Table of Contents:
- What is short-term rental?
- Can short-term rental be settled as private lease?
The National Tax Information (KIS) confirms that short-term rental of residential properties can be classified as private lease, as it does not have an organized or continuous nature and is therefore subject to taxation as a lump sum on registered income.
What is short-term rental?
Long-term rental is usually a lease agreement lasting no less than 12 months, with tenants that we can verify. Meanwhile, short-term rental refers to renting apartments or houses on a daily basis, in a system similar to hotel stays. This means renting a property from a private person or a company for one or several nights, sometimes for a few weeks, with the offer typically made through dedicated online platforms. Business activities in the field of short-term rentals usually fall under PKD number 55.20.Z, which refers to “tourist accommodation and short-term lodging facilities.”
Can short-term rental be settled as private lease?
In a series of individual interpretations, the KIS confirmed that under certain conditions, short-term rental does not have to be settled within the framework of individual business activity (which entails paying social security contributions and different taxation methods). In the interpretation dated March 21, 2024 (reference no. 0115-KDIT1.4011.10.2024.2.MST), a factual situation was analyzed where the applicant occasionally rented an apartment; the purpose of the rental was to cover the maintenance costs of the property as well as to support the household budget. The duration of the apartment rental would depend on demand and could range from several days to a few weeks at a time, depending on the season. The applicant planned to advertise the apartment’s availability through popular online platforms and did not intend to cooperate with third parties managing properties for rental purposes. The applicant did not plan to offer any additional services to tenants (e.g., reception, office services, providing meals, periodic cleaning, changing towels or linens during the stay) or use third-party help, including employees or contractors. The frequency of renting the apartment was hard to predict due to its occasional and short-term nature, seasonality, and the applicant’s use of the apartment for personal purposes unrelated to rental. The apartment would also be used by the applicant for her own needs (unrelated to renting to third parties), as she intended to make it available free of charge to close family members who periodically visit her and her husband, as well as the applicant’s mother.
Under these circumstances, it was concluded that if the short-term rental of the apartment is occasional, the activities related to it are not conducted in an organized and continuous manner, no employees are hired to handle the tenants, and the landlord does not use accounting or property management services – then this rental constitutes a source of income as specified in Art. 10(1)(6) of the PIT Act (so-called private lease). Income from this rental is taxed as a lump sum on registered income at a rate of 8.5% (for income up to PLN 100,000 annually) or at a rate of 12.5% (on the excess over PLN 100,000 annually).
