Notary costs
Depending on the type of notarial service performed, the parties can be obliged to bear a few kinds of notary costs, such as:
1. A renumeration due to a notary for performing a notarial act (the so-called notary fee). Its maximum level is regulated by law and depends on the type of notarial service. It is payable together with the value-added tax (VAT), the rate of which is 23%.
2. Additional notary fee for issuing certified copies of a notarial act. Its level is regulated by law. Sometimes a notary is obliged by law to issue and submit additional copies of a notarial act directly to various authorities (e.g. the head of the tax office).
3. A court fee for submitting an application to the land and mortgage register. Its amount is also determined by law. The party pays a court fee to the notary, who transfers money to the bank account of the court.
4. Taxes which a notary is obliged to collect on behalf of a state or commune authority, such as inheritance and gift tax or civil law activities tax (transfer tax). Their rates are regulated by law. The party obliged pays the tax to the notary, who transfers money to the tax office.
Some notarial services can involve all these fees (e.g., sale of real property on the secondary market). Others may concern just the notary fee, because they are not the basis for the application to the land and mortgage registers and do not relate with the above-mentioned taxes (e.g. a power of attorney).
Among the notary costs is a notary fee, The maximum level of the notary fee is subject to the Regulation of the Minister of Justice of 28 June 2004. A notary may not charge a fee higher than provided for in this regulation. However, he may charge a lower fee. The level of fee, within these limits, is determined by a notary individually in each case, taking into account its complexity. In case of sale or gift of real property, the maximum rate of the notary fee is usually 1 010 PLN + 0.4% of the excess between a transaction value and 60 000 PLN, with the majority of contracts regarding apartments being charged only half of this sum. For example, if a transaction value is 400 000 PLN, the maximum notary fee is 1 185 PLN. The maximum fee for some notarial services is a fixed sum, e.g. for a prenup 400 PLN; for a will – varies from 50 to 300 PLN; for notarial certificate of inheritance – varies from 150 to 200 PLN; for submitting an application to the land and mortgage register – 200 PLN. Each sum is payable together with the value-added tax (VAT), the rate of which is 23%.
According to the Art. 89 § 1 of the Act of 14 February 1991 – Law on Notaries, the parties to a notarial act are jointly and severally liable for the notary fee. The parties may agree which of them bears this fee. Other notary costs can charge diffrent persons (e.g., taxes are paid by the person acquiring property).
Notary costs, separate from the notary fee, are fees for a certified copy of a notarial act is 6 PLN for each started page, therefore the total sum depends on the length of the notarial act and the number of copies issued. For example, a power of attorney may have 2 pages, and its copy will be issued only to the representative, which would give the sum of 12 PLN plus 23% VAT. However, an act with a sale of real property may be, for example, 8 pages long, and the copies of it are issued not only to the parties, but they are also delivered to several state authorities. Then, the total sum of fees for copies may be 288 PLN plus 23% VAT.
Apart from notary costs, there can be also a court fee. If parties executed a contract concerning real property, a notary should submit (on their behalf) the application for the entry to the land and mortgage register. A person concerned can be, for example, a real property buyer who is then obliged to pay a court fee. This fee is payable to the notary. Its rate is regulated by the Art. 42–48 of the Act of 28 July 2005 on court fees in civil cases. The fee depends on the type of application and the legal basis for the entry. For example, the fee for entering the buyer in the land and mortgage register as the owner is usually 200 PLN. Irrespective of the court fee, the notary receives remuneration for submitting an application to the land and mortgage register (it is one of notarial services) in the maximum amount of 200 PLN (plus 23% VAT).
Apart from notary costs, there can be also a duty to pay tax. One can read what transactions are subject to tax on civil law transactions (transfer tax) and what are its rates, in the Act of 9 September 2000 on tax on civil law transactions. Liable to tax, among others, are: sale (including sale of real property); establishment of right of habitation (or life annuity); division of the succession; termination of tenancy in common; articles of association of partnership and companies. The tax should be paid by the purchaser of the real property, and in case of establishing a partnership or a company – by the partnership or company itself. The tax rate is usually 2% of the transaction value, and in the case of establishing a partnership or a company agreement – 0.5% of the share capital. For example, a buyer of an apartment worth 400 000 PLN on the basis of a contract of sale, executed with a person who does not run a business in this area, should pay the tax on civil law transactions (transfer tax) in the amount of 8 000 PLN. The tax is paid to the notary. Transaction that are not included in the above act are not subject to tax (e.g., a preliminary agreement, prenup, establishment of a family foundation, power of attorney). Contracts that are subject to VAT (e.g. purchase of an apartment from a person who run business in this area, so in the primary market) are exluded from the tax on civil law transactions (transfer tax).
Apart from notary costs, there can be also a duty to pay tax. One can read, who and when is liable for the inheritance tax (estate tax), in the Act of 28 July 1983 on inheritance and gift tax. This tax is charged, among others, to a person who acquires property through succession, beqests, gift gratuitous termination of tenancy in common, or gratuitous establishment of an easement. However, persons acquiring property within the so-called zero tax group, that is within the close family, are exempted from the tax. It concerns acquiring property by the spouse, children, grandchildren, further descendants, parents, grandparents, further ascendants, stepson, stepdaughter, siblings, stepfather, and stepmother. For example, a gift of real property to one of these persons is not taxable; as well as acquiring property through succession by one of them (e.g. inheriting from parents, grandparents, or siblings). Within the zero tax group, there is no obligation to pay the tax, provided that the notification is made to the head of the tax office. Acquiring property, e.g. throught gift or inheritance, by other persons is subject to inheritance and gift tax. Its rate depends on the family relationship (closer family pays less than more distant relatives). For example, a gift to a stranger regarding the apartment worth 400 000 PLN is subject to tax in the amount of 77 603 PLN. Inheritance and gift tax is paid to the notary. Acquiring property by a legal person is not subject to this tax. It may be taxed in a different way, in particular with corporate income tax.