Renting Out Property in Poland as a Foreigner: Tax and Lease Rules

A rental agreement is a contract under which a landlord makes property available for use by a tenant in exchange for rent. For foreigners renting out property in Poland, the legal analysis usually covers three areas: Polish rental income tax, the form of the lease agreement, and compliance with landlord obligations.

Foreign ownership does not, in itself, prevent a person from renting out an apartment, house or commercial premises in Poland. However, the acquisition of certain real estate by foreigners may require a permit under the Act on Acquisition of Real Estate by Foreigners. The rules include exemptions, in particular for citizens and enterprises from the European Economic Area and Switzerland, while special restrictions may apply to property located in border zones. The acquisition of agricultural land is also subject to separate statutory restrictions [1]. The rental activity itself must then be structured correctly for tax, civil-law and regulatory purposes.

Lawyersinpoland.com by Kopeć & Zaborowski assists international property owners in assessing the legal and tax risks connected with Polish real estate investments and transactions, lease agreements and disputes.

Rental income tax in Poland for a foreigner

Poland taxes income derived from real estate located in Poland, including where the owner is a non-resident. Under Article 3(2a) and Article 3(2b)(4) of the Personal Income Tax Act, a non-resident is subject to Polish tax on income earned in Poland, including income from property situated in Poland [2].

For private landlords (renting outside business activity), rental revenue has been taxable since 2023 only under the lump-sum tax regime; the progressive scale is no longer available for private rental. This is commonly referred to as ryczałt, or the lump-sum tax on rental income in Poland. The applicable rates are:

• 8.5% of annual rental revenue up to PLN 100,000,
• 12.5% of rental revenue exceeding PLN 100,000.

The tax is calculated on revenue rather than profit. This is a significant commercial issue because expenses such as repairs, mortgage interest, management fees, insurance, depreciation and renovation costs generally do not reduce the taxable base under the private lump-sum regime.

The legal basis is Article 2(1a) and Article 12(1)(4) of the Act on Lump-Sum Income Tax on Certain Revenue Earned by Natural Persons [3]. Where spouses jointly own the rented property, each spouse is generally taxed on their own share of the revenue with a separate PLN 100,000 threshold; alternatively, the spouses may elect for one of them to settle all the revenue, in which case the 8.5% rate applies up to PLN 200,000 [3]. Tax is normally paid by the 20th day of the following month, and the tax for December by 20 January of the following year. Quarterly settlement may be available where statutory conditions are met, including the relevant revenue threshold. The annual PIT-28 return is filed between 15 February and 30 April of the following year [3].

Double taxation treaties and rental income

A double taxation treaty analysis of rental income is necessary where the owner is tax resident outside Poland. Most tax treaties concluded by Poland follow Article 6 of the OECD Model Tax Convention, under which income from immovable property may be taxed in the state where the property is located [4]. Therefore, Poland usually retains the right to tax rent from Polish real estate.

The foreign owner’s country of tax residence may also require reporting of the income. Whether Polish tax is credited, exempted or otherwise relieved depends on the specific double taxation treaty and the domestic law of the owner’s residence state. The relevant treaty must be checked individually, as treaty wording and relief mechanisms differ.

Renting out an apartment in Poland as a non-resident

Arrangements for renting out an apartment in Poland as a non-resident should be documented in writing. Although an ordinary residential lease may be valid without a written agreement, a written contract is important for evidentiary, tax and enforcement reasons. A lease concluded for a period longer than one year should be made in writing; otherwise, it is deemed to have been concluded for an indefinite period (Article 660 of the Civil Code) [5].

Under Article 659 of the Civil Code, the landlord undertakes to give the tenant use of the property for a fixed or indefinite period, while the tenant undertakes to pay agreed rent [5]. A well-drafted lease agreement should clearly identify:

• the parties and their service addresses,
• the property and its condition, preferably with an inventory protocol,
• the rent, service charges and utility settlement method,
• the deposit amount and return conditions,
• the term of the lease and termination rules,
• maintenance responsibilities and access rules,
• provisions on subletting, pets and business use.

Residential leases are also regulated by the Act on the Protection of Tenants’ Rights [6]. This legislation restricts termination rights and regulates issues such as rent increases, deposits and eviction procedures. A landlord cannot simply change locks or remove a tenant’s belongings after a dispute. Such conduct may create civil and criminal exposure.

Three exceptions that change the analysis

Exception 1 – occasional lease (najem okazjonalny). An occasional lease is available only where the landlord is a natural person who does not conduct business activity in renting premises. It applies to premises serving the tenant’s housing needs and must be concluded in writing for a fixed term of no more than 10 years. It requires a tenant’s notarial declaration submitting to enforcement and undertaking to vacate the property, identification of alternative accommodation, and a declaration by the owner of that alternative premises consenting to the tenant’s residence there; at the landlord’s request, that declaration must bear a notarially certified signature. The landlord must notify the competent tax office within 14 days from the commencement of the lease. These requirements arise from Articles 19a-19e of the Act on the Protection of Tenants’ Rights [6]. Landlords conducting business activity in renting premises may instead use an institutional lease (najem instytucjonalny), which also relies on the tenant’s notarial submission to enforcement but does not require alternative accommodation to be indicated [6].

