Short word rental, especially through platforms specified as Airbnb or Booking.com, has gained large popularity in Poland in fresh years. It has become an attractive way to make additional income, especially in popular tourist cities. However, the expanding number of specified offers and the force on the real property marketplace have drawn the attention of legislators who are planning to introduce fresh regulations and taxation burdens in this area.
What Changes Are Planned?
The Ministry of Finance is working on a task that aims to introduce a fresh short-term rental tax. These changes are intended to cover those who gain from renting apartments or houses for a short period of time, mainly via online platforms. The fresh rules would aim to regulate the rental marketplace and guarantee that those profiting from this activity pay appropriate taxes.
Among the changes under consideration are:
- Introduction of a uniform taxation rate – the existing preferential rules for private rental taxation can be replaced by a fixed rate of tax, regardless of the number of rented properties.
- Obligation to notify activities – persons who rent apartments in the short word may be required to registry business activities, which would entail additional accounting and taxation obligations.
- Increased control – more intensive taxation checks are announced to verify the correctness of taxation settlements among short-term tenants.
When will the fresh Recipes enter into force?
Although the details of the fresh short-term rental taxation are inactive under debate for the time being, the possible dates of entry into force of the fresh rules are the beginning of 2025. This would give both tenants and taxation offices time to prepare for fresh requirements. However, depending on the pace of legislative work, an earlier deadline, e.g. from mid-2024, cannot be excluded.
What does that mean for the tenants?
If the fresh rules come into force, those renting apartments will gotta adapt their activities to the fresh requirements for a short period of time. This may include not only the request to registry business, but besides the work to keep full accounts, pay ZUS contributions or pay higher taxes. For many property owners this could mean reducing the profitability of this form of activity.
Changes may besides affect the long-term rental market, as any owners may opt to opt out of short-term rental for more unchangeable forms of rental.
Are there alternatives?
Faced with planned changes, tenants may consider different options to keep the profitability of their business. 1 solution is to transform short-term rentals into long-term ones, which could reduce the taxation and administrative burden. Alternatively, owners can focus on cost optimization, e.g. by improving property management or choosing more effective taxation solutions.
Short-term rental taxation is simply a real possible that can enter into force as early as 2024 or 2025. Renters should be prepared for changes that may affect their income and operating rules. It is worth keeping track of information on fresh regulations to prepare for the challenges ahead.
Continued here:
Tax on Short-term Rental: What Waits for Renters in 2024?
