Rental Tax

Podatek Od Najmu - Homely Estates - Biuro Nieruchomości - Zdjęcie w tle
The upcoming start of the year will involve a change to the property rental income tax regime. What tax on rental property will apply from the beginning of 2023? Find out how and by when to pay tax on property rental income.

Rent settlement in 2022 - transition period

With the change in the rules for accounting for tax on the rental of a flat, the legislator has set a transitional period, which stipulates that in 2022 landlords can use the existing taxation rules. This means that the taxpayer can choose between two taxation options:
  • the general rules according to the tax scale;
  • lump sum on registered income.
The first way of taxing this income is particularly advantageous for those who incur high costs in generating income from property rental.
This method allows for the deduction from income of costs such as expenses for the finishing or renovation of the property in question, mortgage interest or depreciation, and even administrative rent. Income not exceeding PLN 120 000 is subject to 12% tax, while higher income is subject to 32% tax.
A lump sum is a simpler settlement, calculated solely on income without deductibility of deductible costs and not counting towards the tax-free amount. It is calculated on the basis of a lower rate of 8.5% for revenue up to PLN 100 000 and 12.5% for higher revenue.

What tax will we pay on renting a flat from 2023?

With effect from the beginning of 2023, any non-business-related rental will be subject to a flat-rate tax return on rental income from real estate. This means no deductibility of deductible expenses.

When should I account for tax on the rental of a flat?

Private rental income arises when the money goes to the landlord. So, for tenants paying rent ‘in advance’ for the coming month, income for January 2023 will need to be accounted for in December of the previous year, the month when the landlord receives the money.

Where and by when should I pay tax on property rental income?

Tax on rental income from real estate should be paid by the 20th of the month following the month in which the income appeared. Landlords use a micro-tax account to pay this tax.
A micro-account is an account number generated individually for each taxpayer on the basis of his/her PESEL number or NIP number (if the taxpayer is an entrepreneur). The micro-account generator can be found on the government website available by clicking on this LINK.
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