Income tax on rent, worked example, in Poland
Taxation Researcher |
June 28, 2022
Non-resident couple´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:
|
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.