MDDP advised LifeSpot on its latest project on the PRS market

MDDP experts provided tax advisory support to LifeSpot in a transaction concerning the acquisition of a land plot in Warsaw, where a new Private Rented Sector (PRS) project is set to be developed. This marks another investment by LifeSpot in the capital, with its portfolio set to grow by more than 500 units as a result.

The purchaser received comprehensive tax and financial advisory services throughout all stages of the transaction. The tax team was led by Piotr Paśko, supported by Sebastian Serowik, Tomasz Janik, Justyna Adamska, Maksymilian Włodarczyk, Martyna Woźnica, Paweł Goś, Agnieszka Telakowska-Harasiewicz, Dorian Jabłoński and Adrian Mroziewski. Financial advisory was led by Łukasz Zabłocki, Partner in MDDP’s Corporate Finance team.

This is yet another transaction in which LifeSpot has relied on MDDP’s tax expertise – a testament to the strong market position and trust the MDDP Real Estate Team enjoys within Poland’s living sector.

MDDP’s Advisory in the PRS and PBSA Sectors

Despite a slowdown in the real estate market and a decrease in transaction volumes, MDDP provided support in 2024 for several high-profile deals in the Private Rented Sector (PRS) and Purpose-Built Student Accommodation (PBSA) sectors, including:

• European Student Housing Fund II – advisory on the disposal of a PBSA project located on Ciołka Street in Warsaw,

• Student Depot – support in the acquisition of a development plot in Warsaw’s Wola district,

• Xior Student Housing – advisory on the acquisition of the LivinnX student housing project in Kraków,

• White Stone Development and Nrep – support on a PRS investment in Warsaw’s Bielany district.

Led by Justyna Bauta-Szostak, MDDP’s real estate team has been advising leading players in the PRS and PBSA sectors since their inception in Poland, offering end-to-end tax advisory services – from selecting the optimal legal structure for the investment to ongoing support tailored to the specific nature of these markets.

The PRS and PBSA sectors are rapidly expanding in response to structural shortages in rental housing. At the same time, tax regulations surrounding these sectors remain unclear, creating interpretative risks that impact the tax security of market participants. For instance, residential lettings, short-term accommodation services and commercial leases are treated as three distinct VAT categories – each with its own applicable rate. Tax authorities also vary in their approach to the VAT treatment of construction services, which has become particularly problematic for student housing developers in recent months.

MDDP Real Estate Team

MDDP’s Real Estate Team comprises 45 professionals – making it one of the largest and most experienced real estate tax advisory teams in Poland. It provides tax, financial, and legal support at every stage of the investment process, advising developers, investment funds, leasing companies and private investors from project inception to exit.

The team has advised on hundreds of transactions and flagship investment projects in Poland and across Central Europe in sectors including residential, office, PRS, PBSA, logistics, retail, hospitality, senior housing and renewables. Advisory covers tax structuring, financing, development, commercialisation, and divestment.

Beyond transactional support, MDDP also represents clients in tax proceedings – particularly regarding withholding tax (WHT) – and contributes to shaping sound legislation. MDDP supports the Polish Association of Developers in the PRS area and participates in legislative work on key real estate regulations (including REITs, property tax, and WHT rules).