Last Updated on February 20, 2024 by Kristina Valcheva
If you are a non-resident landlord and earning an income from a property in Poland you will be required to file a tax return before 2 May 2023 (for personal income tax returns).
The Polish tax system can be confusing, especially if you don’t speak the local language.
But not to worry, the PTI returns’ tax team is here to help!
So, with that in mind, in this guide, we are going to cover everything you need to know before the Polish tax filing deadline and share some useful tips to help you file your return easily online. We will answer some of the most frequently asked questions on Polish rental income tax.
- In this article:
- What are the tax obligations of non-resident Polish rental property owners?
- Who needs to file a property tax return in Poland?
- How is rental income calculated in Poland? Are there any allowances or deductions?
- What do you need to file an income tax return in Poland?
- What are the Polish tax rates and deadlines?
- Does Poland have a double taxation agreement with countries?
- Where can you file and pay Polish property tax on rental income?
- Who can help?
What are the tax obligations of non-resident Polish rental property owners?
Every non-resident Polish rental property owner is subject to tax.
Owners of rental properties in Poland, that are in receipt of rental income, must declare this income by submitting a tax return to the Polish tax authorities each year.
Anyone earning rental income in Poland has to make monthly calculations and payments to the tax office. You have until the 20th of the month following the relevant quarter to pay.
Who needs to file a property tax return in Poland?
Resident and non-resident property owners must pay rental income tax.
Every person or company who is in receipt of rental income in Poland is obliged to declare this income by submitting a tax return to the Polish authorities each year.
How is rental income calculated in Poland? Are there any allowances or deductions?
The tax year in Poland runs from 1 January to 31 December.
Due to the changes in the Polish tax regulations that have recently come into effect, all landlords with properties in Poland have to pay income tax in advance on a monthly or on quarterly basis. As we mentioned above, you have until the 20th of the month following the relevant quarter to pay. For example, the tax due for the first quarter must be paid by April 20th, 2023.
What has changed?
- The tax rate is 8.5% for rental income up to 100 000 PLN, and 12.5% for income over 100 000 PLN. In the past, the income tax rates ranged from 17% to 32% under the progressive scale method.
- You won’t be able to deduct any expenses. Before 2023, you were able to deduct all applicable expenses.
- The tax must be paid in advance – monthly or quarterly. Before that, you had the option to pay it only monthly. Now you can choose the option you prefer.
- All landlords will have an income tax to pay. Before the changes, some landlords earned under a tax-free threshold and didn’t have to pay any income tax.
If you miss the payment deadline, you will be subject to fines and penalties.
If you have any questions, you can request a no-obligation, free call from our tax experts.
As mentioned above this is when the income tax is paid on the actual profit, which is the difference between income and allowable costs.
The Progressive Scale method can be a little tricky but don’t worry, at PTI Returns we can take care of all the tricky paperwork.
By adding a depreciation rate to your property can you reduce your taxes?
Any costs that are incurred with the property can be depreciated.
The depreciation rate for properties is 1.5% of the property value per year. If the property is used or improved the depreciation rate can be increased up to 10% per year.
What do you need to file an income tax return in Poland?
- If you are a non-resident in Poland and you pay certain taxes, you must apply for a tax identification number (NIP)
(Polish tax ID number)
- Property owners must register themselves for tax purposes and obtain a NIP number
What are the Polish tax rates and deadlines?
The tax year runs from 1 January to 31 December.
- Under the progressive scale method, the tax filing deadline is around 30 April in the year after the year in which the income was received.
- The deadline is 31 January under the fixed rate method.
Under the Progressive Scale Method tax rates range from 17% to 32%.
The Flat Rate method is a little different. The tax rate is 8.5% and no deductions are allowable.
If you purchase a Polish property that is a secondary market property, it is subject to a purchase tax of 2% and notary fees.
The Capital Gains Tax rate in Poland is 19% and is the same rate as corporation tax and tax on dividends.
Capital Gains Tax is only paid when a property is sold within 5 years of the purchase date.
As mentioned previously the tax filing deadline is around 30 April each year for the progressive scale method. The deadline for the 2022 tax year is 2 May 2023.
I manage multiple rental properties in Poland, are the rates the same?
If you own multiple rental properties in Poland it means the threshold is applied in a completely different manner.
- It is not referring to a specific building owned by the taxpayer but all the buildings owned by the given taxpayer.
- Tax is due when a specific property has a value that exceeds PLN 10,000,000 or where the total value of several properties exceeds PLN 10,000,000.
- This amount is a sort of tax-free amount, it reduces the tax base in the case of properties with a value exceeding PLN 10,000,000.
The change that came into effect on commercial property tax in 2019, will mostly affect taxpayers that own many properties that were not subject to tax before due to their value.
The tax rates remain the same as mentioned in this piece if the taxpayer is subject to tax.
Want to learn about our online property tax return filing service?
When you apply through this contact form a PTI Returns tax specialist will contact you.
Does Poland have a double taxation agreement with countries?
Poland has double taxation agreements with all the countries we provide property tax services to (Hungary, UK, USA, France, Germany, Spain and Ireland).
If you are a resident in these countries you will have to report any earnings received in Poland on your annual resident tax return.
Relief from double taxation is usually available in these countries.
At PTI Returns, our team of tax experts will provide you with further information on double taxation when filing your return.
Where can you file and pay Polish property tax on rental income?
You can file your Polish tax return directly yourself. Alternatively, you can easily file online with PTI Returns.
Our Polish tax team will handle all of the tricky tax paperwork and ensure you’re availing of every tax deduction you’re entitled to.
How can PTI Returns help?
Property Tax International (PTI Returns) specialises in international property tax returns and ancillary services for overseas property investors.
We understand tax can be confusing and that’s how our service can help and communicate directly with the Polish authorities. Our experts will assist you through the entire tax process.
- We filed over 322,000 tax returns last year.
- Property Tax International receives immediate notification of changes to property tax laws and regulations to ensure the necessary action is taken.
- At PTI Returns we offer a list of Polish tax services. See our fees.
You can register for a no-obligation call or request or email info@ptireturns for further information.
5 reasons why our clients choose Property Tax International (PTI Returns) instead of local accountants:
- Better value – we offer a more affordable service than your local accountant
- One stop shop – need to file tax documents in more than one jurisdiction? You can do it all online with PTI Returns! This is one of the most unique things that sets us apart from most accounting services
- Tax specialists – We know international property tax! We guarantee to properly determine your residency status and apply every tax relief you’re entitled to
- No language barrier – we speak our client’s language and communicate with the local tax authorities on their behalf, ensuring their forms are filed correctly
- Local knowledge – we have offices all over the world. This enables us to have substantial local knowledge in every country and help you to maximise your investment profit potential
Got questions about Polish tax? Contact PTI Returns here.
