Private Rental on Lump-Sum Tax in Poland 2026
Private property rental on lump-sum tax in Poland 2026. Rate 8.5%, VAT exemption, limits, rental agreement template. Practical guide.
Private rental is one of the most popular sources of passive income in Poland. If you rent out an apartment, commercial space, or plot of land — and you are not a registered VAT taxpayer — the lump-sum tax (ryczałt) at 8.5% is the simplest form of taxation.
🏠 Rental income & ryczałt 2026 — 8.5% rate and VAT exemption
Property rental is the most popular ryczałt activity. 8.5% rate, VAT exemption up to 200,000 zł, PIT-28 filed once a year. Compare private rental vs business rental (JDG).
Private rental vs JDG — comparison
The legal form affects taxes, VAT, and costs.
| Feature | 🔒 Private rental | 🏢 Business rental (JDG, ryczałt) |
|---|---|---|
| 📝 Registration | None — notify the tax office before first rental (PIT-2N / NIP-7) | Registered in CEIDG as a business activity |
| 💸 VAT | Exempt (rental service) | Exempt up to 200,000 zł threshold, then optionally active |
| 📊 Tax rate | 8.5% ryczałt (or tax scale) | 8.5% ryczałt |
| 📋 Tax return | PIT-28 once a year (by 30 April) | PIT-28 once a year + monthly advance payments |
| 🧾 Deductible costs | ❌ None — ryczałt on gross revenue | ❌ None — ryczałt on gross revenue |
| 🏥 Social security (ZUS) | ❌ No mandatory contributions | ✅ Mandatory ZUS (after startup relief) |
🏠 VAT exemption
Property rental is VAT-exempt until you exceed 200,000 zł annual turnover. After exceeding, you can remain exempt (up to 150,000 zł VAT-free) or become an active VAT payer. If rental is part of a JDG on ryczałt, the threshold applies to your entire activity.
📋 PIT-28 declaration
Whether private or JDG, you settle tax on PIT-28 by 30 April of the following year. In JDG, you also pay monthly advances by the 25th of each month. No advance payments for private rental — you pay everything once a year.
Important: Even for private rental, you must notify the tax office before the first payment (form NIP-7 or NIP-8). Missing notification = fine. The 8.5% ryczałt is usually better than the tax scale when costs are low (old apartment, no mortgage). If you have a mortgage — check the tax scale, because interest is deductible.
Renting out property? Let's check if ryczałt is your best option.
Let's talk →Based on art. 6 sec. 1c of the Lump-Sum Tax Act (Dz.U. 2024 poz. 1245 as amended) — 8.5% rate on rental. VAT exemption: art. 43 sec. 1 item 36 and 38 of the VAT Act. Turnover threshold: 200,000 zł (art. 113 sec. 1). Informational material — consult a tax advisor.
Lump-Sum Tax Rate for Private Rental
In 2026, the lump-sum tax rate for private rental is 8.5%. This applies to the rental of:
- Apartments and houses
- Commercial premises
- Building and agricultural plots
- Garages and parking spaces
Condition: the rental must take place outside of business activity — meaning you do not have the property registered in the business registry (CEIDG) as a business asset.
Who Can Use the 8.5% Lump-Sum Rate?
The lump-sum rate for private rental is available to individuals who:
- Are not registered VAT taxpayers for this rental
- Do not conduct business activity in the scope of rental (the property is not a business asset)
- Rent the property under a lease agreement (not a tenancy/leasing agreement)
If you operate as a sole proprietorship (JDG) and the property is a business asset, the lump-sum rate applicable to your business activity applies — not the 8.5% private rental rate.
VAT Exemption — up to 200,000 zł
Private rental is exempt from VAT (Art. 43 sec. 1 pt. 36 of the VAT Act). But this exemption only applies when you are not an active VAT taxpayer.
If you voluntarily register as a VAT taxpayer for rental:
- You must issue VAT invoices
- VAT rate: 23% (23% on apartments, 8% on residential premises in some cases)
- You must file JPK_V7 (unified VAT control file)
- You lose the exemption for the next 5 years
Most private landlords remain on the 8.5% lump-sum rate without VAT.
