Poland Considers Higher Taxes for Short-Term Rentals

Poland is moving to regulate the booming short-term rental market, with a government bill proposing a Central Register of Tourist Accommodation (CWTON). This move, partly spurred by EU regulations, aims to bring order to how properties are rented out for short stays.

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short-term paid rental of residential premises (for a day or a few days), not related to satisfying the housing needs of the tenant and their family, is in essence similar to the provision of hotel services.

While the bill itself doesn't directly change tax laws, it paves the way for municipalities to apply stricter property tax rates. Under existing interpretations, short-term rentals can be classified as commercial activities, akin to running a hotel. This means property owners could face significantly higher taxes.

The Supreme Administrative Court has previously ruled that short-term rentals, especially those not fulfilling basic housing needs and resembling hotel services, should be subject to business property tax rates. These rates can be over twenty times higher than those for residential properties. Currently, the maximum rate for residential properties is 1.25 Polish zloty per square meter, while for business properties it can reach 35.53 Polish zloty.

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municipalities have been treating properties rented out short-term as occupied for business purposes and collecting property taxes at rates appropriate for business.

Tax advisors note that municipalities have long treated short-term rentals as commercial ventures. The creation of the CWTON will, however, make it easier for local authorities to identify these properties and enforce existing tax regulations, effectively simplifying the process of taxing these rentals as businesses.

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the creation of CWTON will make it easier for them to find such premises. In essence, an excerpt from such a register will be ready evidence.