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: |
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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.