Your Guide to Stress-Free Short-Term Rentals in Poland

Overview

Airbnb is the new normal as everyone now realizes that Airbnb is connected with short-term renting. Although the idea of short-term rental is enticing, the activity could become less pleasant and stressful due to a lack of awareness of the different rules controlling the tourist lodging company on various levels in the accommodation locality for newcomers to the industry and hosts who are not aware of the law. Here are a few guidelines to help you conduct the business in Poland more easily. Other popular terms for Airbnb in Poland are vacation rental, holiday accommodation, tourist accommodation, etc.

Overview

There is no national short-term rental association in Poland at the time of compilation of this information, but you may consider joining the European Holiday Home Association on LinkedIn.

Are there National Rules or Regulations Governing Short-Term Rentals in the Country?

In Poland, there is no one law governing short-term rentals; rather, city councils have different rental regulations. Local governments may impose restrictions on Airbnb rentals, such as registration and tax obligations. Although the maximum tax rates and registration thresholds in Poland may be decided by the Council of Ministers. What is applicable is still agreed upon by local authorities.

In Krakow, you are required to register your short-term rental accommodation for free as a facility providing a hotel service that is not a hotel facility and camping site before your rental activity can be considered legal. You are also required to pay the tourist tax that applies to the city.

These rules vary from place to place, therefore, it is advisable to find out the regulations that are in effect where your property is located and check with your local government. Alternatively, subscribe to the Lodge Compliance to easily access all the pertinent information related to your properties.

Is there any National Tax that affects short-term rental?

The answer is that you must pay taxes on your Airbnb rental income. The three possible taxes are:

Income Tax
VAT
Regional/Municipal Tax

Income Tax

Hosts are required to pay taxes on the short-term rental income; the tax regimes that you may choose from in this category are;

The Progressive scale method: In this tax system, net income—the total gross income plus allowable deductions—is used to determine income tax. Maintenance payments for the property, interest on the loan as opposed to the loan payment, and renovation costs for the preservation of the property as opposed to aesthetic appeal are all deductible expenses. The income tax rates range from 17% to 32% depending on how much money was made during the reporting period. If your rental activity qualifies as a business under this regime, a flat rate of 19% rate is applicable. If you offer additional services like breakfast, reception, and other hotel-related services, your rental income can be regarded as derived from a business. The deadline for filing tax returns and paying associated liabilities falls on 30 April of the year following the year of earning income
The Flat Rate tax method: this tax regime is also known as lump sum taxation when a person's gross income is subject to a flat tax rate of 8.5% for gross income under PLN 100,000 and 12.5% for gross income exceeding PLN 100,000. In this tax regime, no expenses are deductible. The deadline for filing tax returns and paying associated liabilities falls on 31 January of the year following the year of earning income.

VAT

If your rental activity is regarded as a business in Poland once the prerequisites for VAT registration are completed, you must register for VAT and charge VAT to your visitors. If your annual gross revenue, including income from other sources, surpassed PLN 200,000 but you are not considered a business, you must register for VAT. The VAT rates vary per the visitor's country and are updated often.

Authorized parties from EU member states are exempt from paying VAT, while the standard reduced VAT rate for hotels and other lodging services is 8%.

Irrespective of the amount earned non-resident property owners in Poland must register for VAT.

Visit the Polish Tax Authority VAT page.

Tourist tax

Tourist taxes must be collected from your visitors in municipalities and cities where the local council authority has set a tourist tax rate. If you would like to find out the applicable rate, please check with your local authorities. Alternatively, you can go ahead and subscribe to the lodge compliance premium package for your property to learn about all the requirements that are relevant to your property.

For further details, please contact

Ministry of Finance

Ministerstwo Finansów

ul. Świętokrzyska 12

00-916 Warszawa,

Telephone: +48 (22) 694 55 55

E-mail: kancelaria@mf.gov.pl

Webpage:https://www.gov.pl/web/finance

Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

There is no national permit, license, or registration for short-term rental owners in Poland instead, you may be required to register for other licenses such as fire, electricity, municipality urban planning, co-owners consent, etc., at your local authority in addition to applying for tax permits at various levels of government.

It is crucial to confirm that you have the required registrations with the local and regional authorities. To access the requirements for your particular location and property in Poland, you should subscribe to the Lodge Compliance.

Poland

Income Tax

VAT

Tourist tax

Disclaimer

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