Selling a garage step by step: documents, costs and tax

In this guide we go through selling a garage in order: from establishing what exactly you are selling, through documents, the listing and the deposit, to the notary appointment and income tax.

Step 1. Establish what you are selling

The form of ownership determines whether you can sell the garage separately, in what form and which documents to prepare.

A brick garage on someone else's land, e.g. municipal land, without its own land and mortgage register is a special case. A building permanently attached to the ground is, as a rule, part of the land, so what you can sell depends on the agreement with the landowner. Before you post a listing, show the documents to a notary. A garage appurtenant to a flat is a similar case to a storage unit. We described the possible routes in the guide selling a storage unit step by step.

Step 2. Prepare the documents

• Land and mortgage register number. Check the register online in the Ministry of Justice's land and mortgage register viewer: whether you are entered as the owner and whether there is a mortgage in Section IV.
• Document of acquisition: the notarial deed of purchase, a gift agreement, a court decision confirming the acquisition of an inheritance or a notarial certificate of inheritance.
• A certificate from the cooperative or the manager confirming there are no arrears in charges. Buyers often ask for it, and with a cooperative right the notary needs a certificate confirming the right.
• Spouse's consent. If the garage belongs to your joint marital property, the sale requires your spouse's consent (Article 37 § 1 of the Family and Guardianship Code). It is simplest if you both appear before the notary.
• Mortgage: if there is one, ask the bank for a statement of the outstanding debt. Part of the price then usually goes directly to the bank.

Step 3. Set the price

The price is best based on similar offers from the same area. Browse garages for sale in your city and compare only garages of the same type. The price is affected by:

• the form of ownership: a garage with a land and mortgage register is easier to sell and to finance with a loan,
• the location and how hard it is to find parking in the area,
• the dimensions of the door and the interior, because large cars will not fit in every garage,
• electricity, an inspection pit, lighting, the condition of the roof and the door,
• access and 24-hour availability,
• monthly charges and property tax. A garage in a residential building has lower tax than a detached one, which we explain in the guide garage tax.

Step 4. Post a listing

Buyers compare garages on specifics, so in the listing state:

• the form of ownership and whether there is a land and mortgage register,
• the dimensions of the door (width and height) and the interior,
• electricity, an inspection pit and access,
• the monthly charges,
• from when the garage is available.

Take photos in daylight, with the door open and without other people's number plates. You can add the listing on Maszbox.pl with no commission, following the instructions how to add a listing.

Step 5. Preliminary agreement and deposit

Once you find a buyer and you need time before the deed (e.g. for a loan), sign a preliminary agreement.

• Preliminary agreement before a notary: if it takes the form of a notarial deed, the entitled party may demand in court that the sale agreement be concluded (Article 390 § 2 of the Polish Civil Code).
• Ordinary written agreement: if it is not performed, usually only damages remain.
• Deposit (zadatek) (Article 394 of the Civil Code): if the buyer withdraws, you keep the deposit. If you withdraw, you return double the amount.
• Advance payment (zaliczka): it is refundable if the sale does not go ahead.

In the agreement, write down the price, the date for concluding the final agreement, the amount of the deposit and the condition in which the garage is to be handed over.

Step 6. The notary appointment

Selling a garage that is a property or a right to premises requires a notarial deed. An agreement concluded without one is invalid. The costs, i.e. the notary fee, the civil-law transaction tax (2% of the value) and the court fees, are customarily covered by the buyer, but you may agree otherwise. How much they are is described from the buyer's perspective on the garages for sale page.

A metal garage that is not permanently attached to the ground is sold with an ordinary written agreement. Write down the parties' details, a description of the garage, the price, the handover date and whether the buyer takes over the spot on the leased land.

Step 7. After the sale

• Handover: draw up a report with the number of keys and remotes and the electricity meter reading.
• Municipality: within 14 days, file the information on the disposal (IN-1). Your tax liability expires at the end of the month of the sale, and the buyer pays the tax from the following month.
• Cooperative, residents' association or manager: notify them of the change of owner.
• Garage insurance: cancel or change the policy.
• Is the garage rented out? The buyer takes your place in the rental agreement (Article 678 § 1 of the Civil Code). Tell them before signing the agreement, hand over the rental agreement and settle the tenant's deposit.

Tax on selling a garage

When you pay 19% income tax (PIT)

You pay income tax if you sell the garage before 5 years have passed, counting from the end of the year in which you bought or built it. Did you buy a garage in 2022? You count five years from the end of 2022, so a sale from 1 January 2028 does not give rise to tax.

The tax is 19% of the income, i.e. the sale price minus the documented costs of purchase and outlays on the garage. You file the PIT-39 return by 30 April of the following year.

An inherited garage

For an inherited garage, you count the five years from the end of the year in which the deceased acquired or built the garage, not from the date of death.

Housing relief

The income may be tax-exempt if you spend the money from the sale on your own housing needs, e.g. buying a flat, within 3 years from the end of the year of the sale (Article 21(1)(131) of the Personal Income Tax Act). Tax authorities usually do not recognise buying a garage on its own, with a separate land and mortgage register, as a housing purpose. Before you plan your spending, ask an accountant.

A metal garage

A metal garage sold as a movable item is subject to PIT only if you sell it within six months, counting from the end of the month in which you bought it.

If the garage was part of your business, different rules apply (business income tax, possible VAT). Settle them with an accountant.

This post is for information only. Maszbox.pl connects buyers and sellers but is not a party to the sale agreement. For tax matters ask an accountant, and if the garage's status is unusual, ask a notary.