The housing tax relief, formally a tax exemption regulated by Article 21(1)(131) of the Personal Income Tax Act (the PIT Act), makes it possible to reduce the tax burden in such cases and, in certain situations, even avoid paying income tax on the sale of real estate altogether.

As reported by Interia Biznes, the relief is available exclusively to people who have sold a plot of land, house or flat within the last three years and used the proceeds from the sale for their own housing purposes. It is also important that the sale was not connected with business activity.

Ministry of Finance interpretation

The general interpretation issued by the Minister of Finance, Funds and Regional Policy in October 2021 explains which specific expenses for finishing and renovating real estate qualify for the housing tax relief under personal income tax (PIT).

According to the Ministry, expenses on built-in and freestanding household appliances, indoor lighting and custom-made furniture constitute the pursuit of one’s own housing purposes.

This decision is justified by the need to adapt regulations to modern living standards and ensure that a building has the necessary functionality. As a result, taxpayers can more effectively deduct the costs of purchasing, among other things, refrigerators, dishwashers and built-in wardrobes from income earned through the sale of real estate.

Which household appliances can be deducted under the housing tax relief?

Under the housing tax relief (an exemption from personal income tax pursuant to Article 21(1)(131) of the PIT Act), expenses for the purchase and installation of the following household appliances can be deducted, both built-in and freestanding:

  • gas, electric and gas-electric cookers
  • induction and ceramic hobs
  • ovens
  • dishwashers
  • washing machines
  • refrigerators
  • kitchen hoods, including extractor hoods, recirculating hoods and under-cabinet hoods

In addition to large household appliances, the relief also covers expenses for:

  • built-in kitchen furniture, both custom-made and freestanding
  • cabinets forming part of a washbasin mounting unit and supplied as a set with it
  • indoor ceiling and wall lighting, including LED strips and halogen spotlights, excluding freestanding lamps

What cannot be deducted?

The so-called “small household appliances” are excluded from the relief, as they are considered accessories rather than basic furnishing items. This category includes, among other things:

  • coffee machines
  • toasters
  • sandwich makers
  • microwave ovens

How should expenses on household appliances be documented for the tax office?

To document expenses on household appliances in order to claim the housing tax relief before the tax office, it is first necessary to gather appropriate documentation confirming the expenses incurred. The sources provided point to several key aspects that help justify these expenses to the tax authorities:

  • Connection with installation plans: Expenses on devices such as cookers, induction hobs, ovens, dishwashers and extractor hoods are considered to serve a housing purpose because they complete specific installations, such as gas, electrical, water or ventilation systems. Accordingly, the documentation should confirm that these purchases were necessary, reasonable and resulted from installation and connection plans prepared for the property in question.
  • Documenting furniture and built-in fittings: In the case of built-in wardrobes, fitted dressing rooms or custom-made kitchen furniture, the sources emphasise that these items are made to individual order. Documentation, such as contracts with contractors or order specifications, should confirm their permanent connection with the premises and that their functionality is adapted exclusively to the place where they were installed.