Property sales: Tax authorities unlawfully restrict preference for heirs

Polish tax authorities are reportedly unlawfully restricting a tax preference intended for heirs selling inherited property. This preference allows for exemption from personal income tax (PIT) on property sales if the property has been held for a minimum of five years.

The core of the dispute lies in the interpretation of the five-year holding period. Heirs argue that the period should encompass the time the property was owned by all successive inheritors, not solely the duration of ownership by the most recent heir. This interpretation aims to ensure the tax benefit is applied fairly across multiple generations of inheritance.

This stance by the tax authorities, if unlawful as suggested, could create significant financial burdens for individuals who inherit and subsequently sell property. The Rzeczpospolita newspaper highlights this issue, suggesting a potential misapplication of tax law that disadvantages beneficiaries of inherited estates.