Tax on selling a flat within 5 years – how to calculate it
Author: Tacjana MasiukiewiczCosts and taxes~14 min read
If you sell a flat before 5 years have passed, counted from the end of the year in which you bought it, you pay 19% income tax on the income – that is on the difference between the selling price (reduced by the costs of sale) and the documented costs of purchase and outlays. Not on the whole price. Below we show how to count the 5-year period (also for a flat from a developer), what you can deduct, when to file the PIT-39 and how to reduce the tax legally – on the example of a studio in Wrocław bought in 2023.
Key facts
- The tax is 19% of the income (art. 30e of the PIT Act) and is not added to income from work.
- You count 5 years from the end of the calendar year of acquisition: a flat bought in 2023 can be sold without tax from 1 January 2029.
- With a flat from a developer the date of the agreement transferring ownership counts, not the date of the developer agreement.
- The cost of purchase is raised every year by the GUS inflation index (103.3 for 2024, 104.0 for 2025), and outlays on finishing you deduct on the basis of VAT invoices.
- You file the PIT-39 return from 15 February to 30 April of the year after the sale and pay the tax by the same deadline.
When is the sale of a flat within 5 years taxed?
A source of income is the paid disposal of real estate (including a unit), a cooperative ownership right to a unit and a right of perpetual usufruct, if it took place before five years have passed, counted from the end of the calendar year in which the acquisition or construction took place (art. 10 sec. 1 pt 8 lit. a–c of the PIT Act). "A paid disposal" is not only a sale – also an exchange. A gift or inheritance, in turn, is another way of acquiring and other rules for calculating costs; we describe them in the article Selling a flat from an inheritance or gift (in Polish).
Important: you pay tax on the income, not on the proceeds. If you sell for less than you bought (after adding costs), there is no tax – but that loss does not carry over to later years and does not reduce other income (art. 9 sec. 3a pt 1). The 19% rule also does not apply to people who build or sell flats as part of a business – for them it is business revenue (art. 30e sec. 6).
How to count 5 years when selling a flat?
The five years do not run from the date of the deed, but from 31 December of the year in which you bought the flat. The day and month of purchase do not matter: a flat bought on 2 January and one bought on 30 December of the same year are "released" from tax on the same day. That is why a purchase at the end of the year is less favourable for the seller – they wait almost 6 years, not 5.
| Year of acquisition | The last day on which a sale is taxed | A sale without income tax from |
|---|---|---|
| 2020 | 31.12.2025 | 1.01.2026 |
| 2021 | 31.12.2026 | 1.01.2027 |
| 2022 | 31.12.2027 | 1.01.2028 |
| 2023 | 31.12.2028 | 1.01.2029 |
| 2024 | 31.12.2029 | 1.01.2030 |
| 2025 | 31.12.2030 | 1.01.2031 |
| 2026 | 31.12.2031 | 1.01.2032 |
A flat from a developer: the developer agreement or the deed of transfer?
The developer agreement only obliges the developer to build the building, establish separate ownership of the unit and transfer it to you (art. 5 pt 6 of the Developer Act). You become the owner only on signing the agreement transferring ownership. So if you signed the developer agreement in 2021 and the deed transferring ownership in 2023, you count five years from the end of 2023. This is a common trap for people who bought "at an early stage" of construction and assume the deadline has already passed.
Assigning a developer agreement is a different tax
If you do not wait for the deed and "sell" a flat under construction by assigning the rights under the developer agreement, you are not yet disposing of real estate, only of a property right. The PIT Act classifies a paid disposal of property rights other than those named in art. 10 sec. 1 pt 8 lit. a–c under the source "capital and property rights" (art. 10 sec. 1 pt 7). In practice the tax authorities tax such income on the tax scale (12% and 32%), and the 5-year rule and the housing relief do not apply. Before an assignment it is worth applying to the Director of the National Tax Information for an individual interpretation.
How to calculate the 19% tax on selling a flat?
The formula follows from art. 19, art. 22 sec. 6c–6f and art. 30e of the PIT Act:
- Proceeds = the price under the sale contract − the costs of the paid disposal (e.g. an agent's commission, notarial fees if you bear them).
- Deductible costs = documented costs of acquisition (the purchase price and expenses connected with the purchase) raised by the inflation index + documented outlays that increased the flat's value while you owned it.
- Income = proceeds − deductible costs.
- Tax = 19% × income.
The costs of the paid disposal
These are the expenses you bear to sell: the agent's fee, notarial fees (if under the contract you take them on as the seller) and similar transaction costs. Usually the notarial fee for the sale contract is paid by the buyer – what it is you can check in the article The notarial fee 2026. Selling a flat encumbered with a mortgage? We describe the order of repayment and release of security in the guide Selling a flat with a mortgage (in Polish).
