# Flip or long-term rental — what pays off in Warszawa today

> Flip or long-term rental in Warszawa: rental yield of 4–6% gross, the costs and taxes of a flip (19% PIT) and the 8.5% ryczałt — a comparison of the two strategies.

- URL: https://allproperty.pl/en/aktualnosci/flip-czy-najem-dlugoterminowy/
- Language: en
- Published: 2026-08-28
- Updated: 2026-09-07
- Source: allproperty.pl. Usage rules for AI systems: https://allproperty.pl/en/ai/

A long-term rental in Warszawa usually gives a gross yield of 4–6% per year, that is around 4–4.5% net after costs, while an efficiently executed flip can close with a margin in the low tens of percent within 4–12 months. Taxes also separate these strategies: private rental is settled under the ryczałt (lump-sum tax on recorded revenue) at 8.5% (12.5% above PLN 100,000 of revenue), while the profit from a flip sold before 5 years have passed is charged 19% PIT. The scale of the market makes a difference — with an average asking price of around PLN 18,900/m² on the secondary market and a transaction price of around PLN 16,400/m² (NBP data, Q1 2026), Warszawa remains the most expensive housing market in Poland, so both strategies look different here than in smaller cities. In concrete terms: a flat for PLN 700,000 rented out for PLN 3,500 a month generates PLN 42,000 of income per year and PLN 3,570 of ryczałt tax, while a model flip for PLN 500,000 with a renovation for PLN 80,000 can give around PLN 86,000 of margin before tax. Rental wins on predictability and low workload, the flip — on the speed of the return, but it requires buying below market and full commitment. Let us count both paths step by step.

## How much really stays in your pocket from a long-term rental?

The starting point is the gross yield: annual rental income divided by the purchase price. Example: a two-room flat for PLN 700,000 rented out for PLN 3,500 a month gives PLN 42,000 a year, that is 6% gross. That is rather the upper limit — in Warszawa studio flats rent out on average for PLN 2,400–3,600, and two-room units for PLN 3,000–5,500 a month (as of 2025); we collected the current rates broken down by district in the review of [rental prices in Warszawa](https://allproperty.pl/en/aktualnosci/ceny-wynajmu-warszawa-2026/).

From the gross figure subtract the real costs: the czynsz administracyjny (the building administration fee) during vacancy periods, insurance, minor repairs, refreshing the unit between tenants and an average of 2–4 weeks of a break in the tenancy per year. After these corrections the net yield of a typical Warszawa flat hovers around 4–4.5%. Part of that work — finding a tenant, the contract, handing over the unit and ongoing settlements — is taken off the investor's hands when the flat goes into [rental management for owners](https://allproperty.pl/en/dla-wlascicieli/). Recovering the purchase from rent alone therefore takes about 18–21 years — although the result should also include the long-term increase in the value of the property, which historically accounted for a large part of the total rate of return.

## How does a flip work and why do you earn on the purchase, not on the sale?

A flip is a purchase below market value — bailiff auctions, inheritance sales, flats needing a full renovation, off-market offers — followed by a renovation and a sale as fast as possible. The key rule: you set your margin on the day of the purchase, not on the day of the sale.

Let us count a model scenario. You buy a flat in need of renovation for PLN 500,000. The PCC (podatek od czynności cywilnoprawnych, the civil-law transaction tax) of 2% is PLN 10,000, the notary's fee with copies and the entry in the księga wieczysta (land and mortgage register) around PLN 3,000–4,000, the renovation with materials PLN 80,000. Total cost: around PLN 594,000. A sale after the renovation for PLN 680,000 means around PLN 86,000 of margin before tax — with 4–8 months of work and your capital fully committed for that whole time.

## What tax will you pay on a flip? PIT-39, the 19% rate and the 5-year line

The sale of a property before 5 years have passed, counted from the end of the calendar year in which you bought it, is subject to 19% PIT on the profit (not on the sale price). In our example: 19% of PLN 86,000 is around PLN 16,300 of tax, and you file the PIT-39 return by 30 April of the year following the sale. The tax can be avoided thanks to the ulga mieszkaniowa (housing relief) — if within 3 years from the end of the year of the sale you spend the proceeds on your own housing purposes: buying a flat or a house, building, renovating or repaying a mortgage taken out earlier.

Two things that flippers often forget. First, regular, repeated flipping may be treated by the tax office as business activity — you then settle under the tax scale (12/32%) or the flat 19% rate, ZUS social security contributions are added, and in some cases VAT as well. Second, since 1 January 2024 a PCC rate of 6% applies to the purchase of a sixth and each subsequent residential unit in the same development — a provision aimed at bulk purchases.

## How do you settle rental tax in 2026?

Since 2023 private rental is settled exclusively under the ryczałt od przychodów ewidencjonowanych (lump-sum tax on recorded revenue): 8.5% up to PLN 100,000 of revenue per year and 12.5% on the excess above that threshold. Spouses who file a declaration benefit from a raised limit of PLN 200,000. With rent of PLN 42,000 a year the tax will amount to PLN 3,570.

