Nonresidents are taxed on their Polish-sourced income. Married couples are taxed separately.

Taxable income is generally calculated by deducting income-generating expenses from the gross income. Taxable income from all sources is then aggregated and taxed at progressive rates.

Income Tax Rates 2024

Rental Income Tax

As of 2023, the sole permissible method for taxing private rental income is through lump-sum taxation, with a rate of 8.5% for annual revenues under PLN 100,000 (€23202.05) and 12.5% for any amount exceeding PLN 100,000.

Corporate Taxation

Income Tax

Income and capital gains earned by companies are taxed at the corporate tax rate of 19%. Income-generating expenses are deductible when calculating taxable income.

Capital Gains Tax

Capital gains from the sale of real estate are tax-exempt if the individual has owned the property for at least five years before the sale.

Capital gains incurred for properties sold within five years of acquisition are subject to capital gains tax at a flat rate of 19%. The acquisition price and transaction costs are deductible from the selling price to arrive at the taxable gain.

Taxpayers who acquired residential property before January 1, 2007, are subject to different rules. A flat rate of 10% is levied on the sales proceeds less transaction costs.

Value Added Tax (VAT)

VAT is generally levied at a flat rate of 23%. A preferential rate of 8% may apply in some transactions.

The lease of immovable property for the purpose of accommodation (not for business purposes) is VAT-exempt.

Land sales and building sales are generally subject to 23% VAT. The preferential rate of 8% may apply if the residential premises do not exceed 150 square meters.

Property Buying Costs and Taxes in Poland

Transaction Costs