Poland: Property tax exemption does not appear to constitute illegal State aid (CJEU judgment)
Exemption does not appear to confer selective advantage, but national court ultimately must decide the issue.
The Court of Justice of the European Union (CJEU) today held (C-453/23 Prezydent Miasta Mielca)—in response to a referral from the Polish Supreme Administrative Court—that the Polish property tax exemption for land equipped with railway infrastructure made available to rail carriers does not appear to constitute illegal State aid, but it is up for the national court to ultimately decide the issue.
As explained in a CJEU release, the CJEU found that the property tax exemption does not appear to confer a selective advantage because it does not appear to be connected with the specific characteristics of the undertakings benefiting therefrom or of their activities; nor does it appear to be part of a manifestly discriminatory system. Based on a neutral criterion, it applies to various taxpayers, including undertakings of different sizes and from different sectors, as well as noneconomic entities. Moreover, it serves both a budgetary and environmental objective. Nonetheless, it is for the national court to ultimately decide whether the exemption does or does not confer a selective advantage and thus could be considered illegal State aid.
Read a May 2025 report prepared by KPMG's EU Tax Centre