According to Accreo Taxand the effective tax rate on commercial property investments in Poland is the lowest in Europe. The firm have analysed tax rates in 23 countries. The actual amount of the tax, which must be paid on Polish market by the investor, amounts to 4.3 per cent and is about a half of the average of 9.5 per cent, which is indicated by the report.
Among the most attractive countries for investments in commercial properties Poland came in third place, next to Cyprus (2 per cent) and Romania (4 per cent). Investors located in the following countries have to hand over the most to the state: Norway (21.2. per cent), Malta (18.9 per cent), Brazil and India (15.0 per cent) as well as USA (14.7 per cent).
In Poland, the effective tax rate of housing properties amounted to 11.04 per cent. Only Britain (6.39 per cent) and Malaysia (5.34 per cent) have lower taxes in this sector.
Accreo Taxand’s report took into account the actual tax rate, which the investors have to transfer to the state budget. Thus, the deductions from the tax were included. Our country owes such a good result to the low income tax as well as possibility to deduct VAT from commercial investments or leasing.