Passive Income Calculator — rental, dividends, interest

Passive income is money earned with minimal active effort — the capital "works" for you. Common types include rental property income, dividends from stocks and ETFs, interest from savings accounts and bonds, royalties, and revenue from intellectual property licences. This calculator covers the three most popular streams for Polish investors: rental, dividends, and interest.

Since 2023, the only tax form available for private rental income in Poland is the flat-rate tax (ryczalt). The rate is 8.5% on rental revenue up to PLN 100,000 per year, and 12.5% on any amount above that. The tax is calculated on gross revenue — maintenance costs are not deductible under the flat-rate scheme.

The "Belka tax" is the informal name for Poland's 19% capital gains tax (Article 30a of the Personal Income Tax Act). It applies to interest from bank deposits, bonds, and dividends from stocks and investment funds. The tax is withheld automatically by the bank or broker and does not need to be declared in the annual PIT return for Polish-source income.

On the Warsaw Stock Exchange (GPW), blue-chip dividend companies in WIG20 and mWIG40 typically yield 3–6% per year. International dividend ETFs (e.g. FTSE All World High Dividend) yield around 3–4%. High-yield strategies can reach 6–10% but carry higher risk. A commonly recommended safe sustainable yield is 3.5–4.5% per year.

The 4% rule (from the FIRE movement) states you need 25 times your annual spending. At a 4% annual withdrawal, the portfolio historically lasts 30+ years. Example: spending PLN 5,000/month = PLN 60,000/year → you need PLN 1,500,000 in capital. The calculator shows how much any given capital generates per month after taxes.

No — when taxed under the flat-rate scheme (ryczalt), rental income is assessed separately and does not affect your progressive PIT base. It does not push you into the 32% bracket or reduce your personal tax-free allowance. This is a key advantage versus the old general-rules method where rental income was added to other income.

Rental property provides a steady cash flow and potential capital appreciation, but requires active management, carries vacancy risk, and is illiquid. Dividends are more liquid, easy to diversify, and require no day-to-day management, but are subject to market volatility. Many investors combine both: property as a stable base and dividend stocks as a growth engine.

The calculator shows nominal after-tax amounts without inflation adjustment. For long-term planning, subtract the expected inflation rate from the nominal return to get the real yield. Example: savings rate 5%, inflation 3% → real return 2% per year. Use the separate inflation calculator or compound interest calculator to model the real purchasing power over time.

There is no formal minimum — you can start with a few hundred zloty through dividend ETFs listed on the GPW or via an international broker. However, with a small capital, commissions and spreads can erode gains. In practice, having at least PLN 5,000–10,000 ensures commissions stay below 1% per transaction. Dollar-cost averaging (DCA) is an effective strategy for gradual capital building.

Annual rental income = total rent received during the calendar year (cash basis — the date of receipt, not the due date, determines the tax period). Apply the flat rate: 8.5% on the first PLN 100,000 and 12.5% on the excess. Monthly or quarterly advance payments are due by the 20th of the following month or quarter.