Property-Related Taxes in Poland

Non-resident individuals are generally taxed in Poland only on Polish-source income, including income and taxable gains arising from Polish real estate.

Income Tax

For income that falls under Poland's ordinary progressive personal income-tax regime, the principal rates are 12% and 32%.

The 12% rate applies up to PLN 120,000 of taxable income, while income above PLN 120,000 is generally taxed at PLN 10,800 plus 32% of the excess over PLN 120,000.

These progressive rates should not, however, be applied to ordinary private rental income, which is subject to the separate lump-sum rental regime described below.

Rental Income Tax

Private rental income is subject to Poland's lump-sum tax on recorded revenue (ryczałt) rather than the ordinary progressive personal income-tax system.

The applicable rates are 8.5% on annual gross rental revenue up to PLN 100,000 and 12.5% on the portion of annual rental revenue exceeding PLN 100,000.

Because this regime taxes gross rental revenue, ordinary property expenses such as repairs, maintenance, management costs and depreciation are generally not deducted when calculating the rental tax.

The PLN 100,000 threshold generally applies to the taxpayer's combined qualifying private rental revenue for the year.

Corporate Tax

The standard Polish corporate income-tax rate is 19%.

A reduced 9% corporate income-tax rate may apply to qualifying small taxpayers and certain new businesses. For 2026, small-taxpayer status generally requires prior-year sales revenue, including VAT, not exceeding the PLN equivalent of €2 million. For a calendar-year taxpayer, the official 2026 small-taxpayer threshold is PLN 8.517 million.

In addition, revenue in the current tax year must generally remain within the applicable €2 million limit to use the 9% rate. For a standard calendar-year taxpayer in 2026, that current-year threshold is PLN 8.431 million.

The 9% rate applies to qualifying income other than capital gains. Capital gains remain subject to the 19% corporate income-tax rate.

Qualifying expenses incurred in generating taxable rental or other business income are generally deductible under the ordinary corporate tax rules.

Capital Gains Tax

A private sale of Polish real estate is generally outside personal income tax if it takes place after five years calculated from the end of the calendar year in which the property was acquired or constructed.

For example, a property purchased during 2020 could generally be sold from 1 January 2026 without Polish personal income tax on the private disposal.

Where a private property is sold before the five-year period expires, the taxable gain is generally subject to 19% income tax.

The taxable gain broadly represents the sale proceeds less qualifying acquisition costs and eligible expenditure.

An exemption can also be available where qualifying proceeds are spent on the taxpayer's own housing purposes within the prescribed period and the statutory requirements are satisfied.

Property Buying Costs and Transaction Taxes in Poland

Annual Property Tax

Poland levies an annual Real Estate Tax (podatek od nieruchomości). Unlike property taxes in many countries, it is generally based on the area and use of the property rather than its market value.

Municipalities determine their own rates, subject to maximum amounts established nationally.

For 2026, the maximum annual rate for residential buildings is PLN 1.25 per m² of usable floor area. For other land, including ordinary residential land, the national ceiling is PLN 0.77 per m².

Property connected with business activity is taxed considerably more heavily. For 2026, the maximum rate is PLN 35.53 per m² for buildings or parts of buildings used for business activity and PLN 1.45 per m² for land connected with business activity.

Actual rates can be lower because each municipality establishes its own rates within the national limits.

For example, at the maximum 2026 residential-building rate, a 100 m² apartment or house would incur only PLN 125 per year on the building itself, excluding any separately taxable land.