Significant tax changes expected for real estate companies in Poland from 2021/22 #8211; International Tax Review

The real estate clause is to be introduced to the Polish-Dutch tax treaty (most probably from 2022) and other changes to taxation of income from sale of real estate companies are intended to be implemented in Poland in 2021.

Real estate clause in the
Polish-Dutch tax treaty

On October 29 2020, a protocol was signed based on which the Polish-Dutch tax treaty is to be reshaped (the changes will be effective most probably starting from 2022). A major change is the introduction of so called ‘real estate clause’. At present, as long as a Dutch shareholder is managed from the Netherlands and has relevant substance – office, personnel, equipment etc., a sale of shares in the Polish real estate rich company is not taxable in Poland.

According to the changes, gains derived by a Dutch company from the alienation of shares in a Polish real estate rich entity, may be taxed in Poland