HiI wonder if someone could clarify the following please....If you buy a property in Poland you're liable for tax of 10% if you sell within 5 years. I always understood this to be 10% on any profit made. The wording of the latest investment pack for the latest Polish deal says "there is no separate capital gains tax in Poland. However, if a property is sold within 5 years of it being built, a 10% tax on the transaction value is payable."This would suggest the tax is on the entire sum, not just the profit.Can anyone give me the definitive answer please?CheersDan

I believe the tax is on the entire sum - unless you reinvest it in Poland within 2 years - so you really need to hold for 5 years.I'm not clear whether the re-investment CGT exemption would allow you to sell one Polish property and use the proceeds to pay off existing mortgages on other Polish properties.Andrew

Hi Dan Your assumption is correct - it's 10% on the whole sum if you sell within five years, UNLESS you undertake to reinvest within two years. Also note that the exemption from the 10% tax starts to run from the time the property is registered in your name. If you sell during the construction phase, you are not technically selling a piece of real estate, so no tax exemption applies whatever undertaking you give about reinvesting. Cheers

Dear Robin - is the 5 years ownership from registration in your name correct, so again you cannot count the construction phase towards your 5 years ? Just wanted to check....thank you