How a tax resident of Poland, Germany, Czechia, Lithuania, Latvia or Estonia is taxed on rent and sale gains from property abroad. A summary with links.
If you live in one EU country and rent out or sell a property in another, two countries have a say. The country where the property stands usually taxes the rent and the sale gain. Your country of residence taxes you on worldwide income and, through a double taxation treaty, either gives credit for the foreign tax or exempts the foreign income (sometimes counting it to set your rate). This article is a short summary for tax residents of six countries. It is not a calculation guide: each country has a separate article with details, linked in every section.
Rates below were checked in October 2026 on public sources. Several could not be confirmed on the official page and are marked as reported. Always check the current year.
How the two countries interact
Three steps are the same everywhere. First, the property country taxes the rent and the gain under its own law. Second, your residence country includes the income in your return. Third, the treaty between the two countries sets the relief: credit (foreign tax is deducted from the home tax, up to the home tax on that income) or exemption (the income is not taxed at home, though it may raise the rate on your other income). Which method applies depends on the specific treaty, so the same resident can be treated differently for Spain and for Georgia. Read the treaty or ask an adviser.
Poland
A Polish tax resident is taxed on worldwide income. Private rental outside a business is taxed by lump sum at 8.5%, and 12.5% on the part above PLN 100,000 per year (this applies from 2023; the progressive scale is no longer available for private rent). The treaty method decides whether foreign tax is credited or the income is exempted with progression. A sale within five calendar years after the year of purchase is taxed at 19% on the PIT-39 return, with a relief for money used for your own housing needs. Details and the main foreign destinations are in tax on foreign rental income for Polish residents. Official portal: podatki.gov.pl.
Germany
A person with a home or habitual abode in Germany is taxed on worldwide income. Foreign rent is declared in the return (form Anlage AUS for foreign income) and taxed at the progressive rate, with the treaty method deciding whether the foreign tax is credited or the income is exempted with the progression clause. For private sales, the general rule applies to foreign property as well: a gain on a sale within ten years of purchase is taxable, with exceptions for own use. See foreign property tax return for German residents. Official source: Federal Ministry of Finance.
Czechia
A person with a permanent home or habitual stay in Czechia is taxed on worldwide income. Rent is part of the income taxed at 15%, with 23% on the part above an annual threshold (reported for 2026 at about CZK 1,764,000 of the tax base). Foreign tax is credited or the income exempted depending on the treaty. For property bought from 2021, a sale after ten years is reported to be exempt; a shorter holding period can be taxable, with an own-home exemption. We could not confirm every detail on the official page. See foreign property tax return for Czech residents. Official source: Finanční správa.
Lithuania
Lithuanian residents are taxed on worldwide income. A package of income tax changes from 2026 was reported, including progressive bands and a shorter holding period for the sale exemption, but the sources we found contradicted each other, so we give no rates here. Check the current rates with the tax inspectorate before you plan. See foreign property tax return for Lithuanian residents. Official source: VMI.
Latvia
Latvian residents are taxed on worldwide income. We found only older sources for rental and sale rates, and no confirmation for 2026, so we do not state rates; the capital gain on real estate has historically had its own rate and a holding-period relief, which you should confirm. See foreign property tax return for Latvian residents. Official source: VID.
Estonia
Estonian residents are taxed on worldwide income, and the flat rate is reported at 22% in 2026. Foreign rent is declared on the annual return and the treaty gives the relief. A sale of your place of residence is reported to be exempt, once per two years, and other sales are taxed on the gain. Confirm the conditions on the tax board site. See foreign property tax return for Estonian residents. Official source: EMTA.
What to do before you buy
- Find out which treaty applies and which method it uses for rent from immovable property.
- Keep the lease, the foreign tax return and the proof of tax paid; you need them to claim credit.
- Plan the sale: holding periods differ by country and can change.
- Ask a local adviser in both countries; use our calculators only for rough estimates.
FAQ
Which country taxes the rent first? The property country taxes it at source, and your home country then includes it and gives relief under the treaty.
Do I pay twice? Usually not if the treaty and your documents are in order, but the combined burden can be higher than either rate alone.
Can I choose the lower rate? Generally no; the method follows the law and the treaty, not preference.
Do these rules change if I move country? Yes. Residence in a new country applies its own rules; see tax residency when relocating.
Is this the full picture? No, this is a summary. Use the country articles linked above.
How we help
We are a trilingual platform that finds properties and coordinates independent local lawyers and tax advisers. This text is informational and is not legal, tax or investment advice; rates and holding periods change, so verify current rules with the tax authority of your country of residence.