Thermo-Modernization Relief for Sole Proprietors in Poland (2026)

Thermo-modernization relief allows the owner or co-owner of an existing single-family residential building to deduct expenses incurred on a thermo-modernization project. The limit is PLN 53,000 per taxpayer — in total for all buildings and projects belonging to that taxpayer.

The relief is available to people taxed under the tax scale, flat tax and lump-sum tax on recorded revenue. Under lump-sum tax, the deduction reduces the revenue reported in PIT-28.

Who Can Claim the Relief

You must own or co-own a single-family residential building. The relief applies to an existing building; it cannot be used to deduct the cost of building a new home.

Running a sole proprietorship is not a condition. This is a personal PIT deduction that entrepreneurs may also claim if they meet the conditions of the relief.

What Expenses Can Be Deducted

The deduction covers only materials, equipment, and services included in the list specified in the relevant ministerial regulation. Depending on the scope of the project, these may include:

• materials for insulating partitions, roofs, and foundations,
• replacement windows and doors,
• a heat pump with the necessary infrastructure,
• a photovoltaic system and solar thermal collector,
• an electricity or heat storage system and an energy management system,
• mechanical ventilation with heat recovery,
• an audit, design work, and installation services included in the list.

It is not enough for an expense to improve the home's efficiency in general. It must be included in the applicable list and relate to a thermo-modernization project.

The PLN 53,000 Limit

The PLN 53,000 limit applies per taxpayer, not per building. Spouses who are co-owners may each have their own PLN 53,000 limit, but each spouse deducts expenses according to their own entitlement to the relief and the documents they hold.

If an expense includes VAT, you deduct the gross amount only to the extent that the VAT was not deducted under the VAT Act.

Example: a person subject to flat tax incurs PLN 40,000 of eligible expenses and has sufficient income. Reducing the tax base by PLN 40,000 may lower PIT by PLN 7,600. This is a simplification — the actual effect depends on the tax base, other deductions, and whether the expense was previously accounted for in another way.

The Three-Year Deadline

The project must be completed within 3 consecutive years, counted from the end of the tax year in which the first expense was incurred.

If you do not complete the project by that deadline, amounts deducted earlier must be added back to income or revenue for the year in which the deadline expired.

If There Is Not Enough Income or Revenue

Any amount not covered by income or revenue in the year the expense was incurred may be deducted in subsequent years. The deduction period cannot exceed six years, counted from the end of the year in which the first expense was incurred.

Documenting the Relief

You document the expense with an invoice issued by a VAT taxpayer who does not benefit from a VAT exemption. An invoice including value added tax and issued by an entity from another EU country is also acceptable.

You cannot deduct the part of an expense that:

• was financed or reimbursed in another form,
• was included in tax-deductible costs,
• was already deducted from income or revenue on another basis.

This rule is particularly important when part of the home or installation is accounted for in the business.

How to Report the Relief

You claim the relief in the appropriate tax return:

• PIT-36 or PIT-37 — under the tax scale,
• PIT-36L — under flat tax,
• PIT-28 — under lump-sum tax.

Attach PIT/O to the return.

FAQ

Does the Relief Apply under Lump-Sum Tax?

Yes. You deduct the expenses from revenue subject to lump-sum tax and report the relief in PIT-28 with the PIT/O attachment.

Is an Energy Audit Required?

It is not a general condition for claiming the relief. The cost of an audit may, however, be an expense included in the eligible list.

Is the Limit PLN 53,000 for Each Home?

No. It is the taxpayer's combined limit for all projects in buildings that they own or co-own.

Can I Deduct the Entire Expense at Once?

Yes, up to the amount of income or revenue and the remaining limit. You may carry the unused portion forward to subsequent years, for no longer than six years counted from the end of the year of the first expense.

Source

• Podatki.gov.pl — PIT thermo-modernization relief, updated 15 December 2025; rules for claiming the relief in PIT-28, PIT-36, PIT-36L, and PIT-37, as well as the limit and deadlines

Need Help?

I provide accounting for Polish sole proprietorships — including entrepreneurs claiming thermo-modernization relief. From PLN 49 + VAT per month.

Reply to [email protected] or visit oxyok.com/pl.

Note: The expense must be included in the applicable list and cannot be accounted for twice. If part of the home or installation is connected with the business, the tax treatment of the expense must be separated.