Can one forgotten declaration cost you tens of thousands of zlotys in taxes?
Selling real estate often seems like a simple process: signing a notarial deed, settling the price, and closing the deal. However, in practice, many people—even years later—find out that the transaction has serious tax consequences. This problem particularly affects those who believed they were entitled to tax exemptions but were nevertheless ordered to pay their outstanding personal income tax (PIT) plus interest.
Real estate sales and tax – basic rules
Pursuant to the Personal Income Tax Act of 26 July 1991 (Article 10, Section 1, Item 8 and Article 30e), the sale of real estate within five years of the end of the year in which it was acquired or constructed is subject to taxation. The tax rate is 19% of income.
This means that if someone sells their apartment "too early," they must file a tax return. However, the legislature provided for exceptions – one of them was the so-called registration tax relief for properties purchased between 2007 and 2008.
Registration relief – where did the problem occur?
The registration tax relief allowed taxpayers to avoid tax if they were registered in the property they were selling for at least 12 months. It sounds simple, but the regulations added an additional formal requirement: the need to submit a special declaration to the tax office.
And it was this very element that became the source of problems. Many people assumed that since the government "knew" their registered address, there was no need to submit additional documentation. Unfortunately, the lack of a declaration was treated by the tax authorities as a failure to meet the conditions for the tax relief.
In practice, this meant that even after several or a dozen years, the taxpayer could receive a decision ordering payment of tax with interest – often in very high amounts.
What has changed in the case law and why is the case still relevant?
The Constitutional Tribunal ruled on the issue of registration relief, pointing out that the excessive formalism of the regulations – making the right to exemption dependent on the submission of a single document – violates constitutional standards. In particular, it emphasized the lack of proportionality between a minor formality and the severe financial consequences.
However, this doesn't mean that all cases will be automatically resolved. In practice, much depends on the stage of the proceedings, deadlines, and whether the tax decision has become final. Some taxpayers still face legal uncertainty.
What does this mean in practice?
The most important conclusion is simple: in tax law, it's not just the facts that matter, but also the formalities. Even if someone met all the "real-life" requirements for relief (e.g., actually lived in the premises), the absence of a single document can invalidate their right to relief.
In practice, the risks are specific:
– the obligation to pay 19% tax on sales income,
– accrual of interest for many years back,
– tax proceedings and the need to provide explanations,
– limited possibilities of defense if deadlines are exceeded.
Another common mistake is failing to analyze the regulations in force at the time of property acquisition. However, it is the acquisition date that determines which tax rules apply.
Two situations from practice
Mr. Marek sold the apartment he bought in 2008, convinced he didn't have to pay tax because he'd been registered there for several years. After more than a decade, he received a summons from the tax office – failing to declare the registration tax relief meant he had to pay tens of thousands of złoty plus interest.
Anna, in turn, sold an inherited property and used the proceeds to purchase a new apartment. She was convinced she automatically benefited from tax relief. The problem arose when it turned out she had missed the deadlines for spending the funds – which could also result in tax liability.
How to protect yourself
Every property sale—especially one acquired more than a decade ago—requires individual analysis. Not only regulations are important, but also documents, deadlines, and the taxpayer's prior actions.
In such cases, a law firm helps resolve the situation: it analyzes documents and the property's history, assesses tax risks, develops a strategy, drafts letters and appeals, negotiates with tax authorities, represents the client in proceedings, and ensures deadlines are met and settlements are accurate. The goal is not to promise a specific outcome, but to genuinely protect the client's interests and increase the chances of a favorable resolution.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of April 20, 2026.
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