Is Rental a Business Activity under Polish PIT Regulations? Is rental income subject to PIT in Poland as a business activity, or can it still be treated as private income? How do tax authorities approach this? And most importantly — is their interpretation favorable to taxpayers? Recently, an article in Rzeczpospolita featured commentary from Piotr Sekulski, PhD precisely on this subject.
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Is rental a Business Activity in Poland (PIT)
tax advisor Piotr Sekulski, PhD
“Recent interpretations from the Polish tax office show that property owners can choose how to declare rental income for PIT purposes in Poland. The income may be treated as private rental and taxed using the lump-sum method, or — if the owner registers a business — it can be taxed under one of three options: progressive PIT, flat tax, or lump-sum. Importantly, tax authorities do not require registration as a business, even when the landlord owns multiple properties, uses platforms like Airbnb or Booking, or works with property managers who rent the unit to tourists.
The tax office’s stance has evolved over the past two or three years. A key turning point was the ruling of the Supreme Administrative Court (NSA) dated May 24, 2021 (ref. II FPS 1/21), which stated that taxpayers can decide whether a specific asset is tied to business activity or remains part of private wealth management.
This interpretation wasn’t immediately adopted across tax offices, but now, the tax authority generally allows taxpayers to choose how they declare rental income in PIT.””
Full article available in here.
How can we help?
We’ve already written about rental income taxation in Poland, including updates for 2023:
If you’re unsure whether your short-term rental activity in Poland counts as a business for PIT purposes, get in touch!
Describe your case, and we’ll analyze it carefully. During a personal consultation, we’ll explain how to declare your rental income in the PIT system, what tax obligations apply, and how to minimize risks related to rental income taxation.
In more complex cases, we also help with official requests for tax rulings (interpretacje) from the National Tax Information (KIS).
Have questions about rental income and PIT in Poland? Visit www.outsourced.pl.
