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Polish Deal – a revolution in rental housing


by Monika Spotowska

17 August 2021

The bill on the so-called Polish Deal introduces significant modifications to taxation of income from lease, rental and other similar contracts.

According to the proposed regulations, income from renting private housing will not be accounted for on general terms. It will be obligatory to apply flat tax on recorded income. As a result, it will not be possible to classify expenditure incurred on the purchase of real property, including depreciation charges, as tax-deductible costs.

The same will apply to enterprises that rent out housing as part of their business activities. Under the Polish Deal, they will not be allowed to deduct depreciation charges either.

Additionally, as there are no transitional provisions, the ban on depreciation of residential property will affect premises that have been and are still being depreciated.

The Ministry of Finance justifies the changes by a constant increase in real property prices. Real properties are often considered as investments, which in turn raises their prices and negatively affects the market.


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Monika Spotowska

Attorney at law (Poland), Tax adviser (Poland)

Associate Partner

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