Real Estate Guidebook 2017/2018


This is the third edition of our accounting and tax guidebook for the construction and real estate market. The Polish real estate investment market didn’t slow down in 2017 and continues to be attractive to investors. Growth in developers activity can be seen in both the commercial and residential sectors. In the latter, an increasing number of foreign investment funds have started to appear; they are particularly interested in growing their portfolios in the residential rental market that is so popular among Western European investors. The growing share of Polish investors and developers in the real estate market can gain an ally from the REIT Act. On the other hand, with respect to the construction sector, there have been clear signs of recovery, which is promising after a weak 2016.

Our guidebook is designed to assit financial and accounting departments in not only their day-to-day activities but also when facing complex tax and accounting issues when preparing financial statements for the real estate or construction sector. For this reason, this year, we prepared new case studies through which we want to share the practical knowledge that we have acquired recently. We have paid particular attention to some issues, such as VAT reverse charge that had been recently introducted for some certain enumerated construction services, the issues related to the ATAD implementation, and the modification of provisions concerning non-cash contributions with the exception of an enterprise. Additionally, with regard to the ongoing or projected changes in tax law and practice, we have looked at issues such as the planned commercial property tax and its possible impact on investment budgets with respect to buildings and structures, or the announced reduction in the ability to deduct debt financing costs.

The tax solutions were based on the current (as of the date of publication) tax law, taking into account any major changes that were planned or announced for 2017 and 2018, as well as the most current legal interpretation applied by both courts and tax authorities in this respect.