RE Flash | May 2026
We invite you to read the latest May edition of Real Estate Flash.
In this issue, we present recent case law of the Supreme Administrative Court and regional administrative courts, as well as the latest tax rulings issued by the Director of the National Tax Information concerning the real estate sector, business restructurings, withholding tax, VAT and cross-border taxation.
This overview covers key decisions from the past month that may have a significant impact on developers, funds, investors, real estate managers, real estate companies and multinational business groups.
🔍 Key Topics – May
In this issue, we discuss, among others:
Advocate General’s Opinion on WHT Exemption for Dividend Payments
Advocate General Juliane Kokott’s Opinion in case C-203/25 NEO Group suggests that the mere onward distribution of dividends by a parent company should not, in itself, constitute an abusive arrangement for withholding tax exemption purposes. The Opinion emphasises that matching amounts and close timing of payments are neither sufficient nor necessary indicators of abuse, while the decisive factor is the genuine purpose of the structure and whether it enables the ultimate beneficiary to avoid taxation.
Annual VAT Adjustment Following the Acquisition of an Organised Part of an Enterprise (ZCP) – One Ratio for the Entire Year
The Supreme Administrative Court confirmed that an acquirer of an organised part of an enterprise, when making annual and multi-year VAT adjustments, must determine a single final proportional deduction ratio based on the combined entity’s annual turnover. VAT regulations do not allow the use of separate partial ratios for individual periods or separately for the entities involved in the transaction.
Facade Design Services and VAT Place-of-Supply Rules
The Regional Administrative Court in Warsaw ruled that design services relating to façade elements prepared on the basis of a universal template do not constitute services connected with immovable property. The absence of a sufficiently direct link with a specific property means that such services are taxed under the general VAT rules, confirming the main contractor’s right to deduct input VAT.
Return of Expropriated Property Outside the Scope of VAT
The Regional Administrative Court in Wrocław confirmed that a municipality returning expropriated property to its former owner does not act as a VAT taxpayer. The lack of freedom to choose the counterparty and the statutorily prescribed method for determining consideration mean that such a transaction falls outside the scope of VAT.
Spin-Off of an Organised Part of an Enterprise Without Taxable Income for the Demerged Company
The Director of the National Tax Information confirmed the tax neutrality of a spin-off where both the transferred and retained assets constitute organised parts of an enterprise and the restructuring is supported by valid economic reasons. The ruling is particularly relevant for planning business reorganisations and share deal transactions.
📌 These are only selected highlights – the full edition includes detailed analyses of the latest judgments, tax rulings and opinions that may have a practical impact on investment structuring, business reorganisations, tax settlements and ongoing decision-making in the real estate and cross-border business environment.
