What has changed in the definition of a building in light of the new RET 2025 regulations?
Previous definition
Building – a construction object in the meaning of the Construction Law, which is permanently connected to the ground, separated from space by construction partitions, and has foundations and a roof.
New definition
Building – an object constructed as a result of construction works, together with installations ensuring its use in accordance with its intended purpose, which is permanently connected to the ground, separated from the open space by construction partitions, which has foundations and a roof, with the exception of an installation in which bulk materials, lumpy materials or materials in liquid or gaseous form are or can be stored, the basic technical parameter of which determining its intended use is the capacity.
According to the new definition of a building quoted above, a building for property tax purposes is an object that meets jointly four conditions:
- It is erected as a result of construction work (a concept defined in the RET regulations),
- permanently attached to the ground (a concept defined in the RET regulations),
- separated from space by building partitions, and
- having foundations and a roof.
The installations that ensure that the building can be used as intended are also taxed as part of the building.
The new definition of a building, like the previous one, is based on the premise of a permanent connection to the ground, which is in line with current tax practice. However, in order to limit potential tax disputes, the legislator decided to precisely define the term „permanently attached to the ground” in the law.
At the same time, according to the new regulations, a building is no longer an object that is used or can be used to store loose, liquid, gaseous or particulate materials if its function is mainly determined by its capacity. In practice, this means that objects such as silos, elevators or other types of tanks designed to store goods may lose their building status.
The amended law maintains the existing rule that an object must first be classified as a building. Only if it does not meet the criteria for a building can it be considered a structure. The key point is that an object cannot be both a building and a structure; these categories are mutually exclusive.
What is the new definition of a building under Real Estate Tax 2025?
Previous definition
Building – a construction structure, as defined by construction regulations, that is not a building or a small architectural object, as well as construction equipment, as defined by construction regulations, associated with a construction structure and ensuring the possibility of using the structure in accordance with its intended purpose.
New definition
Building:
- A structure that is not a building as defined in Annex 4 to the law (RET Law – added by the author), including the facilities that ensure its use for its intended purpose,
- wind, nuclear and photovoltaic power plants, biogas plants, agricultural biogas plants, energy storage facilities, boilers, industrial furnaces, cable cars, ski lifts and ski jumps, in the non-building part – only in the scope of their construction parts,
- Building equipment – connection and installation equipment, including equipment for the treatment or collection of wastewaters, and other technical equipment directly related to the building or structure referred to in point (a) and necessary for its use in accordance with its intended purpose,
- technical installations other than those referred to in (a) to (c), only in respect of their structural parts
- foundations for machinery and technical equipment, as technically separate parts of objects forming a functional whole
– erected as a result of construction works, even if they are part of an installation not listed in the act.
At first glance, it is clear that the definition of a structure has changed significantly. The new definition consists of five sub-items listing the categories of structures.
The most important change is the introduction of a catalog of objects that are considered structures in the new Appendix 4 of the Act. The mentioned appendix is divided into 28 items, each of which lists several categories of objects. It includes many objects for which there have been different approaches as to whether they are subject to property tax.
The second category of objects are construction parts of specialized objects (e.g. wind power plants or nuclear power plants), which are enumerated in the definition of a building under letter b).
The third category is construction equipment: connection and installation equipment, including equipment for the treatment or collection of sewage, and other technical equipment directly related to a building or non-building structure listed in Annex 4 to the law and necessary for its use in accordance with its intended purpose.
The fourth category of objects is construction parts of technical equipment other than those listed above.
The fifth category is foundations for machinery and technical equipment that are technically separate from such machinery and equipment.
As can be seen from the above, the definition of a building has been significantly modified by the legislator, resulting in a broadening of the scope of the real estate tax. The legislator used vague terms for some categories of objects and left an open catalogue of objects that can be classified as such (in particular, by using the term „other technical equipment”).
Building or structure – which classification takes precedence?
In the case of objects that can be classified both as a building and as a structure (according to the new regulations), the principle of priority of tax classification of objects as buildings has been maintained. Thus, if an object can be considered both a building and a structure, it will be given priority for classification as a building.
In practice, this means that the taxpayer should first determine whether the object meets the definition of a building and is not excluded from this definition by law. Only if it turns out that the object is not a building should the taxpayer analyze whether it can be considered a structure.
In addition to the amended definitions of building and structure, does the PON 2025 legislation introduce any other new legal definitions?
- Structure
For the purposes of property tax as of 2025, a structure means a building or structure, excluding mining pits, as well as small structures that constitute
- Places of worship – specifically shrines, wayside crosses and statues,
- Garden architecture – especially garden statues and figurines, fountains, bridges, pergolas, brick barbecues and ponds,
- Utilitarian objects used for daily recreation and maintenance – especially garbage cans, shelters for prams and bicycles, and objects used for children’s playgrounds.
- Construction works
For the purposes of the RET Law, construction works are understood to be works of construction, reconstruction, extension, superstructure, reconstruction or assembly, to which the provisions of the Construction Law apply.
The legislator has decided not to use the definition of construction work in the Construction Law.
- Permanent connection of a building to the ground
For the purposes of RET, from 2025, permanent connection of a building to the ground means such a connection of a building to the ground that ensures its stability and ability to counteract external factors independent of human action that could destroy it, cause it to move or shift it to another location.