Deductible costs: purchase, finishing, indexation
Into the costs of acquisition you count the price from the deed and documented expenses connected with the purchase. Outlays – e.g. finishing a flat bought in stan deweloperski (the developer's standard) – you deduct only when they increased the value of the unit and you have VAT invoices or documents of charges for them (art. 22 sec. 6e). A receipt, a contract with a crew "on trust" or a transfer without an invoice are not enough. What finishing really costs we show in the article How much flat finishing costs in 2026.
A little-known but favourable rule: the costs of acquisition are raised every year by the consumer price index for the first three quarters of the year, from the year following the purchase to the year before the sale (art. 22 sec. 6f). Indexation applies to the costs of acquisition, not to outlays. According to announcements of the President of GUS the index for Q1–Q3 2024 was 103.3, and for Q1–Q3 2025 104.0. How to combine indices from successive years is sometimes disputed, so in the example below we calculate the cautious variant – from the original purchase amount.
An example: a studio in Wrocław bought in 2023 and sold in 2026
Assumptions (indicative): a studio bought from a developer, the deed transferring ownership signed in 2023 for 470,000 zł (our assumption, not market data), plus 2,000 zł of notarial and court costs on purchase. Finishing for 60,000 zł documented by VAT invoices. Sold in 2026 for 595,638 zł – that is the median price of 1-room flats in Wrocław according to data from the TM Invest offer, as of 27 September 2026. The seller pays the agent 2% + 23% VAT, and the buyer bears the notarial fee for the sale contract.
- Costs of the paid disposal: 595,638 × 2% × 1.23 = 14,652.69 zł.
- Proceeds: 595,638 − 14,652.69 = 580,985.31 zł.
- Costs of acquisition: 470,000 + 2,000 = 472,000 zł; indexation for 2024 and 2025: 472,000 × (3.3% + 4.0%) = 34,456 zł.
- Deductible costs: 472,000 + 34,456 + 60,000 = 566,456 zł.
- Income: 580,985.31 − 566,456 ≈ 14,529 zł; tax at 19% ≈ 2,761 zł.
The same transaction may cost several times more if you have no documents or do not add indexation:
| Settlement variant | Deductible costs | Income | Tax at 19% |
|---|---|---|---|
| Only the purchase price and the costs of the deed, no invoices for finishing, no indexation | 472,000 | 108,985 | 20,707 |
| + finishing of 60,000 on VAT invoices | 532,000 | 48,985 | 9,307 |
| + indexation of the cost of acquisition (103.3 and 104.0) | 566,456 | 14,529 | 2,761 |
| + the housing relief: the whole proceeds spent on your own housing purposes in time | 566,456 | 14,529 (exempt) | no tax |
The conclusion: with a flat from the primary market that you finished yourself, the invoices for finishing matter most – keep them for the whole period in which the sale may be taxed, and then for the limitation period of the tax as well.
Thinking of selling within 5 years? We will help you value the flat and carry out the sale – with a realistic transaction price it is easier to calculate how much tax you will pay and whether it is not better to wait until 1 January of the next year.
How much does a studio from a developer in Wrocław cost today?
The selling price in the example is not plucked from the air. According to data from the TM Invest offer, as of 27 September 2026, 265 1-room flats are available in Wrocław, with a median area of 32.4 m² and a median price of 17,782 zł/m². The medians in districts are a point of reference for a buyer comparing your studio with new units (asking prices, not transaction prices of the secondary market):
| District | Number of available 1-room flats | Price from | Median price |
|---|---|---|---|
| Fabryczna | 6 | 335,315 | 403,470 |
| Krzyki | 61 | 439,247 | 525,512 |
| Stare Miasto | 119 | 443,374 | 596,606 |
| Śródmieście | 50 | 475,718 | 621,810 |
| Psie Pole | 29 | 491,900 | 624,103 |
| Wrocław – total | 265 | 335,315 | 595,638 |
PIT-39 – when to file and when to pay the tax?
You settle a sale within 5 years in a separate return, the PIT-39 – not in the PIT-37 or PIT-36. You file it in the period from 15 February to 30 April of the year following the year of sale (art. 45 sec. 1 and 1a pt 3), and a return filed earlier is deemed filed on 15 February. You pay the tax before the deadline for filing the return expires, that is also by 30 April (art. 45 sec. 4 pt 4). During the year you pay no advances, and the notary does not collect this tax at the deed.
