Car leasing remains one of the most popular ways for a JDG (sole proprietorship) in Poland to acquire a vehicle, thanks to its flexibility and tax benefits. In 2026, the most important change is a new set of cost limits based on CO2 emissions. Here’s how it works in practice.
- As of January 1, 2026, the cost limit for passenger cars under operating leases depends on CO2 emissions: PLN 100,000 (cars emitting 50 g/km or more), PLN 150,000 (below 50 g/km), or PLN 225,000 (electric and hydrogen vehicles).
- The new limits apply to every payment made from January 1, 2026, regardless of when the operating lease, rental, or hire agreement was signed.
- Leasing only provides a real income tax saving under the tax scale or flat tax (podatek liniowy), under the lump-sum tax (ryczałt), costs don’t reduce the tax base.
- VAT can be deducted at 50% (mixed use, no formalities) or 100% (exclusively business use, requiring VAT-26 and a mileage log).
- Selling a car bought out to the company and then withdrawn to private assets is subject to income tax if it happens before 6 years have passed since acquisition.
- By gifting the car to an immediate family member (zero tax group), the recipient can sell it tax-free after just 6 months.
- What is leasing and why is it worthwhile for a JDG
- Which tax form gives the greatest benefit
- New 2026 cost limits, PLN 100/150/225k
- How to deduct VAT, 50% or 100%
- Step-by-step leasing process
- How to buy out a car from leasing without falling into tax traps
- How to sell a car after leasing without paying tax
- FAQ
What is leasing and why is it worthwhile for a JDG
Operating lease is a contract under which a leasing company buys a vehicle and makes it available to you in exchange for monthly payments. At the end of the contract you can buy the car out, return it, or negotiate a new agreement for another vehicle. Main reasons entrepreneurs choose leasing:
- You don’t freeze cash. Instead of a one-time large expense, you pay a small down payment (often 0-45%) and spread the rest over monthly installments.
- The decision is faster than at a bank. Under a simplified procedure, a leasing decision can be obtained within 24 hours, often just requiring an income statement.
- Costs are predictable. You know the monthly payment amount in advance, which makes budgeting easier.
Which tax form gives the greatest benefit
The choice of tax form directly affects how much you actually save through leasing. Under the tax scale and flat tax, leasing allows for a real tax reduction: every leasing-related cost is included as a tax-deductible expense, reducing the tax base.
| Type of cost | How it reduces tax |
| Down payment | Fully a tax-deductible expense at the moment it’s incurred |
| Lease installments (principal part) | Deductible within the PLN 100/150/225k limit, proportional to the car’s value; the interest part of the installment is fully deductible |
| Fuel, service, insurance | Also company expenses (with some restrictions for casco/GAP insurance above PLN 150,000) |
Under the lump-sum tax (ryczałt) system, you pay tax on revenue, so costs don’t affect the tax amount: lease installments, the down payment, and operating costs don’t reduce the tax base. If the planned monthly payment exceeds PLN 2,000-3,000 and the business margin is low, it’s worth calculating whether it pays to temporarily switch from ryczałt to general rules for the duration of the lease agreement.
New 2026 cost limits, PLN 100/150/225k
The most important change in 2026: instead of a single PLN 150,000 limit for all passenger cars, three thresholds now apply depending on the vehicle’s CO2 emission level, under Article 23(1)(47a) and Article 23(5e) of the PIT Act (with equivalent provisions in the CIT Act).
| Car category | Cost limit from January 1, 2026 |
| Cars with CO2 emissions of 50 g/km or more (most combustion-engine cars) | PLN 100,000 |
| Low-emission cars, hybrids (CO2 emissions below 50 g/km) | PLN 150,000 |
| Electric and hydrogen cars | PLN 225,000 |
The new limits apply to every payment made from January 1, 2026, regardless of when the operating lease, rental, or hire agreement was signed.
The only exception is the interest part of the installment, which remains fully deductible without any limit.
The limit applies proportionally: only the portion of the principal part of the payment (the down payment and lease installments) corresponding to the ratio of the limit to the car’s value under the lease agreement can be included as a cost.
