Tax on renting the apartment. How to correctly settle? What are the rates?
2021-12-10 / Facebook

Renting your own apartment is one of the most popular and profitable ways to achieve passive income. More and more people are choosing to invest in real estate. The easy availability and relatively low cost of mortgage loans mean that although such an idea for additional money and securing the future is not new, it is still very popular. Like any form of earning, rent is also taxable. It is worth knowing how to correctly and profitably settle the profits with the tax authorities.

A person who does not run his own business can choose between two types of tax settlement:


In 2019, the flat-rate tax on rental income is 8.5%, provided that it does not exceed the limit of PLN 100,000. zlotys. This amount applies to the entire calendar year and all real estate owned and rented by the taxpayer - premises, apartments, land, etc.

When this amount is exceeded, the taxpayer automatically pays a higher rate, which is 12.5%.

The form of taxation cannot be changed during the year - the next choice can be made only at the beginning of the next accounting year. In the case of a lump sum payment until the day on which we receive the first income, and in terms of general rules, by January 20 of a given year at the latest. From 2019, there is no longer an obligation to physically submit a declaration to the Tax Office - it is enough to add "flat rate - apartment rental" in the title of the tax transfer.

Although the lump sum seems much more favorable at first glance, and the rates are much lower than the lowest tax threshold under general rules, it should be remembered that by choosing this form of taxation, we lose the possibility of deducting all costs of obtaining it. Therefore, it is worth mentioning in the contract that it is the tenant's responsibility to pay all additional fees (rent, utility bills, etc.) related to the maintenance of the premises.


In the case of settling the rental according to general rules, the tax is charged on the income. This means that our income may be decreased by the costs of obtaining it. There are currently two tax rates - 18% and 32%. The second higher rate is applied if our income during the year exceeds the amount of PLN 85,528. We will pay the higher tax only on the amount by which we exceed this threshold.

This form of settlements allows us to deduct from the income any expenses related to the rented apartment: interest paid on the loan taken out for the purchase of real estate, depreciation write-offs, utility charges or the purchase of equipment.

In addition to the option of settling costs, another advantage of choosing the general rules is the possibility of taking into account the tax-free amount of PLN 8,000. The amount that reduces the tax depends on your income. However, if you have many sources of income - income from work and rental income, remember that you can apply the exempt amount only once.


The choice of the form of taxation is not obvious and you should not blindly believe the popular opinion that the lump sum is the better choice - it all depends on the amount of our costs, the lease agreement we have signed, our other income and each situation should be considered individually.

We invite you to take advantage of our short-term apartment rental offer:

Zobacz nasze apartamenty na wynajem krótkoterminowy w Trójmieście: