Real estate tax affects many entrepreneurs, yet its rules can be confusing — especially when you run your business from your own home. We explain everything you need to know.
Real estate tax is one of those obligations that entrepreneurs often overlook or settle incorrectly. Meanwhile, municipalities are scrutinising filings with increasing care, and an incorrect classification of a property can result in an additional payment plus interest. In this article we explain when a property is subject to the higher business rate, how the settlement works for a business run from a residential flat, and what to pay particular attention to when submitting your declaration.
Real estate tax is governed by the Act on Local Taxes and Charges. The taxpayer is the owner of the property, the perpetual usufructuary, or the independent possessor. The following are subject to taxation: • land, • buildings or parts thereof, • structures connected with the conduct of business activity. The key distinction is this: a private property and a business property are two different tax categories. Rates for properties used in business activity are significantly higher than residential or agricultural rates. Correct classification therefore has a direct bearing on the amount of the liability.
Real estate tax rates are set by the municipal council, but their upper limits are announced each year by the Minister of Finance. In 2026 the maximum rates are as follows: • residential buildings — a few dozen groszy per 1 m², • buildings connected with business activity — several złoty per 1 m² (a rate that is many times higher), • land used for business activity — a rate per 1 m² of land, • structures — 2% of their value per year. The specific amounts applicable in your municipality can be found in the municipal council resolution or on the local authority's website. The difference between the residential and business rate can be several times greater, which is why an incorrect classification generates real costs.
Many entrepreneurs register their business at their home address. Does this automatically mean the higher rate applies to the entire flat? Not necessarily. In line with well-established case law and interpretations issued by tax authorities, the higher rate applies exclusively to that part of the flat which is actually used for carrying out business activity. This means that if you designate one room as an office, only its floor area should be taxed at the business rate. Practical rules: 1. Calculate the floor area of the room designated for business activity. 2. Submit an amendment or a new DN-1 declaration to the municipal office. 3. Retain documentation confirming the actual use of the rooms. Avoid declaring the entire floor area of the flat at the business rate — this is an error that generates an overpayment. Equally risky is failing to declare any business floor area at all.
Entrepreneurs who are legal entities (e.g. sp. z o.o.) submit the real estate tax declaration DN-1 by 31 January of each year for the given tax year. Where a property is acquired during the year, the deadline is 14 days from the date on which the circumstances giving rise to the tax obligation occur. Natural persons running a sole trader business (JDG) submit the IN-1 information form, on the basis of which the municipality issues a decision determining the amount of tax. The tax is paid in instalments: • for legal entities — monthly by the 15th day of each month, • for natural persons — in four instalments (March, May, September, November). Failing to submit the declaration or providing false data may result in liability under the Fiscal Penal Code.
Based on the practice of accounting firms, several recurring errors can be identified: • Failure to update the declaration after a change in the way the property is used — for example, when a room ceases to serve business purposes. • Confusing the concept of a structure with a building — structures (sheds, silos, car parks) are settled differently from buildings. • Failure to account for property held under a leasing agreement or perpetual usufruct — in many cases it is the lessee or the perpetual usufructuary who is the taxpayer. • Omitting the tax obligation in the case of seasonal business activity — a property occupied for business purposes even for part of the year may be subject to taxation for the entire year. Each of these mistakes can result in a tax arrear together with interest.
Real estate tax may appear to be a straightforward obligation at first glance, but where a property has a complex purpose, where business is conducted in part of a residential flat, or where property is held under different legal titles (ownership, leasing, perpetual usufruct), classification can be far from obvious. Consulting an adviser or an accounting firm is particularly advisable when: • you are starting to run a business from your home or are changing the scope of that activity, • you are purchasing or renting a property for business purposes, • you receive a summons from the municipal office requesting clarification of a submitted declaration, • you are planning to extend or change the way a building is used. Early verification is always less costly than a subsequent amendment with interest.
Real estate tax in business activity requires careful classification of floor area and timely submission of declarations. Errors in this area can be costly. If you have any doubts about the correct settlement — contact the Danexis accounting firm in Wrocław. Call +48 780 760 666, write to kontakt@danexis.pl, or visit us at ul. Braniborska 74/20 We will help you assess your situation and ensure your settlements are correct.