Selling an apartment can be stressful, but just as important as finding a buyer is properly analyzing the tax consequences of the transaction. Contrary to what many think, you don’t always have to pay 19% income tax. When can it be avoided? What documents are needed? And what are the risks of making mistakes? Below you’ll find a complete guide to PIT on property sales.

When is PIT due?

Personal Income Tax (PIT) is due when selling:

• real estate or a part of it,
• cooperative ownership rights to a residential or commercial unit,
• rights to a single-family home in a housing cooperative,
• perpetual usufruct rights to land,

if the sale occurs within 5 years from the end of the calendar year in which the property was purchased or built, and if it was not part of a business activity.

How is the 5-year period calculated?

The 5 years are counted from the end of the year in which the property was bought or built.
Example: if you purchased an apartment in June 2020, the 5-year period ends in December 2025 – so selling it in 2026 will be tax-free.

In the case of inherited property, the 5-year period is calculated from the date the property was acquired by the deceased, not the heir. This favorable rule often allows for tax-free sales of inherited apartments.

When is PIT not payable?

• After 5 years from purchase or construction,
• If the proceeds are used for personal housing purposes – the so-called housing relief.

To benefit from the housing relief:

• you must allocate the revenue (not income!) from the sale to housing purposes,
• and incur the related expenses within 3 years from the end of the tax year in which the sale occurred.

Qualifying housing purposes include:

• buying an apartment, house, or land for construction,
• building, adapting, or renovating your own property,
• purchasing built-in appliances or furniture (e.g. fitted kitchen),
• repaying a housing loan (principal + interest).

These expenses can also be incurred abroad, provided the tax office can verify the information.

How to calculate taxable income?

Income = Sale revenue – Cost of acquisition ± depreciation

Revenue is the sale price minus transaction costs (e.g. notary fees, agency commissions).

Costs of acquisition include:

• purchase price from the notarial deed,
• notary fees, PCC,
• documented improvements (renovation, remodeling, adaptation – based on invoices),
• in the case of inheritance – inheritance tax and expenses incurred by the deceased.

PIT-39 Form

If the sale occurred within 5 years and housing relief conditions were not met, you must file PIT-39 by April 30 of the year following the tax year of the sale.

The tax rate is 19% of the income, payable by the same deadline.

If you declare tax-exempt income in PIT-39 (e.g. based on housing relief) but fail to meet the requirements within the given time, you’ll need to file a correction and pay tax with interest.

What are the penalties for mistakes or failure to report?

• Not filing PIT-39 or hiding income may result in tax offense charges.
• Underreporting income leads to back taxes and interest.
• Incorrectly applied relief can be revoked and lead to additional tax charges.

Summary

Selling an apartment doesn’t always mean you have to pay tax. It’s worth carefully checking the purchase date, considering the housing relief, and properly documenting your expenses. If in doubt, consult a tax advisor – mistakes can be costly.

Remember: the deadline to submit PIT-39 and claim any applicable reliefs is April 30.

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Need individual support? Visit our FPD accounting office in Kielce – our experts are ready to help you with tax returns and financial management. We’re happy to assist!

Author: I. Anioł
Source: https://www.podatki.gov.pl/pit/rozliczenie-ze-sprzedazy-domu-mieszkania