Tax on rental income from property abroad for Polish tax residents (2026)

If you are a Polish tax resident and you rent out a flat in Cyprus, Spain or Thailand, Poland still has a claim on that income. How big the claim is depends on the double-tax treaty between Poland and the country where the property stands. This article explains the rules as they stand in 2026, which treaty method applies to the countries our clients ask about, how to report it, and what happens when you sell. It is informational and not tax advice; check your own case with a licensed Polish tax adviser, because one wrong assumption about the treaty method changes the result.

The starting point: worldwide income

A person with their home in Poland is taxed in Poland on income from anywhere in the world. The country where the property stands usually may tax the rent too, because rent from immovable property is generally taxable where the property is. The treaty then decides how Poland avoids taxing the same income a second time. If you move your tax residence abroad, the whole picture changes; see tax residency when relocating.

Rates in Poland: ryczałt only, no choice

Many articles still talk about choosing between a flat rate and the tax scale. That was true until the end of 2022. Since 1 January 2023, rental income of an individual who does not run a business can be taxed only by ryczałt on recorded revenue: 8.5% on revenue up to PLN 100,000 a year and 12.5% on the excess. There is no personal allowance and no deduction of costs, repairs or depreciation: the tax is charged on revenue, not profit. The advance payments are monthly and the annual return is PIT-28, filed by 30 April of the following year. One portal states that the PLN 100,000 limit counts domestic and foreign rent together; keep that in mind if you also let a flat in Poland.

A draft law for 2027 would tax revenue above PLN 100,000 at 15% where the tenant is a related party, for example your own company. It is a draft, and it does not concern an ordinary private tenant.

The two treaty methods

Poland's tax treaties use two methods to avoid double taxation.

Exemption with progression. The foreign rent is exempt from tax in Poland, but it is taken into account to determine the rate applied to your other Polish income. If your only income is the foreign rent, you usually owe nothing in Poland and file no return on it; this was the position of the tax authority in a 2026 individual interpretation on a flat in Cyprus (0115-KDIT1.4011.14.2026.1.MK, 12 March 2026), as reported by a Polish legal portal.

Proportional credit. The foreign rent is taxed in Poland as if it were Polish income, and the tax you paid abroad is deducted from the Polish tax, up to the part of the Polish tax that falls on that income. You pay the higher of the two taxes, not the sum. If the foreign tax was lower than the Polish tax, you pay the difference in Poland; if it was higher, you pay nothing more in Poland but do not get the excess back.

The difference is large. Under exemption you may owe nothing extra. Under credit you pay at least the Polish ryczałt rate in total on the rent.

An illustration with assumed numbers, not market data. Rent of PLN 40,000 a year. Polish ryczałt at 8.5% is PLN 3,400. If you paid PLN 2,000 of tax in the other country, the credit method leaves about PLN 1,400 to pay in Poland. If you paid PLN 3,600 abroad, nothing more is due in Poland, and the PLN 200 above the Polish tax is lost. Under the exemption method the Polish tax on that rent would be zero.

Which method applies to which country

The method sits in each treaty, and the Multilateral Instrument (MLI) has changed it in a number of them. The list below uses what we could confirm; where we could not, we say so.

• Cyprus: exemption with progression, per the 2026 interpretation above and the treaty of 1992 as amended.
• United Arab Emirates: proportional credit. A protocol signed in December 2013 replaced exemption with the credit method.
• Thailand: proportional credit. The Ministry of Finance lists Thailand among the treaties where the MLI replaced exemption with credit from 1 January 2023.
• Spain: the same list, from 1 January 2023.
• Greece: the same list, from 1 January 2022.
• Portugal: the same list, from 1 January 2021.
• Italy: exemption with progression, according to secondary sources, including one on rental from a flat in Italy. We did not read the treaty text.
• Turkey: the one source we found says Poland exempts income taxable in Turkey, which is the exemption method. We could not read the treaty text.
• Georgia: the 1999 treaty provides the credit method (article 24). A new treaty was signed in July 2021; we could not confirm that it is in force or what method it uses.
• Montenegro: we could not confirm the method. The treaty originally concluded with Yugoslavia applies. Ask an adviser.

Two cautions. First, the Ministry's list says the MLI changed the method in these treaties; we did not check article by article whether the change reaches income from immovable property in every case. Second, treaties and their interpretation change. Before you sign, confirm the current method for your country on the Ministry of Finance's treaty pages.

What to file

• PIT-28 for ryczałt, by 30 April. If the credit method applies, the foreign rent and the foreign tax are shown in the foreign-income part of the form.
• Attachment PIT/ZG for each country from which you had income, showing the income in PLN and the tax paid abroad. Convert amounts to PLN using the rule for foreign income (the average rate of the National Bank of Poland on the last working day before the date the income was received; confirm the exact rule with your adviser).
• Under exemption with progression, if you have other income taxed on the scale, the foreign income is shown on PIT-36 with PIT/ZG so the rate can be calculated. If it is your only income, no return is needed.

The relief known as ulga abolicyjna, which compensates the switch from exemption to credit, is described by the sources as covering employment, self-employment, business and copyright income. Do not assume it applies to rent.

Selling the property

Rent is one tax event, the sale another.

• If you sell before the end of the fifth calendar year counted from the end of the year in which you bought, the gain is taxed in Poland at 19% and reported on PIT-39 by 30 April of the next year.
• After that period, the sale is exempt from the tax and no return is needed.
• If you spend the proceeds on your own housing needs within three years of the end of the year of sale, the relevant part of the gain can be exempt.
• Tax paid abroad on the sale is shown on PIT-39. As with rent, the treaty determines whether Poland taxes the gain at all or only gives credit; the foreign country usually taxes a sale of its own real estate.

Calculate the gain in the right currencies: the purchase price and the sale price are converted into PLN at the rates of the dates of the transactions, so the exchange rate can create a gain, or hide a loss, that has nothing to do with the property.

Practical advice

• Keep the foreign tax return and proof of payment. Without them there is no credit.
• Keep the purchase contract, proof of the price and costs, and notes on improvements for the sale.
• Compare the net result country by country before you buy, not after. Our guide to rental yield by country separates gross from net but does not include Polish tax; add it. The calculators let you model your own numbers.
• If you also have to send money abroad or report to the National Bank of Poland, see how to send money abroad to buy property.

FAQ

Do I pay tax twice, in Poland and abroad? No: the treaty prevents it, through exemption or credit. But under credit you pay at least the Polish rate in total. Can I choose the tax scale instead of ryczałt? Not for private rental since 2023. Do I have to file anything if the rent is exempt in Poland? Not if it is your only income. If you also have Polish income taxed on the scale, report the foreign income so the rate can be set. Which country has the lowest foreign tax on rent? That depends on local rules, which are not covered here; the Polish result still depends on the treaty method. Does the 5-year rule apply to property abroad? The Polish rule applies to a Polish resident's sale; the foreign country may still tax the gain. When is PIT-28 due? By 30 April of the year after the income.

How we help

We model net returns after local and Polish tax and coordinate local lawyers and tax advisers. This page is informational only and is not legal, tax or investment advice. Rates, thresholds and treaty methods change; confirm them with a licensed Polish tax adviser before you decide.