If you ask why I pay tax on my rental earnings, then its a simple answer, that I am obeying the law and yes I do often ask the question why I bother when many Poles do not but for example my kids are at state school here and someone needs to pay for that education.
But the simple fact remains that very very few people do pay tax on their rental income. I'm currently renting a small flat to use as an office for my one-person company and was today told "No I cannot give you a receipt for the money you pay me. It's because I can't rent this flat out to a company, only to a person who lives here." All the other flats on that floor are either rented as offices or are empty. I told the landlord that I'd be seeking alternative premises and he replied "Well, it would be more risky for me if I rented it to a company. I'd need some extra money to make up for that risk."
And finally re the bubble issue and intrinsic prices then in your Warsaw example it would still be 14% overpriced in the most liquid market in the country.
So it would need to fall by 8.7% to reach the 'correct' value. Hardly a bubble! And not too good for our bet.
A rent of PLN 2000 would actually absorb more than half the take home pay of an average Varsovian for living in a very small place - thats actually another worrying sign as disposable incomes will be squeezed.
Yes, but that has been the rental level for the past decade and a bit, so in real terms they have fallen. And 39m is by no means small for a single person!