Exception 2 – rental conducted as business activity. If the scale, organisation and continuity of the activity indicate that rental is a business, the tax and registration analysis may differ. Rental performed within a business may involve business income rules, VAT registration issues, accounting duties and different tax treatment. Classification depends on the facts, including the number of units, level of services, organisation and commercial purpose.

Exception 3 – short-term rental rules in Poland. Short-term stays resembling hotel or accommodation services should not automatically be treated as ordinary residential leases. Frequent guest turnover, cleaning, reception-type services, booking-platform activity and tourist accommodation may support classification as a service activity. This can affect income tax and VAT treatment, consumer-law obligations, local regulatory requirements and the relationship with the property’s housing community. Short-term rental outside business activity may in some cases still be taxed under the private lump-sum regime, but this depends on the facts. In addition, EU Regulation 2024/1028 on data collection and sharing relating to short-term accommodation rental services has applied since 20 May 2026 [7]. As of September 2026, the Polish implementing act, which is to introduce a central register of accommodation units, registration numbers to be displayed in online listings and administrative penalties, was still in the legislative process, so owners should monitor its final wording and entry into force.

VAT and landlord obligations in Poland

The lease of residential property exclusively for housing purposes is generally exempt from VAT under Article 43(1)(36) of the VAT Act [8]. The exemption does not apply to accommodation services, which are generally subject to the reduced 8% VAT rate. Commercial leases are usually subject to VAT unless another exemption applies, for example the small-business exemption, which from 1 January 2026 covers annual taxable sales of up to PLN 240,000 (Article 113 of the VAT Act) [8].

Landlord obligations in Poland also include maintaining the premises in a condition suitable for agreed use and settling charges according to the agreement [6]. The statutory allocation of repair obligations may be modified only within the limits set by mandatory tenant-protection rules.

Foreign landlords should also consider practical compliance matters. These include obtaining a Polish tax identifier (a PESEL number, or a NIP issued by the tax office for individuals without a PESEL), appointing a reliable contact person in Poland, ensuring that correspondence from tax authorities can be received, retaining payment records, documenting cash flows and verifying whether the lease income triggers reporting obligations in the country of residence.

Risk management for foreign property owners

The main risks are not limited to unpaid rent. Poorly drafted lease agreements can lead to lengthy eviction proceedings, disputes over deposits, unauthorised subletting, property damage and reputational concerns within a housing community. Tax errors may result in interest, penalties and challenges concerning the classification of rental activity.

This is informational material, not legal advice. The appropriate tax and lease structure depends on the owner’s tax residence, the nature of the property, the intended tenant, the duration of stays and the actual level of services provided. For a fact-specific review of a Polish lease agreement, rental tax position or short-term rental model, contact the Kopeć & Zaborowski legal team.

FAQ – Renting Out Property in Poland as a Foreigner

Does a foreigner pay tax in Poland on rent from a Polish apartment?

Yes. Rental income from real estate located in Poland is generally taxable in Poland, including where the owner is not a Polish tax resident.

What is the lump-sum tax on rental income in Poland?

For private rental, the standard rates are 8.5% on annual revenue up to PLN 100,000 and 12.5% on the excess. The tax is calculated on revenue, not net profit, and the annual PIT-28 return is due by 30 April of the following year.

Can a non-resident use an occasional lease (najem okazjonalny)?

Potentially yes, provided that the landlord is a natural person not conducting rental business activity and all statutory formalities are completed. These include a fixed-term written agreement, the tenant’s notarial declaration and the required documentation concerning alternative accommodation.

Is VAT charged on residential rent in Poland?

Residential rent used exclusively for housing purposes is generally VAT-exempt. Short-term accommodation and commercial leases may be treated differently.

Does a double taxation treaty eliminate Polish tax on rental income?

Usually not. Tax treaties generally allow Poland to tax income from real estate located in Poland. The treaty may, however, provide relief in the owner’s country of tax residence.

Can a landlord immediately remove a tenant who stops paying rent?

No. Eviction requires compliance with statutory termination and enforcement procedures. Self-help measures, such as changing locks, create legal risk.

Bibliography

[1] Act of 24 March 1920 on Acquisition of Real Estate by Foreigners.

[2] Act of 26 July 1991 on Personal Income Tax, in particular Article 3.

[3] Act of 20 November 1998 on Lump-Sum Income Tax on Certain Revenue Earned by Natural Persons (consolidated text: Journal of Laws of 2025, item 843), in particular Articles 2, 12 and 21.

[4] OECD Model Tax Convention on Income and on Capital, Article 6 (Income from immovable property).

[5] Act of 23 April 1964 – Civil Code, in particular Articles 659-692.

[6] Act of 21 June 2001 on the Protection of Tenants’ Rights, the Municipality’s Housing Stock and Amendments to the Civil Code, in particular Articles 6, 6a, 6b, 19a-19e and 19f et seq.

[7] Regulation (EU) 2024/1028 of the European Parliament and of the Council of 11 April 2024 on data collection and sharing relating to short-term accommodation rental services and amending Regulation (EU) 2018/1724.

[8] Act of 11 March 2004 on Tax on Goods and Services, in particular Articles 43(1)(36) and 113.