Bez kategorii | Data: 2024-04-08

Short-Term Rentals and Taxes 2026: What Fees Apply and How to File?

Short-term rental refers to letting an apartment on a nightly basis, ranging from a single night to a few weeks. This system has become highly popular in recent years. Property owners must remember that under specific circumstances, they are legally obligated to report their income and pay taxes. Otherwise, they face significant financial penalties. However, they are not always required to register a formal business.

Below, we explain the difference between a short-term rental and a lodging service and how they are taxed. We also discuss who must register a business when using platforms like Booking or Airbnb, the available PIT (Personal Income Tax) filing options, and VAT considerations for reservation portals.

Short-Term Rental Tax vs. the Definition of Nightly Rentals

Renting out property via platforms like Booking or Airbnb does not always necessitate starting a business. Much depends on whether the owner manages listings independently or signs a contract with a professional management company (an operator).

The Difference Between Rental and Lodging Services: PKD Codes

When listing an apartment on a booking platform, owners often think of it as “renting.” However, there is a subtle but vital legal distinction. Many owners who manage their own listings on Booking or Airbnb are technically providing lodging services rather than property rental. In Poland, the key distinction lies in the PKD (Polish Classification of Activities) codes:

• Property Rental: Classification 68.20 – Rental and management of owned or leased real estate.
• Lodging Services: Classification 55.20 – Holiday and other short-stay accommodation.

Lodging vs. Rental: In Practice Lodging services typically operate on a daily or weekly cycle, whereas rental is usually settled monthly or annually. Crucially, lodging is a comprehensive service: the owner provides not only the space but also towels, linens, internet, TV, cleaning services, and sometimes breakfast. Under tax law, these additional amenities classify the activity as a lodging service.

When is Registering a Business Mandatory?

If a property owner independently offers lodging services through booking platforms, registering a business may be required. Even if the owner fails to do so, tax authorities may treat the income as business revenue, leading to severe tax consequences.

The Renters Advantage: Owners who partner with a professional operator like Renters.pl are generally not required to register a business. In this model, the operator (registered as a legal entity) assumes the responsibility for the commercial activity, while the owner’s income may be treated as private rental.

How to File PIT (Personal Income Tax)?

If providing lodging services directly, the income must be filed as business revenue. Owners have three options for PIT:

1. General Rules (Tax Scale): 12% for income up to PLN 120,000 and 32% for the surplus. There is a tax-free threshold of PLN 30,000.
2. Flat Tax: A steady 19% on all income, regardless of the amount (no tax-free threshold).
3. Lump-sum Tax (Ryczałt): 8.5% on revenue up to PLN 100,000 and 12.5% on the surplus.

Deadlines and Documentation:

• PIT Advances: Must be paid by the 20th of the following month.
• Annual Filings: Forms PIT-36 (General/Flat) or PIT-28 (Lump-sum) must be submitted by April 30th of the following year.

What Expenses Can You Deduct?

Owners registered as businesses can deduct costs related to the activity, such as:

• Utility bills (electricity, water, gas, internet).
• External services (cleaning, professional laundry).
• Furniture and appliance purchases.
• Renovation costs and agency commissions. Note: Deductions are not available for those choosing the Lump-sum (Ryczałt) method.

VAT in Short-Term Rentals

• Subjective Exemption: If annual turnover is below PLN 200,000, you may be exempt from VAT.
• Active VAT Payer: Exceeding the limit requires registration. Lodging services typically benefit from a reduced 8% VAT rate.
• Import of Services: Even VAT-exempt owners must settle VAT on commissions paid to foreign portals like Booking or Airbnb (Reverse Charge).

Fiscal Cash Registers and Documentation

When providing lodging to individuals, a fiscal cash register is generally required to issue receipts. Exemptions apply if:

• Annual turnover is below PLN 20,000.
• All payments are made via bank transfer/post and are clearly documented. Note: If guests pay on-site (e.g., for an extra night), an online fiscal cash register is usually mandatory.

Summary

Taxation for short-term rentals depends on several factors, including the volume of bookings and the model of management. To maximize profits and ensure legal compliance, owners should always consider their specific situation.

Need Help? Whether you are a business owner or an individual, Renters.pl works with owners in various tax situations. We always encourage consulting with a tax specialist to ensure you are fully aware of your obligations and opportunities.