\/p>\n\n\n\n In the commercial real estate sector, incorrect classification can lead to overpayments or underpayments accumulating over many years. This applies in particular to technical installations, external infrastructure, car parks, roads, networks, equipment and components that support the operation of a property.<\/p>\n\n\n\n A real estate tax review makes it possible to verify tax returns, reconcile tax data with technical documentation, check initial values and prepare any necessary corrections. This can both reduce the risk of a tax audit and enable the recovery of overpayments.<\/p>\n\n\n\n Corporate groups operating in the real estate market frequently enter into transactions between related parties. These may include asset management and property management services, intragroup leases, cost recharges, financing, and design, technical or development services.<\/p>\n\n\n\n In such cases, it is necessary to perform a functional analysis, prepare transfer pricing documentation and conduct a benchmarking study confirming that the settlement terms are at arm\u2019s length. Particular attention should be paid to setting appropriate allocation keys for shared costs, fees for management services, interest rates on intragroup financing and the rules for allocating other categories of expenditure.<\/p>\n\n\n\n The absence of appropriate transfer pricing documentation may result in an upward adjustment of taxable income and liability for members of the management board.<\/p>\n\n\n\n Real estate company status entails additional reporting obligations. An entity may qualify as a real estate company if it meets specific conditions relating, among other things, to its real estate assets and revenue structure.<\/p>\n\n\n\n In practice, it is necessary to verify whether an entity meets the statutory definition of a real estate company and then prepare the required information on its ownership structure and shareholdings. In share transactions, the obligation to act as tax remitter may also be relevant, particularly where the seller is a non-resident.<\/p>\n\n\n\n Tax advice in this area helps reduce the risk of penalties, incorrect reporting and transaction delays.<\/p>\n\n\n\n Operating models such as hotels, aparthotels, the private rented sector (PRS) and short-term rentals require separate VAT analyses. Traditional accommodation services, residential leases and hybrid models involving reception services, cleaning, ancillary services and booking fees are each treated differently.<\/p>\n\n\n\n The most common risks include incorrect classification of the supply, application of an incorrect VAT rate, and errors in invoicing advance payments, vouchers, parking services, food and beverage services, wellness services or utilities. For PRS, the key question is whether the service genuinely meets residential needs or more closely resembles a hotel model.<\/p>\n\n\n\n Good practice is to prepare a matrix of supplies and applicable VAT rates, invoicing guidelines and procedures for operational teams.<\/p>\n\n\n\n Mandatory Disclosure Rules are also important in the real estate sector. In particular, they require an assessment of whether a given arrangement must be reported to the Head of the National Revenue Administration and the correct identification of the roles of the parties to the arrangement, including the promoter, user and supporter.<\/p>\n\n\n\n MDR risks may arise in connection with project financing, portfolio reorganisations, contributions in kind, cross-border transactions or the use of tax reliefs. Larger organisations may need to implement an MDR procedure and provide staff training.<\/p>\n\n\n\n A separate area is the tax on revenue from buildings, which requires the identification of taxable properties, determination of the tax base, calculation of the liability and analysis of available deductions or refunds.<\/p>\n\n\n\n Before acquiring a property or a company that owns real estate, it is advisable to conduct tax due diligence on the property or the company, as applicable. Such a review covers property encumbrances, zoning plans, VAT, CIT, real estate tax, transfer pricing, WHT, MDR, depreciation, tax returns, accounting records, audits and potential legacy liabilities. The due diligence findings may affect the price, security arrangements, warranties and the final transaction structure.<\/p>\n\n\n\n Our comprehensive support is designed primarily for residential and commercial developers, institutional investors, funds, PRS platforms, hotel operators, property owners and managers, construction companies, architectural practices, property managers and asset managers.<\/p>\n\n\n\n Their shared objective is to mitigate tax risk, preserve the right to deduct VAT, ensure correct local tax compliance, prepare documentation for an investor or bank, and create a tax structure tailored to the business model.<\/p>\n\n\n\n Summary: Real Estate Tax Advisory as an Element of a Secure Investment<\/p>\n\n\n\n Real estate tax advisory<\/strong> is not limited to support with a one-off transaction. It involves comprehensive tax risk management throughout the project lifecycle: from investment planning through acquisition, financing, construction, leasing and operation to the sale of the asset or shares.<\/p>\n\n\n\n A proper analysis of VAT, PCC, CIT, real estate tax, transfer pricing, MDR and real estate company obligations helps avoid costly errors, expedite the transaction and enhance the security of the investor, owner and management board.<\/p>\n\n\n\n Do you have questions about the tax security of a real estate investment or transaction? Contact Moore Polska. Our expert, Seweryn Tomaszewski, will be pleased to answer your questions and help identify the areas that should be reviewed before a business decision is made.<\/strong><\/p>\n\n\n\nVAT on Real Estate: First Occupation, Adjustments and Invoicing<\/h2>\n\n\n\n
Transfer Pricing in the Real Estate Sector<\/h2>\n\n\n\n
Real Estate Companies and Reporting Obligations<\/h2>\n\n\n\n
VAT in Hotels, PRS and Short-Term Rentals<\/h2>\n\n\n\n
MDR, Tax on Revenue from Buildings and Due Diligence<\/h2>\n\n\n\n
Who Is Real Estate Tax Advisory For?<\/h2>\n\n\n\n