Which industrial installations are subject to real estate tax?

The real estate tax regulations in force from 2025 have affected the industrial sector. In this and a series of subsequent articles, we will highlight the issues most frequently identified by MDDP experts as affecting industry.

Are industrial installations considered buildings?

The change in the definition of a structure and a building means that facilities and equipment that were not subject to property tax until the end of 2024 may be considered items that must be reported in a tax return. This problem affects, among others, technological installations in industrial plants.

An industrial installation will certainly be treated as a structure taxable on its value if it is:

• free-standing and
• permanently attached to the ground.

This follows directly from the definition of a structure, specifically from item 25 of Appendix 4 to the Act on Local Taxes and Fees.

In other cases, it must be determined whether a installation in question ensures the possibility of using as intended:

• a building – then the installation in question will not be subject to taxation as a structure;
• another structure listed in Appendix 4 to the tax law – then the installation should be taxed on its value.

In practice, there are cases where a fixed asset called an installation includes both pipelines that are part of a process network rather than an installation, as well as cables or equipment that are not part of such a network. In this situation, only parts of the fixed asset will be taxed as a structure.

What is the tax on installations in a sewage treatment plant?

The legislator has treated some installations that are part of a sewage treatment plant separately, specifically:

• sludge dewatering installation;
• degassing installation.

Therefore, entrepreneurs who have sewage treatment plants operating as part of a larger production plant, but also as independent industrial sewage treatment plant complex, should verify the existence of the aforementioned installations, which are very likely to be considered as structures by the tax authorities.