You also file the PIT-39 when a loss results or when you use the housing relief – the exempt income also has to be stated (art. 30e sec. 4). If you later do not spend the money on housing purposes in time, you must file a correction and pay the tax with late-payment interest (art. 30e sec. 7).
How to legally avoid or reduce tax on selling a flat?
- Wait until 1 January. Sometimes it is enough to move the sale deed by a few weeks to get outside the 5-year period – check the table above.
- Use the housing relief. The income is exempt to the extent that you spend the proceeds on your own housing purposes within 3 years of the end of the year of sale (art. 21 sec. 1 pt 131) – e.g. on buying a new flat or repaying a home loan taken before the sale. We describe the conditions and traps in the article The housing relief 2026.
- Collect invoices. Finishing, built-in work, work that raises the unit's value – everything with a VAT invoice lowers the income.
- Add indexation of the cost of acquisition by GUS indices for every full year of ownership.
- Deduct the costs of sale – the agent's commission and fees you actually bear as the seller.
Do not understate the price in the deed. If the price without a justified reason departs significantly from market value, the office may set it itself, and where an expert's valuation differs from the price by at least 33%, the costs of the opinion are borne by the seller (art. 19 sec. 1 and 4). Selling to buy a larger flat? See how to coordinate selling the old flat with buying the new one (in Polish), and you will find all the costs of buying from a developer in the guide The costs of buying a flat from a developer 2026.
Read also:
- Selling a flat step by step – documents, taxes, contracts
- An estate agency's commission – how much it is (in Polish)
Frequently asked questions
Do I pay 19% on the whole price when selling a flat within 5 years?
No. You pay 19% on the income, that is on the selling price reduced by the costs of sale, the documented cost of purchase (with indexation) and outlays confirmed by VAT invoices. If there is no income, there is no tax.
From when do I count 5 years with a flat from a developer?
From the end of the year in which you signed the agreement transferring ownership (the notarial deed after handover), not the developer agreement. With a deed of 2024 a sale without tax is possible from 1 January 2030.
Do the costs of finishing a flat lower the tax on a sale?
Yes, if they increased the flat's value and you have VAT invoices for them. Expenses without invoices – even documented by a transfer or receipt – are not counted as outlays.
Do I have to file a PIT-39 if I sold a flat at a loss?
Yes – the return concerns the income or loss from sales in the given year. A loss on the sale of a flat does not, however, reduce income of other years or from other sources.
By when do I pay tax on the sale of a flat?
By 30 April of the year following the year of sale – you file the PIT-39 by the same deadline. For a sale in 2026 the deadline expires on 30 April 2027.
Does the assignment of a developer agreement also benefit from the 5-year rule?
No. An assignment is a disposal of a property right, not of real estate, so it does not fall within art. 10 sec. 1 pt 8 lit. a–c. Income from an assignment is in practice taxed on the tax scale, with no housing relief.
Summary
Selling a flat before 5 years have passed (counted from the end of the year of acquisition) means 19% tax on the income, settled in the PIT-39 by 30 April of the next year. With a flat from a developer the period runs from the deed transferring ownership. The example of a Wrocław studio shows that invoices for finishing and indexation of the purchase cost can lower the tax from about 20.7 thousand zł to about 2.8 thousand zł, and the housing relief can eliminate it altogether.
Planning a sale? Book a valuation and sale of your flat with TM Invest – we work in Warsaw and Wrocław, on the market since 2016. If you want to buy a new flat with the money from the sale, we will help you choose a unit from a developer – most often without a commission for the buyer, as the fee is usually paid by the developer.
Legal status as of September 2026. The calculations are indicative, rest on the assumptions described in the example and are not tax advice. In atypical cases (an assignment, co-ownership, selling part of the shares) consult a tax specialist.
Sources
- Personal Income Tax Act – consolidated text, Journal of Laws 2026 item 592 (art. 9 sec. 3a, art. 10 sec. 1 pt 7 and 8, art. 19, art. 21 sec. 1 pt 131, art. 22 sec. 6c–6f, art. 30e, art. 45).
- Act on the Protection of the Rights of a Purchaser of a Residential Unit or Single-Family House and on the Developer Guarantee Fund – consolidated text, Journal of Laws 2026 item 880 (art. 5 pt 6).
- The podatki.gov.pl service – Disposal of real estate.
- Ministry of Finance – information brochure for the PIT-39 for 2025
- GUS – the consumer price index for Q1–Q3 2024 (103.3)
- GUS – the consumer price index for Q1–Q3 2025 (104.0)
- Flat prices: the TM Invest catalogue of developments, as of 27 September 2026.
