Tax on Selling Property in Poland as a UK Resident — Will You Be Taxed Twice?

You're a Pole living in the UK and you're selling a house in Poland. Do you pay tax in Poland or in the UK? Will you end up taxed twice? This article explains how cross-border taxation on property sale proceeds works — specifically for property in Poland owned by a UK resident (or the other way round). It's a complex area, so you should work with a tax adviser — here we give you the overview.

This material is for general information only and is not tax advice. International tax law is complex and depends on the specific rules in Poland and the UK, your residency status, and the relevant tax treaty. Always consult a tax adviser in Poland and in the UK.

The lex situs rule — property is taxed where it is located

The key rule: property is taxed in the country where it is located — regardless of where you live.

In practice: - Property in Poland → taxed in Poland - Property in the UK → taxed in the UK - Your residency status (where you live) is of secondary importance

Poland — 19% PIT on property sale proceeds

If you're selling a Polish property, Polish law applies:

• Tax: PIT (personal income tax) — 19% of the gain
• Exemption: if you owned the property for more than 5 years — no tax is due
• Reporting: PIT-37/PIT-38 return filed with the Polish tax office (urząd skarbowy), by 30 April of the following year
• Important: this applies regardless of whether you're a PL or UK tax resident

⚠️ This applies even if you're a UK resident — Polish law requires you to pay PIT on the gain from selling Polish property.

The UK — does Capital Gains Tax (CGT) apply to selling a Polish house?

For UK residents: is there an ATED-style catch?

If you're a UK resident selling a Polish property, the question is: does UK CGT apply?

The answer: UK CGT generally does not apply to a Polish property, because: - UK CGT mainly covers property located in the UK - Property located outside the UK (including in Poland) is taxed where it is located - The UK does not charge CGT on the sale of a foreign home (there are exceptions for specific UK residential property rules, but those concern property that is in the UK)

But wait — UK residential CGT rules have tightened since 2020

Since April 2020, CGT on UK residential property (e.g. a main residence) has become stricter, with tighter reporting deadlines. But that applies to property located in the UK, not in Poland.

In practice, for a Pole in the UK selling a house in Poland: - UK CGT: generally does not apply (the property is in Poland, not the UK) - Polish PIT: does apply (the property is located in Poland)

If you're a UK resident selling a Polish property, does the UK collect any tax at all?

Generally speaking: no. The UK does not tax the sale of foreign property (with narrow exceptions for specific types of asset).

⚠️ However: if the gain from the sale is substantial, it could affect other aspects of your UK tax position going forward. Speak to a UK adviser.

The UK-Poland double taxation treaty

Does one exist?

Yes — there is a Convention between the United Kingdom and the Republic of Poland for the Avoidance of Double Taxation (in Polish: Umowa między RP a Wielką Brytanią o unikaniu podwójnego opodatkowania).

What does the treaty say?

The treaty provides that: - Immovable property is taxed in the country where it is located (lex situs) — i.e. in Poland - The UK does not normally tax the sale of Polish property - If the UK were to tax it (very unusual), you could apply for relief under the treaty

In practice

If you sell a Polish property while a UK resident: - You pay PIT in Poland (19%, or an exemption if you've owned it for more than 5 years) - The UK does not charge additional tax (under the treaty) - No double taxation ✅

Polish resident selling a house in the UK — the reverse scenario

If you're a Polish resident selling a house in the UK:

• UK taxation: CGT applies to UK residential property (subject to reliefs such as Private Residence Relief if it was your main home)
• Polish taxation: PIT may also be due, depending on your status
• Treaty: the same principle applies — the property is taxed where it is located (the UK)

In practice: you'll want a UK adviser to handle CGT and a Polish adviser to handle PIT and any available reliefs.

Worked example — a Pole in the UK sells a Polish property

Scenario: - You bought a house in Poland in 2020 for PLN 200,000 - You sell it in 2025 for PLN 250,000 - You are a UK resident (you live and work there) - Gain: PLN 50,000 - PIT: PLN 50,000 × 19% = PLN 9,500 (payable in Poland)

In the UK: - CGT does not apply (the property is in Poland, not the UK) - No UK tax is due

Total: you pay PLN 9,500 in Poland. That's it.

(If you had bought the house in Poland in 2020 and sold it in 2026 instead — that's more than 5 years of ownership → PIT exemption in Poland, no tax due.)

Moving back to Poland from the UK — a change of residency

If you're planning to move from the UK to Poland and change your tax residency:

• Tax for the previous year (UK): you'll need to settle this with HMRC
• Tax for the current year (PL): you'll need to register with the Polish tax office
• Selling property during the transition: this can get complicated — using a tax adviser in both countries is essential

Practical steps for a UK resident selling a Polish property

1. Consult a tax adviser in Poland - They will calculate the PIT due - They will confirm whether the 5-year exemption applies - They will prepare the PIT-37 / PIT-38 return

2. Notify HMRC in the UK (if required) - Usually not required, since this isn't UK-source income - But if the gain is substantial, notifying HMRC can help avoid problems later

3. Pay PIT in Poland — by 30 April of the following year

4. Keep the paperwork - Copies of the sale deed and contract - Invoices and receipts for costs incurred - Proof that PIT has been paid

Checklist — tax on selling a Polish property from the UK

• ☐ UK or PL resident? — establish your status (this affects the procedure)
• ☐ Gain on sale — calculate it (sale price − purchase price − costs)
• ☐ 5 years since purchase? — check whether the PIT exemption applies in Poland
• ☐ PIT in Poland — arrange this with a Polish tax adviser (PIT-37/38)
• ☐ CGT in the UK — check with a UK adviser (usually does not apply)
• ☐ PL-UK treaty — your UK adviser can confirm there's no double taxation
• ☐ Deadline: 30 April of the following year for the Polish PIT return

Frequently asked questions

Will I be taxed twice — in Poland and in the UK? Probably not. The PL-UK treaty provides that property is taxed in the country where it is located (Poland). The UK does not usually tax the sale of Polish property. Always confirm this with a UK adviser.

Can I offset the tax paid in Poland against UK tax? It depends on the treaty and your specific circumstances. In most cases the UK gives relief for tax already paid in Poland. A UK adviser can confirm this for your situation.

How long do I have to pay PIT in Poland? Until 30 April of the following year. For example, a sale in 2025 means the return is due by 30 April 2026.

If a UK resident has been living in Poland for years, does that change the tax treatment? Tax treatment depends on tax residency, which is determined by several factors (main home, family, work, and so on). If you change your residency to Poland, your tax obligations change accordingly. Always check with an adviser.

Can I choose to pay tax in the UK instead of Poland? No. Property in Poland means tax in Poland. This follows from the international treaty (the lex situs rule).

This material is for general information only. International taxation is complex. Always work with a tax adviser in Poland (and in the UK, if you're a UK resident) to make sure your filing is correct and your tax position is optimised.