From this article you will learn:
- What is a Real Estate Company?
- Who is subject to the reporting obligation?
- Technical procedure: CIT-N1 and CIT-N2 declarations
- Critical barrier: NIP and PESEL for non-residents
- By when must the report be filed and what are the sanctions?
- How to report a real estate company in 4 steps
- What’s next?
- Why is it worth verifying real estate company status already now?
Why is it worth verifying real estate company status already now?
The beginning of the year is often the last moment to verify, without the pressure of deadlines, whether your organization is subject to stringent reporting obligations. Of key importance is the assessment of the share of real estate in the company’s assets as well as the structure of its revenues. Failure to perform this verification at a sufficiently early stage may result in the timely fulfillment of obligations becoming impossible due to the time-consuming nature of data collection processes within international structures.
What is a Real Estate Company?
The definition of a real estate company includes entities required to prepare financial statements (a balance sheet) pursuant to accounting regulations, which meet specific asset-based and revenue-based tests. These criteria differ depending on whether the entity is just commencing its business activity or continuing its operations.
| Criterion | Entities Commencing Activity | Entities Continuing Activity |
| Verification date | First day of the tax year | Last day of the year preceding the tax year |
| Asset test | Real estate in Poland (directly/indirectly) = at least 50% of assets | Book value of real estate in Poland = at least 50% of assets |
| Market/book value | Total value exceeding PLN 10 million | Total value exceeding PLN 10 million |
| Revenue test | No criterion | At least 60% of revenues from lease, tenancy, or disposal of real estate |
Important: For reporting due in 2026, the above conditions are verified as at the last day of 2024 (assuming a tax year aligned with the calendar year).
Who is subject to the reporting obligation?
The information obligation is twofold and rests with:
- Real estate companies – reporting data on their shareholders.
- Taxpayers (shareholders) – holding, directly or indirectly, at least 5% of voting rights, profit participation rights, or participation titles in such a company.
Multi-tier structures constitute a particular challenge. Indirect shareholdings are determined in accordance with transfer pricing regulations, which in complex capital groups requires a precise review of the entire chain of relationships.
Technical procedure: CIT-N1 and CIT-N2 declarations
Reporting is carried out exclusively in electronic form using dedicated forms:
- CIT/PIT-N1: Filed by the real estate company; indicates direct and indirect shareholders.
- CIT/PIT-N2: Filed by shareholders (direct and indirect) holding more than 5% of the rights.
Critical barrier: NIP and PESEL for non-residents
The most common reason for missing deadlines is the requirement to hold a Polish tax identification number. Foreign entities filing CIT-N2 must have a NIP, and foreign individuals must have a PESEL number. The process of obtaining these identifiers for non-residents may take many weeks; therefore, their verification should be carried out well in advance.
By when must the report be filed and what are the sanctions?
For entities whose tax year coincides with the calendar year, the reporting deadline for real estate companies expires at the end of the third month following the end of the year—i.e., no later than 31 March 2026.
Failure to comply exposes individuals responsible for financial matters to fiscal penal liability. Sanctions under the Fiscal Penal Code (KKS) may be financially severe and apply directly to members of the management board.
How to report a real estate company in 4 steps
- Status audit: Confirm whether you meet the definition of a real estate company based on historical data.
- Group structure review: Identify indirect and direct shareholders subject to reporting.
- Identifier verification: Check whether foreign entities hold the required NIP/PESEL numbers.
- Submission of forms: Prepare and submit the declarations electronically, observing the statutory deadline.
What’s next?
Do not risk errors in a complex multi-tier structure. At KR Group, we provide comprehensive support in identifying obligations and ensuring accurate and timely reporting to the tax authorities. We invite you to contact us.
