Recently, an article titled “End of the Tax Haven for Landlords (…)” appeared in Rzeczpospolita. It discussed a change introduced by the Polish Deal, which, as of January 1, 2023, no longer allows property owners renting out apartments to settle PIT according to general principles but only in the form of a lump sum. The article includes an expert commentary by Dr. Piotr Sekulski, a tax advisor from Outsourced.pl on Real Estate Rental Tax.
Real Estate Rental Tax
tax advisor Piotr Sekulski, PhD
“If those earning from private rentals want to save on tax costs, they might consider setting up a business. In business activities taxed according to the scale or the flat rate, it is still possible to deduct expenses related to the property. However, let’s remember that the main benefit is gone, as the Polish Deal has banned the amortization of apartments and houses. Establishing a business solely to deduct renovation and equipment purchases or to take advantage of the tax-free amount (on the scale) may turn out to be unprofitable. In business, one must pay social and health insurance contributions, and there are also bureaucratic obligations.
A more interesting solution seems to be adding the rental to an existing business, if you already have one. Of course, everyone must analyze whether this will not cause negative consequences, such as exceeding the tax scale threshold when combining incomes.”
The full article is available here.
How can we help?
We have previously written about tax changes related to real estate rental (link):
If you have questions or doubts about real estate rental tax after reading the article, contact us! Describe your situation in detail and the questions that trouble you. We will analyze your case, and during individual consultations, we will explain any questions or doubts, as well as discuss the possibilities of limiting tax risks. In more complex cases, we help with preparing a tax ruling request to KIS!
If you have questions about real estate rental, visit us at www.outsourced.pl .
