Residential Tax Poland
Income from residential property located in Poland is liable for tax, irrespective of whether the owner is resident in Poland or not. Owners of residential properties in Poland, who are in receipt of rental income, are obliged to declare this income by completing/submitting a tax return to the Polish tax office.

In Poland the tax year, runs from 01 January to 31 December.

Income Tax on residential property in Poland is calculated using one of two methods:

  • Progressive scaled rates 18%-32% on rental profits after costs; or
  • Fixed rate of 8.5% on gross rental income, with no deductions for costs.

The deadline for filing a Polish tax return under the progressive scale method is 30th April of the year following the tax year to which the income relates (i.e. for 2016 the deadline will be 30th April 2017).

Under Polish tax legislation, all individuals earning rental income in Poland are required to make monthly calculations and payments to the tax office by the 20th of the month following the month in which rent was received. Under the progressive scale method monthly payments are calculated on the rents received for the month less relevant expenses incurred for the month. Once the cumulative net amounts reach the tax free allowance for the year (current annual tax free allowance is PLN 3,091) the monthly net amount is multiplied by the applicable tax rate and tax payments are made on this basis. At the year end the annual tax return is submitted and the final tax position is determined. This may result in a refund due or a final balancing payment to be made depending on the payments made throughout the year.

Tax Identification Number – Non-residents in Poland, who are liable to pay certain taxes, must apply for a Polish NIP or Tax ID number.

Local Polish Property taxes (rates) are also payable quarterly. Rates vary and range between 0.33 PLN – 0.68PLN per sq. m.

Polish Capital Gains Tax (CGT) is charged at 19% of the gain after costs which includes fit out.

Worldwide income
If you are a resident in Ireland or the UK, you are obliged to report any income received in Poland on your annual resident tax return (i.e. your Irish or UK tax return). There are double taxation agreements between Poland and Ireland and Poland and the UK so double taxation will not usually apply.

Avent Estates can organise the following services for you:

  • Apply for Tax ID number i.e. NIP
  • Prepare your Monthly Tax Calculations
  • Prepare and file your Tax Return in respect of your Polish Rental Income
  • Prepare and file your CGT (Capital Gains Tax) Tax Return
  • Apply for Tax Clearance Certificate
  • Make payments to the Tax Office on behalf of clients
  • Assist with any queries with the Income Tax office

Note: The information provided here is intended as a guide only. While Avent Estates makes every effort to ensure that the information contained herein is accurate, we take no responsibility or liability for any inaccurate, delayed or incomplete information, nor for any actions taken regarding the above.