New Landlord - taxation on rental income

I will shortly find myself in the position of renting out a flat, hopefully, since now is not an optimum time to sell. I am a Polish taxpayer (employee) and resident in Poland.

Could anyone explain to me the basics of the way the tax system works with regard to rental income and what costs you can offset against it, if any, especially things like financing costs, monthly maintenance fees, insurance etc.

Any help would be appreciated. Thanks.

Just do what most Polish landlords do: forget to declare the income.

Alternatively you could set yourself up as a one-person company with the sole defined corporate purpose of renting your own real estate. Then you'd pay 19% tax on the net income (i.e. less all costs). As you are already employed elsewhere, there won't be any ZUS to pay (although you might want to look at shifting the ZUS burden to yourself for the first two years as the payments then are only 250zl a month - you can offer to split the savings 50/50 with your employer), however you will need an accountant (expect to pay 200zl a month for a good one in Warsaw).

thanks Harry

I also heard there is some way of simply paying 8.5% of rental income, a kind of flat (if you forgive the pun) tax. Does anyone know anything about this

You can pay tax in amount of 8.5% of rental income, to the limit of 4.000 EUR. On income above that you will pay 20% tax.
In any case you have to register in tax office before end of January for the following year.

Harry, thanks for the information on the rental stuff. One other thing about your mail...you said that the going rate for an accountant is 200 zlt? Is that correct? The only reason why i ask is that i am then being fleeced by my current accountant.

Alternatively, if you are letting out to private people (not companies).
You can pay 5% (just came down from 10%).

The second way Harry is suggesting was better in the past because you were able to minus the costs.
But due to the new taxation law it works out better to just pay the 5%.
I think they made it less because most people 'forget to declare the income.'.


It depends on what you are using the accountant for, if you have an LTD company and are dealing with a lot of invoices, it is substantially more.