POLAND Law and Practice Contributed by: Michał Wielhorski, Mateusz Prokopiuk, Małgorzata Wąsowska and Klaudia Michalec, act legal Poland
6.10 Payment of Utilities and Telecommunications
at the standard rate of 23%. Short-term rentals may be taxed with 8% VAT. 6.8 Costs Payable by a Tenant at the Start of a Lease As mentioned in 6.4 Typical Terms of a Lease , in the market practice of commercial leases, addi - tional service charges are standard. They include the tenant’s share of the costs of the day-to- day operation and maintenance of the building in which the premises are located. These costs may include cleaning of common areas, security guard service, maintenance and repairs, energy consumption in common areas, and building insurance. They are set at the level of the entire building and distributed proportionally among the tenants, usually on the basis of the space occupied. Sometimes the rent is set on an “all- in” basis, already including service charges. In addition to common costs, the tenant also bears individual charges – ie, those resulting from the consumption of utilities on the premises (eg, electricity, water, gas and heating), as well as a charge for waste disposal. These costs are charged separately, according to meter readings or on the basis of separate agreements conclud - ed with utility providers. Furthermore, in the case of leasing premises in a shopping centre, it is common for a so-called advertising fee to be paid by the tenant for the common promotional activities of the facility. 6.9 Payment of Maintenance and Repair Although it does not result directly from legisla - tion, it is common practice for parties to a com - mercial lease to agree that costs related to the maintenance and repair of common parts of the property (eg, car parks or green areas) are gen - erally borne by tenants as part of the so-called service charges.
Although it does not result directly from leg - islation, it is common practice for parties to a commercial lease to agree that costs related to utilities and telecommunications (eg, water and electricity consumption in common areas, as well as heating, ventilation, air conditioning, sewage disposal, or access to common telecommunica - tions systems) are generally borne by tenants as part of the so-called service charges. 6.11 Payment of Property Taxes The payer of real estate tax in Poland is the owner of the property, unless it is in so-called autonomous possession – in which case, the tax obligation shifts to the possessor. A tenant, as a dependent possessor, is not a taxpayer. However, in practice, real estate-related taxes are often contractually transferred to tenants via lease agreement. These costs are effectively passed on to tenants as part of monthly service charges. 6.12 Insurance Issues As a general rule, the obligation to insure build - ings rests with landlords. Therefore, landlords bear the cost of an insurance policy covering the property as a whole. At the same time, tenants are usually required – also at their own expense – to take out individual insurance covering any fortuitous events (such as fire, flood, explosion, or storm) and mov - able property located in the leased premises, as well as third-party liability policies related to the business conducted. If fit-out work is carried out on the premises, tenants may additionally be required to take out specialised CAR (contrac - tors’ all risks)/EAR (erection all risks) insurance, covering construction and assembly risks.
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