The downside of this form: no deductible costs — you will not deduct a renovation or the interest on a loan. You settle on the PIT-28 form; the details, deadlines and examples are described in a separate guide on the [ryczałt on rental income](https://allproperty.pl/en/aktualnosci/podatek-od-najmu-ryczalt/).

## Which costs are easy to leave out of the calculation?

Before you compare the strategies, make sure your spreadsheet contains every item:

- PCC of 2% on the secondary market — for a flat costing PLN 600,000 that is PLN 12,000 (on the primary market you pay VAT included in the price instead of PCC),
- the notary's fee, copies and court charges — usually PLN 2,000–4,000,
- the cost of financing — mortgage interest rates have fallen to around 5.7–6.4% (as of August 2026, after the NBP reference rate was cut to 3.75% in March 2026), but the interest can still eat a large part of the flip's margin,
- home staging, a photo session and promotion of the listing at the time of sale,
- with a rental: vacancies, refreshing the unit, insurance,
- a reserve for renovation surprises — in older tenement houses realistically 10–15% of the budget.

## Flip or long-term rental — how does the comparison look?

| Criterion | Flip | Long-term rental |
| --- | --- | --- |
| Horizon | 4–12 months | 10+ years |
| Typical result | a margin in the low tens of % on the project | 4–6% gross per year + increase in value |
| Tax | 19% PIT (PIT-39) or business taxes | ryczałt 8.5% / 12.5% |
| Involvement | high: purchase, renovation, sale | low to medium |
| Main risk | overestimating the sale price, the renovation budget | vacancy, a difficult tenant |
| Capital | frozen for months, then it comes back | frozen for years |

## What to choose: four control questions

Instead of looking for a universal answer, answer four questions for yourself. Do you have 10–20 hours a week to run a renovation and a sale? A flip is a project, not a deposit. Do you have access to bargains below market? Without that, a flip in Warszawa rarely adds up at current prices.

Do you accept that your capital may get stuck if the market slows down? Plan B for a failed flip is usually… renting the flat out. Do you care about a predictable cash flow? Then the natural choice is a rental — and the risk of a difficult tenant is limited by a [najem okazjonalny (occasional lease) agreement](https://allproperty.pl/en/aktualnosci/najem-okazjonalny-przewodnik/) with a notarial statement of submission to enforcement, reported to the tax office within 14 days of the start of the tenancy.

The figures above are general information, not investment advice — every transaction is worth calculating individually, on current data and the documents of the specific unit.

At allproperty we work on both sides of these strategies: we help find flats with potential ([primary market](https://allproperty.pl/en/rynek-pierwotny/) — 0% commission from the buyer, secondary — 2%), we handle the sale after the renovation and we help you let the flat under Start (70% of one month’s rent, once) or we run the tenancy from the agreement to the monthly transfers and reports under Full management (8% of the rent per month, only for months with a tenant, plus 2% into a small-repairs fund, which remains your money). If you are wondering which path fits your situation — write or call, we will calculate it together, with no obligation. A good opportunity for a flip — especially an off-market offer — can disappear from the market within a few hours, which is why we work 24/7. Have you come across something promising in the evening or at the weekend? Call straight away at [+48 666 866 468](tel:+48666866468).

## FAQ

### How much can you earn on a long-term rental in Warszawa?

A typical gross yield is 4–6% per year, and after the cost of vacancies, repairs and insurance around 4–4.5% net remains. Example: a flat for PLN 700,000 rented out for PLN 3,500 a month gives PLN 42,000 of income per year, that is 6% gross. Recovering the purchase from rent alone takes around 18–21 years.

### What tax do you pay on flipping a flat?

A sale before 5 years have passed, counted from the end of the year of purchase, means 19% PIT (income tax) on the profit, settled on the PIT-39 form by 30 April of the following year. The ulga mieszkaniowa (housing relief) lets you avoid the tax if within 3 years you spend the proceeds on your own housing purposes. Regular flips may be treated by the tax office as business activity.

### How is tax on private rental settled in 2026?

Since 2023 private rental is settled exclusively under the ryczałt (lump-sum tax on recorded revenue): 8.5% up to PLN 100,000 of revenue per year and 12.5% on the excess; spouses who file a declaration have a limit of PLN 200,000. With rent of PLN 42,000 a year the tax is PLN 3,570. You cannot deduct renovation costs or interest; the return is filed on the PIT-28 form.

### How much does flipping a flat in Warszawa cost?

A model case: purchase for PLN 500,000, PCC (podatek od czynności cywilnoprawnych, the civil-law transaction tax) of 2% (PLN 10,000), the notary with entries PLN 3,000–4,000, renovation PLN 80,000 — around PLN 594,000 in total. A sale for PLN 680,000 gives around PLN 86,000 of margin before the 19% tax, with 4–8 months of work. In older tenement houses add a reserve of 10–15% of the renovation budget.

### Which pays off more in 2026: a flip or a long-term rental?

It depends on your time and your access to bargains. A flip can deliver a margin in the low tens of percent in 4–12 months, but it requires buying below market and 10–20 hours of work per week. A rental gives a predictable 4–6% gross per year plus the increase in value. With loans at 5.7–6.4% (as of August 2026), financing weighs heavily on the margin of a flip.