Rental of real property by individuals: tax consequences

Rental of real property by individuals, including land, residential flats, offices, commercial and service premises, is one of the most frequently audited areas of tax verification proceedings conducted by tax offices. The authorities are particularly interested in: correct classification of income, the choice of the appropriate form of taxation, VAT taxpayer status and, from 2026, the obligation to issue invoices through KSeF. Below we present a comprehensive overview of the subject, addressing separately the consequences under income tax (flat-rate) and VAT.