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In Poland, platforms such as Airbnb and Booking list approximately 87,000 apartments, houses, and rooms for rent (data from May 2024). Owners of these properties typically pay an 8.5% lump-sum tax. The issue is that this lump-sum tax is not always applicable, as short-term rental is not merely a rental but rather an accommodation service, which should be treated as a business activity.

What is the difference between rental and accommodation service?
The difference lies in whether the place is rented for long-term living or merely as temporary accommodation.

• Rental – if someone moves into an apartment and treats it as their home (for example, for a month or a year), then it is a private rental.
• Accommodation service – if someone offers short-term accommodation (for example, for a day or a week) and provides additional services such as bedding, internet, TV, or cleaning, then it is an accommodation service. This type of activity is more akin to hotel services and is subject to different rules.

What taxes must be paid?
If someone provides accommodation services, they should:

1. Register a business activity if their income exceeds PLN 3,225 per month,
2. Choose a form of taxation: progressive tax (12% and 32%), flat tax of 19%, or lump-sum tax (8.5% and 12.5% on the surplus above PLN 100,000),
3. Settle VAT on income (8% rate) or, if income is less than PLN 200,000 annually, benefit from a VAT exemption.
4. Additionally, if someone uses foreign portals like Airbnb or Booking, they should also pay VAT on their commissions (under the “reverse charge” system).

If, however, someone rents an apartment, house, or room privately (for a longer period), they can settle taxes via a lump-sum tax or as a business activity – in which case the progressive tax, flat tax, or lump-sum tax options also apply.

Polish tax authorities check whether owners correctly settle their taxes. Controls particularly target individuals renting apartments and rooms for short periods, as this type of activity generates significant income, a portion of which does not reach the state budget.

Thanks to the EU DAC7 directive, platforms such as Booking and Airbnb have been required to report all transactions to Polish authorities since January 2023, which facilitates owner control.