Private rental in Poland and abroad

Below we present the most important rules for settling income from private rental for the year 2025, with particular emphasis on tax reliefs and the taxation of rental properties located abroad.

Private rental and lump‑sum tax on registered income

Income from private rental (i.e., rental obtained outside of non-agricultural business activity) is currently taxed exclusively with a flat tax on registered income. The same form of taxation also applies to private rental of properties located abroad.

As a result, a taxpayer earning income from private rental cannot choose to tax this source of income under general rules (tax scale) or with a linear tax.

Lump‑sum tax rates and the PLN 100,000 threshold for private rental

The basic flat tax rates for income from private rental are:

• 8.5% – on income up to the amount of PLN 100,000 in the tax year,
• 12.5% – on the excess of income over PLN 100,000 in the tax year.

The limit of PLN 100,000 applies to the total amount of income from private rental attributable to the taxpayer in a given tax year.

If there is a marital property agreement between spouses and they earn income from private rental from joint property, in principle, the income is attributed to each spouse equally. However, spouses can submit a written declaration to the competent head of the tax office about taxing the entire rental income by one of them.

From the perspective of flat tax rates, what is important:

• without a declaration – each spouse applies the PLN 100,000 limit to their own portion of the income,
• with a declaration about taxing the entire income by one of the spouses – the limit for the 8.5% rate is doubled to PLN 200,000.

PIT‑28, deadlines and tax payments for lump‑sum taxation of private rental

Income from private rental taxed with a flat tax is reported in the annual tax return on form PIT‑28.

The deadline for filing the PIT‑28 return and paying any additional tax due under the flat tax is the end of April of the year following the tax year, so the return for 2025 must be submitted by 30 April 2026 – along with settling any tax underpayment.

Taxpayers earning income from private rental are obliged to independently calculate and pay the flat tax during the year – monthly or quarterly, depending on the chosen frequency.

This obligation applies to both income from rental of properties located in Poland and – in principle – income from rental of properties located abroad, if they are subject to taxation in Poland (depending on tax residency and the relevant double taxation avoidance agreement – see below).

Taxation of income from properties located abroad

Settling income from private rental can be quite challenging, especially when the property is located outside Poland. This is even more so for foreigners, who are often unaware of the obligations regarding paying monthly or quarterly advances on the flat income tax or submitting an additional annual tax return PIT-28.

The method of taxation in Poland of income from rental of a property located abroad depends on several factors:

1. whether the taxpayer has the status of a Polish tax resident (i.e. whether they stayed in Poland for more than 183 days in a given tax year or have a centre of vital interests in Poland);
2. whether Poland has concluded a double taxation avoidance treaty with the country where the rented property is located;
3. if such a treaty is in force, what method of avoiding double taxation it provides for (in the absence of an international treaty, according to the provisions of the Personal Income Tax Act, the proportional deduction method is applied).

The result of the above analysis will affect the settlement of rental income, which is detailed in the table below (click to zoom):

Deloitte support in settling private rental taxation

Settling income from private rental for the year 2025 – especially when it includes properties located both in Poland and abroad – may require combining knowledge of flat tax, tax reliefs, and the provisions of double taxation avoidance agreements. Failure to fulfil obligations regarding advances, incorrect application of the method of avoiding double taxation, or omission of the obligation to submit PIT‑28 may result in summons from the tax office and the imposition of interest.

In case of doubts, we encourage you to contact the Deloitte team. Our advisors help taxpayers – both residents and foreigners – to safely and effectively settle income from private rental in Poland and abroad.