On 29 April, 2025, the Court of Justice of the European Union (CJEU) addressed the issue of tax exemptions for land included in railroad infrastructure in a judgment. The case concerned a Polish company that was denied a real estate tax exemption by the tax authority, claiming as a potential violation of the EU state aid law.
The CJEU ruled that general and abstract property tax exemptions, such as those applied in Poland to rail infrastructure, do not in principle constitute prohibited state aid, as they are not selective and do not favor specific companies or sectors.
Nevertheless, the CJEU pointed out that in a situation where a national court finds that a particular exemption provides a selective advantage, it is necessary to examine whether it distorts conditions of competition.In case of any questions, please contact Rafał Czyżyk (rczyzyk@cmwlegal.pl) or Mikołaj Machnio (mmachnio@cmwlegal.pl).