Poland Rental Income Tax Guide (Opodatkowanie Najmu)

Rental income (najem) in Poland can be taxed in two ways: a flat lump-sum (ryczałt od przychodów ewidencjonowanych) at 8.5% on revenue up to PLN 100,000 and 12.5% above that, or under progressive IIT rates (12%/32%) with deductible expenses. The lump-sum (ryczałt) is the most popular option due to its simplicity. All amounts in PLN.

Since the 2022 tax reform (Polski Ład), separate housing allowances for landlords were eliminated, and the lump-sum option became significantly more attractive. For related guidance, see our Tax Filing Guide → and Cross-Border Guide →.

Lump-Sum Taxation (Ryczałt od Przychodów Ewidencjonowanych) — Most Popular

Since January 2023, private rental income (najem prywatny) outside a business is required to be taxed as ryczałt (lump-sum) under the Polish Deal reform — unless the rental is part of a registered business activity.
Rate: 8.5% on annual rental revenue up to PLN 100,000; 12.5% on revenue exceeding PLN 100,000.
No deductions allowed — the tax is on gross revenue (przychód), not net income. You cannot deduct mortgage interest, maintenance costs, repairs, management fees, or depreciation.
However, the lump-sum rate is so low (8.5%) that it often beats the effective tax under the cost model, especially for properties with low expenses.

Progressive IIT Rates (12%/32%) — Actual Cost Model

If your rental activity is registered as a sole proprietorship (działalność gospodarcza), you can opt for the general rules (skala podatkowa) — progressive 12%/32% on net income (revenue minus deductible expenses).
Alternatively, you can choose the flat 19% liniowy rate if registered as a business.
Deductible expenses include: mortgage interest, property management fees, maintenance and repairs, insurance, utilities (if paid by landlord), depreciation (amortyzacja) of the building, legal and accounting fees.
The cost model is advantageous for highly leveraged properties (large mortgage interest deductions) or properties requiring significant ongoing maintenance.

Private Rental vs. Business Rental

Private rental (najem prywatny): For individuals renting out property not as a business activity. Since 2023, only the lump-sum method is available for private rentals. You report on PIT-28 (ryczałt return).
Business rental (najem w działalności gospodarczej): If you own multiple properties, rent short-term (e.g., Airbnb), or provide additional services (cleaning, concierge), the tax authorities may classify your activity as a business. You report on PIT-36 or PIT-36L.
In a business, you can choose between lump-sum (rates vary by activity) or general/cost rules. The business lump-sum rates for rental services are generally 8.5% (up to PLN 100k) and 12.5% (above).

Ryczałt (Lump-Sum) Details

Ryczałt is paid monthly (by the 20th of the following month) or quarterly (if prior year revenue was below PLN 200,000).
You cannot deduct ZUS social contributions, healthcare contributions, or any other expenses from the lump-sum base.
However, you can reduce the annual tax by the amount of healthcare contributions paid (7.75% of the contribution base, capped).
Annual return: PIT-28, filed by April 30 of the following year.

No Separate Housing Allowance

The Polish Deal (Polski Ład) removed the separate housing allowance (ulga mieszkaniowa) for landlords that previously allowed a PLN 100,000 tax-free threshold under certain conditions.
Landlords can no longer claim a separate personal housing allowance on rental income. The standard tax-free allowance (kwota wolna, ~PLN 30,000) applies only to income taxed under general rules (skala podatkowa) — not to lump-sum rental income.
Under the lump-sum regime, the first PLN 30,000 of other income (e.g., employment) is tax-free, but rental lump-sum revenue is fully taxed at 8.5%/12.5% without a personal allowance.

Practical Considerations

Loss carryforward: Under the cost model, rental losses can offset other business income (if registered as a business). Under lump-sum, there is no loss concept — you pay tax on gross revenue regardless.
Joint ownership: If a property is co-owned (e.g., spouses), each co-owner reports their share of rental income separately and may benefit from the PLN 100,000 threshold individually.
Short-term rentals (Airbnb): Likely classified as business activity, especially if providing services beyond basic rental. Hotel-like services (cleaning, breakfast, daily linen changes) may trigger VAT obligations.
Most Polish landlords prefer the ryczałt due to its simplicity — no need to track expenses, no complicated depreciation schedules, and the 8.5%/12.5% rates are competitive with effective tax rates under the cost model.