Renting an Apartment in Spain and Taxes in Poland – A Practical Guide
More and more Poles are deciding to buy property in Spain, treating it not only as a place to relax but also as a source of additional income from rental. However, the question arises: how do you settle income from renting an apartment in Spain with the Polish tax office? Do you have to declare such income in Poland? How can you avoid double taxation? What documents are needed? We answer the most frequently asked questions.
What will you find in the article?
Do you have to declare income from renting an apartment in Spain in Poland?
If you are a Polish tax resident, meaning you permanently live in Poland or your center of life is in this country, you are required to settle all your income, including that earned abroad, in Poland. This means that income from renting an apartment in Spain must be declared to the Polish tax office. Renting an apartment in Spain and taxes in Poland is a topic that raises many doubts, but the rule is simple: the Polish tax authorities want to know about all your income, regardless of the country in which it was earned.
How to settle tax on foreign rental income in Poland?
Income from renting an apartment in Spain must be declared in the annual tax return in Poland. If it is private rental, since 2023 it is settled exclusively with a lump-sum tax on registered income (PIT-28).
In Spain, you must also settle the rental tax – this obligation applies to property owners even if they are not residents. For European Union citizens, the current rental tax rate is 19%.
Poland and Spain apply the proportional deduction method, which means that the amount due in Poland can be reduced by the tax paid in Spain, but only up to the amount of the Polish tax liability. If the Spanish amount is higher, there is no need to pay anything extra in Poland; if it is lower, the difference must be paid.
How to avoid double taxation when renting an apartment in Spain?
To avoid paying tax twice on the same income, Poland and Spain have signed a double taxation avoidance agreement. For rental income, the so-called exemption with progression method applies. This means that income from renting an apartment in Spain is taxed in Spain, and you do not pay tax on it again in Poland, but you must declare it in your tax return. However, this income affects the tax rate you pay on your other income earned in Poland.
Example: If you have income from work in Poland and additionally rent out an apartment in Spain, the Spanish income increases your tax threshold in Poland, but is not taxed a second time.
What documents are needed for settlement in Poland?
To correctly settle income from renting an apartment in Spain in Poland, prepare the following documents:
- proof of rental income (rental agreements, invoices, bank statements),
- documents confirming payment of tax in Spain (e.g., tax decisions, confirmations of transfers to the Spanish tax office),
- documents translated into Polish if they are in Spanish,
- annual tax return from Spain (if required).
A few final words
Renting an apartment in Spain and taxes in Poland is a topic that requires knowledge of the regulations of both countries. The key is to declare the income in Poland, correctly settle the tax in Spain, and use the double taxation avoidance agreement. It is worth ensuring you have a complete set of documents and – in case of doubt – consult a tax advisor to avoid unpleasant surprises.
