Taxes for a Pole owning property abroad
Taxes for a Pole owning property abroad
A Polish tax resident settles all of their income in Poland (the so-called worldwide income principle) – including income from renting or selling property abroad. However, the rules differ significantly depending on the country where the property is located.
Spain
Rental income from property in Spain is taxed first in Spain. As an EU/EEA citizen you will pay Spanish non-resident tax (IRNR) of 19% on net income. The tax is settled quarterly on Form Modelo 210.
In Poland this income must be declared in the annual tax return, but thanks to the double taxation treaty between Poland and Spain, the tax paid in Spain is deducted from the tax due in Poland.
In addition, the owner of a property in Spain pays the local property tax (IBI).
Dubai
There is no personal income tax in the United Arab Emirates. All rental income is settled solely in Poland, under the rules for private rental (flat rate: 8.5% up to PLN 100,000 of annual revenue and 12.5% on the excess).
Note
The above information is general in nature and does not constitute tax or legal advice.