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Poland

Income taxes are moderate in Poland

Last Updated: June 03, 2015

INDIVIDUAL TAXATION

Nonresidents are taxed on their Polish-sourced income. Married couples are taxed separately.


INCOME TAX

Taxable income is generally calculated by deducting income-generating expenses from the gross income. Taxable income from all sources is then aggregated and then taxed at progressive rates.

Income Tax

TAXABLE INCOME, PLN (€) TAX RATE
Up to 85,528 (€20,659) 18%
Over 85,528 (€20,659) 32% on all income over €20,659

RENTAL INCOME
Rental income is generally taxed at the progressive rates. The taxable income is computed by deducting income-generating expenses from the gross rent.


CAPITAL GAINS TAX

Capital gains from the sale of real estate are tax-exempt if the individual has owned the property for at least five years before the sale.

Capital gains incurred for properties sold within five years of acquisition are subject to capital gains tax at a flat rate of 19%. The acquisition price and transaction costs are deductible from the selling price to arrive at the taxable gain.

Taxpayers who have acquired the residential property before 01 January 2007 are subject to different rules. A flat rate of 10% is levied on the sales proceeds less transaction costs.


VALUE ADDED TAX

VAT is generally levied at a flat rate of 23%. A preferential rate of 8% may apply in some transactions.

The lease of immovable property for the purpose of accommodation (not for business purposes) is VAT-exempt.

Land sales and building sales are generally subject to 23% VAT. The preferential rate of 8% may apply if the residential premises do not exceed 150 square meters.


PROPERTY TAXES

Real Estate Tax

Property owners are liable to pay this tax. The annual real estate tax liability depends on the location and type of the property. The tax rates are as follows:

REAL ESTATE TAX

PROPERTY QUALIFICATION TAX PER SQ MT, PLN (€
Land PLN0.89 (€0.22)
Buildings PLN23.03 (€5.56)

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are taxed at the corporate tax rate of 19%. Income-generating expenses are deductible when calculating taxable income.

Comments

Eleonora | March 25, 2010

I am a US citizen and live in the US. If I sell a 1/2 share of a building I inhertited 3 years ago.
Will I have to pay a tax in Poland or just the US. I understand there is an agreement not to have to pay double.

So is it Poland or the US and how is it done if in Poland and how much? In the US its with a 1099? and depending on your over all income I believe.

Eleonora | March 25, 2010

I am a US citizen and live in the US. If I sell a 1/2 share of a building I inhertited 3 years ago.
Will I have to pay a tax in Poland or just the US. I understand there is an agreement not to have to pay double.

So is it Poland or the US and how is it done if in Poland and how much? In the US its with a 1099? and depending on your over all income I believe.

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Title: Poland capital gains tax rates, and property income tax

Description: A complete guide to Polish capital gains tax rates, property and real estate taxes

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