Housing Tax Relief in PIT – New Rules from 2026 and Their Impact on Real Estate Investments

How does the housing relief work today?

Selling a property within 5 years from the end of the year it was purchased triggers a 19% PIT tax. However, the tax can be avoided if the proceeds are reinvested within 3 years into personal housing needs.

So far, tax interpretations have allowed a broad understanding of these needs, even including the purchase of multiple apartments, as long as they were linked to residential purposes.

What will change in 2026?

The Ministry of Finance intends to restore the original purpose of the relief – supporting taxpayers genuinely meeting their own housing needs. From January 1, 2026, the benefit will apply only to taxpayers who:

• do not own other residential properties or transfer them to close family members (Group I), the State Treasury, or municipalities,

• do not hold cooperative ownership rights to a flat or house (or transfer them accordingly),

• spend the proceeds on purchasing a property, land for construction, or repaying a mortgage – under additional conditions.

The new regulation will apply to those holding 50% or more ownership in a property. Exceptions include one property under marital joint ownership and properties acquired through inheritance.

Purpose and potential market effects

The aim of the reform is to tighten the tax system and bring housing relief back to its original intent – supporting those addressing their primary housing needs rather than property investors.

The new rules will come into force on January 1, 2026, and will only apply to properties purchased after December 31, 2025.

Will the changes slow down real estate investments, or will the transition period trigger a buying spree in Q4 2025?

For more details, contact Marta Chacińska – Manager in the People Advisory Services team.