Selling an apartment before 5 years: File your PIT-39

Selling an apartment within 5 years of acquisition is a transaction that requires careful tax settlement. Are you wondering which taxes you need to account for in your budget when selling an apartment before the 5-year mark? Understanding the regulations allows you to legally avoid the tax or significantly reduce it. Check how to correctly file your PIT-39 and how the housing relief works.

Property sales tax: general rules

The paid disposal of real estate before the end of the 5th calendar year following the year of acquisition is subject to a 19% PIT tax. If you sell the property after this period, the transaction is completely tax-exempt. It is worth tracking current apartment listings to better understand market dynamics before making a decision to sell.

The 5-year period and the tax year

The end of the calendar year in which the property was acquired is the key factor. For example, if you bought a unit in March 2022, the 5-year period begins on January 1, 2023, and ends at the end of 2027. Only from January 1, 2028, will the sale be tax-free.

How to calculate income from the sale?

Tax is paid on income, not on revenue. Income is the difference between revenue (the sale price) and the costs of obtaining that revenue.

Revenue: The sale amount specified in the contract.

Costs of obtaining revenue: Purchase price, notary fees, PCC tax, and documented modernization expenses (e.g., renovation invoices).

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If the sum of costs exceeds the revenue, no income is generated, so you do not pay tax. Detailed information regarding settlements can be found on the Ministry of Finance website and the podatki.gov.pl portal.

Housing relief: how to avoid tax?

If you generate income, you can take advantage of an exemption known as housing relief. To do this, you must spend the funds on your own housing needs within 3 years from the end of the tax year in which the sale took place.

Own housing needs include:

Buying a new apartment or house.

Building or expanding a property.

Repaying a mortgage loan taken out for your own housing needs.

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When planning a reinvestment, it is worth browsing apartments for sale in Warsaw to find a property that meets your expectations.

Reporting obligation: PIT-39

Even if you spend all your income on housing needs and do not pay tax, you must file a PIT-39 declaration with the tax office. The document must be submitted by April 30 of the year following the sale.

Remember the documentation

Keep invoices, contracts, and bank transfers for 3 years. They are essential to prove your right to the relief in the event of a tax audit.

Summary: most common mistakes

Incorrect calculation of the 5-year period: Remember that we count years from the end of the calendar year of acquisition.

Lack of invoices: Missing documentation for renovations inflates taxable income.

Failure to file PIT-39: Not filing the declaration carries the risk of a penalty, even if there is zero tax to pay.

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If you are planning to sell or buy, check the current real estate offers on dimdom, which will help you make a decision. You can also contact professionals from a real estate agency who will help you navigate the transaction process without unnecessary complications.