How to Settle the Lump-Sum Tax on Rental?
Revenue Register
You must keep a simple revenue register for rental. Each month:
- Date of revenue
- Amount (gross = net, since no VAT)
- Tenant's full name
- Property address
You cannot deduct any costs from revenue on the lump-sum tax. But you can deduct:
- Health insurance contribution (9%) — if you have no other income
- Voluntary social insurance (ZUS) contributions — if you pay them
PIT-28
Income from private rental on the lump-sum tax is settled on the annual tax return (PIT-28). Filing deadline:
- By April 30, 2026 for tax year 2025
- By April 30, 2027 for tax year 2026
Private Rental vs. Business Activity (JDG)
The difference is crucial:
| Aspect | Private Rental | Rental within JDG | |--------|----------------|-------------------| | Lump-sum rate | 8.5% | Depends on PKD (8.5–17%) | | VAT | Exempt | May be required | | Costs | Cannot be deducted | Can be deducted (on tax scale/flat tax) | | ZUS | No mandatory contributions | Mandatory ZUS | | PIT | PIT-28 | PIT-28 / PIT-36 / PIT-36L |
When Does Rental Become a Business?
The Tax Office may classify rental as business activity if:
- You rent many properties (systematically, for profit)
- You offer additional services (cleaning, catering, reception)
- You buy properties specifically for rental
Then the lump-sum rate may increase to 12.5% or 15% (services), or 23% VAT may apply.
Private Rental Agreement Template
Key elements of a rental agreement:
- Parties — landlord and tenant (name, PESEL, address)
- Subject — exact address and description of the property
- Rent — amount, payment deadline, transfer method
- Deposit — usually 1–3× the monthly rent
- Term — start and end dates
- Utility settlements — electricity, water, gas, internet
- Subletting prohibition — unless the agreement states otherwise
- Final provisions — penalties, termination, court jurisdiction
Short-Term Rental (Booking, Airbnb)
Short-term rental is a separate category. If you offer rooms via Booking or Airbnb:
- Lump-sum rate: 8.5% — if you rent rooms in your own apartment (hospitality)
- Lump-sum rate: 12.5% or 15% — if it's full-service hospitality (reception, cleaning)
- It may be classified as business activity — then ZUS and registration apply
For more details, see our article on rental via Booking and Airbnb.
Tax Reliefs and Deductions for Private Rental
On the lump-sum tax for private rental, you can deduct:
- Health insurance contribution (9%) — if you have no other income covered by this contribution
- Voluntary social insurance (ZUS) — proportionally to the limit
- IKZE — contribution to an individual retirement account
- Tax reliefs — child relief, rehabilitation relief
You cannot deduct renovation costs, administrative rent, or depreciation.
FAQ
Do I have to pay ZUS on private rental?
No. Private rental does not trigger a ZUS obligation. You may pay contributions voluntarily.
Does private rental count toward the 200,000 zł VAT exemption limit?
No. Rental is exempt from VAT (Art. 43), regardless of the revenue amount. The 200,000 zł limit applies to taxable sales.
Can I deduct renovation costs?
No. On the lump-sum tax, you cannot deduct costs. Costs can only be deducted on the tax scale or flat tax.
How much tax will I pay on 30,000 zł per year from rental?
Lump-sum: 30,000 × 8.5% = 2,550 zł in tax. Tax scale: 30,000 − 12,000 (tax-free amount) = 18,000 → 3,240 zł (minus the reducing amount).
Need Help?
I handle accounting for JDG and private rental — revenue registers, PIT-28, lump-sum tax, rental VAT. From 49 zł + VAT per month.
Contact me at [email protected] or visit oxyok.com/en.
Note: Private rental lump-sum: rate 8.5%, VAT-exempt. Costs cannot be deducted. PIT-28 by April 30. Consult an accountant before making a decision.
Questions about accounting?
I run accounting for sole proprietors from 49 zł + VAT per month.
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