As non-resident in Poland, do I need to file a Polish tax return?
Yes, if you are in receipt of Polish rental
income you have an obligation to declare this income before the Polish tax
Do I need to get a Polish tax ID number in order to file tax returns?
Yes, a Polish tax ID number (NIP number) is
required for any tax filing purposes. Non-resident individuals are obliged to
obtain a Polish NIP number in order to file any tax returns.
What is the Polish VAT rate when purchasing Polish property?
The type of property being purchased will
determine the Polish VAT rate. The purchase of second hand properties will
incur a Polish VAT rate of 22%. New Polish buildings also incur a 22% VAT rate.
Before 01.01.2008 the tax rate was 7%. However, the increase of the tax rate
relates only to houses over 300sqm and apartments over 150sqm. A property
becomes second hand after 5 years.
What Polish taxes apply when purchasing property in Poland?
The following are some of the Polish taxes applicable when
- Polish VAT –
between 7% and 22% - depending on whether this is new property or second hand
as well as size of property
- Polish stamp
duties and Polish court fees – Depend on the value of the Polish property.
- Polish real
estate agent fees – vary between 2.9% and 5% of the Polish property value
What are the basic methods of Polish income taxation?
There are two basic Polish income taxation methods:
scale method – Polish tax office will assign this method as the default process
unless the tax payer state otherwise before beginning of the new tax year.
Polish income tax is paid on actual profit, which is difference between income
and allowable costs.
- Fixed rate method.
No tax deductions allowed. Polish income tax is calculated on gross income
What are the Polish income tax rates?
The Polish income tax rates depend on method of taxation:
According to the Progressive scale method (tax rates for 2008):
Taxable base in Złotych for 2008
19% minus amount decreasing tax 586 zł 85 gr
||7 866 zł 25 gr + 30% for the amount above 44 490 zł
|20 177 zł 65 gr + 40% for the tax above 85 528 zł
|Tax free allowance: 3 091 zl
According to the Fixed rate method:
- 8.5% - up to the income of Euro 4 000
- 20% - above income of Euro 4 000
What is the deadline for Polish income tax filing?
The Polish income tax filing deadline
depends on the chosen method of taxation
- According to the Progressive scale method, the deadline is April 30th
- According to the Fixed rate
method, the deadline is January 31st
Am I obligated to file a Polish tax return after a sale of a Polish property?
Non-residents are obligated to file a
Polish Capital Gains Tax (CGT) return after the sale of a property in Poland.
What are the Polish Capital Gains Tax (CGT) rates?
The rate of Polish CGT depends on date of purchase of the Polish property
- for Polish properties purchased before 01.01.2007, Polish CGT is calculated as 10% of the sale price less sale expenses
- for Polish properties purchased after 01.01.2007, Polish CGT is calculated as 19% of the net profit (sale price less sale expenses less gross purchase price).
What is the deadline for Polish CGT filing?
The deadline for Polish CGT filing depends on date of purchase of the property:
- for Polish properties purchased before 01.01.2007, Polish CGT filing deadline is 14 days after the signing the final sale deed.
- for Polish properties purchased after 01.01.2007 the CGT return is submitted along with the annual Polish income tax return. The deadline is April 30th of following year after income was received.
Is there any Polish CGT relief?
Yes, Polish CGT is exempt if:
property is sold after 5 years of ownership
property is sold less than 5 years after the purchase date, but within 2 years
after purchasing it, all the money will be used to buy another
property/renovation/paying off mortgage/buying a land.