Short-term rental is becoming increasingly popular, especially in tourist locations such as the Tricity area. For apartment owners, it is an attractive form of income, but also a source of additional obligations, including tax duties. So how should short-term apartment rentals be properly taxed? Below you will find a comprehensive guide.
Lump sum tax on recorded revenues - short-term rental
One of the options that owners of properties intended for short-term rental can choose is taxation in the form of a lump sum on recorded revenues. The tax rate is 8.5% for revenues up to PLN 100,000 annually and 12.5% for revenues exceeding this amount. It is a simple and convenient form of taxation that does not require full accounting but it is necessary to keep a record of revenues.
General rules
Until the end of 2022, taxpayers could use general rules of taxation. However, from 2023, private rentals are settled solely under the lump sum on recorded revenues.
VAT – when should it be settled?
How is VAT settled in the case of short-term rentals? Short-term rental is taxed with a preferential VAT rate of 8%.
Choosing the most advantageous form of taxation
The decision on choosing the form of taxation for short-term rental should be thoughtful and tailored to the individual situation of the owner. It is important to consider factors such as the number of rented properties, the amount of income earned, and the costs associated with maintaining the rental.
Business registration
It is worth remembering that short-term rental may require registering a business, especially when conducted on a large scale. Such registration involves additional obligations, such as keeping records, settlements with the Social Insurance Institution (ZUS), and possibly with the tax office.
Finding attractive locations
Short-term rental will be most profitable in tourist-attractive places such as the Tricity area. If you are interested in rental properties, check offers for Tricity apartments, including Gdańsk apartments, Gdynia, and Sopot on our website. The Lion Apartments team guarantees excellent service for you and your guests, as well as comprehensive care at every stage of the stay. Moreover, we regularly check the condition of your apartment. The safety of your apartment is a priority for us. We also provide professional support in organizing renovations and repairs.
Summary
Taxation of short-term rental may seem complicated, but proper preparation and choosing the optimal form of taxation significantly simplify this process. It is also worth consulting a tax advisor to ensure that all actions comply with applicable law and to optimize your tax liabilities.
