Income tax on rent, worked example, in Poland

Taxation Researcher | September 24, 2019

Non-resident coupleĀ“s rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less: Expenses3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax4
Up to PLN 85,828 18% 2,430 3,433 3,433
Over PLN 85,828 32% - 11,198 28,478
Annual Income Tax Due 2,430 11,466 23,886
Tax Due as % of Gross Income 13.50% 20.30% 22.15%
Thanks to:
TGC Corporate Lawyers

Notes


1 The property is jointly owned by husband and wife

2 Exchange rate used: 1.00 EUR = 4.50 PLN

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4 Rental income of nonresident individuals is taxed at progressive rates.

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