Publication date: 03.09.2024
Taxation Rules for Rental Income from Real Estate in Poland for Ukrainians
Investments in real estate in Poland are becoming increasingly attractive for Ukrainian citizens. However, when earning rental income from property in this country, it's important to understand the specifics of taxation. In this article, we will discuss the main aspects of taxation for rental income from real estate in Poland for Ukrainian citizens.
Tax Residency and Its Impact on Taxation
Before we delve into specific taxation rules, it's important to determine your tax status in Poland. Tax residency plays a key role in determining tax obligations.
Criteria for tax residency in Poland:
- Staying in Poland for more than 183 days in a tax year
- Having the center of vital interests in Poland
- Possessing a permanent place of residence in Poland
To determine your tax status, it is recommended to use the legal analysis of a situation service. This will help avoid potential problems with tax authorities in the future.
Types of Taxation for Rental Income
In Poland, there are several options for taxing rental income from real estate. The choice of the optimal option depends on the specific situation of the landlord.
Main types of taxation:
- Progressive tax scale
- Flat tax rate
- Tax based on registered income
To choose the most beneficial taxation option, it is advisable to use the lawyer's consultation service. A specialist can provide a legal analysis and propose an optimal solution.
Progressive Tax Scale
The progressive tax scale is one of the most popular options for taxing rental income from real estate in Poland.
Features of the progressive scale:
Tax rates depend on the amount of income earned
Possibility of applying tax deductions
Need for detailed record-keeping of income and expenses
When choosing this taxation option, it's important to correctly calculate your tax liabilities. For this purpose, the legal analysis of documents service can be useful, helping to avoid calculation errors.
Question
Can Ukrainians renting out property in Poland benefit from tax deductions?
Answer
Yes, Ukrainians renting out property in Poland can benefit from certain tax deductions, but this depends on their tax status and specific circumstances. For example, tax residents of Poland are entitled to standard deductions, such as costs for repairs and property maintenance. Additionally, there are special deductions for landlords who offer long-term rentals. However, it's important to note that for non-residents, the possibilities of using tax deductions may be limited. Therefore, to maximize the use of available tax benefits, it is recommended to seek a legal opinion of an advocate specializing in Polish tax law.
Flat Tax Rate
An alternative to the progressive scale is taxation at a flat rate. This option can be attractive for those who want to simplify the taxation process.
Features of the flat tax rate:
- Uniform tax rate regardless of income amount
- Simplified accounting system
- Limited possibilities for tax deductions
To determine if choosing a flat rate is appropriate, it is recommended to use the legal opinion of a lawyer service, who can assess all the advantages and disadvantages of this option for your specific situation.
Tax Based on Registered Income
This type of taxation is suitable for those who regularly rent out property and have a stable income.
Features of taxation based on registered income:
- Need to register a business activity
- Possibility to choose between different forms of taxation
- Requirement to maintain accounting records
To properly register and conduct business activities, it is recommended to use the lawyer in Poland service. A specialist can provide legal advice regarding the optimal form of business operation and taxation.
Tax Declarations and Reporting
Regardless of the chosen taxation method, it's important to file tax returns on time and maintain the required reporting.
Key aspects of tax reporting:
Deadlines for filing declarations
Tax declaration forms
Documents required to confirm income and expenses
To correctly fill out and submit tax declarations, it is recommended to use the verification of documents by a lawyer service. This will help avoid errors and possible sanctions from tax authorities.
Double Taxation
An important aspect for Ukrainians earning rental income from real estate in Poland is the issue of double taxation.
Key points regarding double taxation:
- Existence of a double taxation avoidance agreement between Ukraine and Poland
- Mechanisms for crediting taxes paid in Poland when taxed in Ukraine
- Need to obtain documents confirming tax payments in Poland
To correctly apply the provisions of the double taxation avoidance agreement, it is recommended to use the legal opinion of an attorney service. A specialist can provide a legal opinion on the optimal way to avoid double taxation.
Liability for Violation of Tax Law
Failure to comply with the rules for taxing rental income from real estate in Poland can lead to serious consequences.
Possible sanctions for violating tax law:
- Fines
- Interest for late tax payments
- Criminal liability in cases of serious violations
To avoid problems with tax authorities, it is recommended to regularly use the lawyer online or advocate online services for consultations regarding current requirements of tax law.
Taxation of rental income from real estate in Poland for Ukrainians is a complex topic that requires a deep understanding of both Polish and Ukrainian law. The right approach to taxation will help not only avoid problems with tax authorities but also optimize your tax burden. Ignoring or incorrectly fulfilling tax obligations can lead to serious financial and legal consequences, including significant fines, interest, and in serious cases - even criminal liability. Moreover, it can negatively affect your reputation and possibilities of doing business in Poland in the future. Therefore, it is extremely important to approach the issue of taxation responsibly and seek professional help in a timely manner. The legal marketplace CONSULTANT offers a wide range of services that will help you properly organize the taxation of your rental income from real estate in Poland. Don't risk your investments and reputation - turn to professionals who will ensure the correct fulfillment of all tax obligations and help you effectively use the available tax benefits.