How to deduct VAT, 50% or 100%
VAT is added to every lease installment. As an active VAT payer, you have the right to deduct it, but the deduction amount depends on how you use the vehicle:
- Mixed use (business and private) → 50% VAT. This is the most common and simplest scenario, requiring no additional formalities.
- Exclusively business use → 100% VAT. You must simultaneously file a VAT-26 declaration, keep a detailed mileage log, and have an internal vehicle-use policy.
Vans and pickups with a single row of seats holding a VAT-1 or VAT-2 certificate qualify for a 100% VAT deduction without needing to keep a mileage log or file a VAT-26.
Step-by-step leasing process
- You choose an offer and submit an application. Compare terms from several leasing companies.
- The lessor verifies the application in the BIK and KRD databases. With a good credit history, the decision is usually a formality and takes up to 24 hours.
- You sign the contract and the General Lease Terms. Read the table of additional fees carefully.
- You pay the down payment and receive the car. The lessor pays the supplier, registers the car in its own name, and hands you the keys.
How to buy out a car from leasing without falling into tax traps
After the contract ends, you have two main paths.
Path 1: buyout to the company. You deduct VAT from the buyout invoice; if the buyout value (after VAT deduction) exceeds PLN 10,000, the car is entered into the fixed asset register and depreciated. If the buyout value after VAT does not exceed PLN 10,000, it can be booked as a one-off cost. For expensive cars, the PLN 100/150/225k limit applies to the buyout value separately from the limit on lease installments.
Path 2: “private” buyout. The buyout invoice is still issued to the company, but you don’t record it in the company’s books, you don’t deduct VAT or book it as a cost, and the car immediately becomes your private property.
If you sell or withdraw the car within 5 years of purchase (for cars worth over PLN 15,000),
you can recover part of the previously undeducted VAT through a multi-year adjustment.
How to sell a car after leasing without paying tax
The 6-year rule. Regardless of whether you bought the car out to the company and then withdrew it to private assets, or made a “private” buyout right away, selling the vehicle before 6 years have passed since its purchase or withdrawal is treated as income from business activity and is subject to tax.
Gifting, a way to legally speed up the sale. If you want to sell the car sooner: buy it out and transfer it to private assets, draw up a gift agreement, and give the car to an immediate family member in the so-called “zero” tax group (for example a child or parent), reporting the gift on form SD-Z2. The recipient can sell the car tax-free after just 6 months, counted in full months from the first month after receiving the gift.
Planning to lease an expensive car, or is your tax situation unusual? Our team helps entrepreneurs in Poland with accounting support and tax optimization.
FAQ
Do I have to pay lease installments from a business account?
Yes, this is best practice. It keeps your finances transparent and confirms that the expense is related to the business.
Can I get a lease without a down payment?
Yes, it’s possible, but usually only for companies with a stable market position and a good credit history. New sole proprietors most often pay a down payment of a few to several percent of the car’s value.
Do the new PLN 100/150/225k limits apply to contracts signed before 2026?
Yes, for operating leases, rentals, and hires, the new limits apply to every payment from January 1, 2026, regardless of when the contract was signed.
What is lease assignment?
It’s the transfer of rights and obligations under a lease agreement to another company. A good solution if you want to give up the car before the contract ends. Assignment requires the lessor’s consent and usually involves an administrative fee.
See also: Tax Systems for Sole Traders (JDG) in Poland, 2026 Guide, Freelancer Accounting in Poland, What You Need to Know, Free Company Registration in Poland, How the S24 Portal Really Works.
Sources and legal basis
- Act of 26 July 1991 on Personal Income Tax, Article 23(1)(4), 23(1)(47a), and 23(5e).
- Act of 11 March 2004 on Value Added Tax (VAT), provisions on vehicle VAT deduction.
- PIT.pl, changed limits for leased passenger cars from 2026.
- Infor.pl, PLN 100/150/225k CO2-based leasing limits for 2026.
Legal status as of: August 1, 2026.
Author: Valerii Kushnirskyi, in-house legal practitioner at MojaFirma.
This article does not constitute tax advice. Cost limits, VAT rates, and deadlines can change, so before making a leasing decision we recommend consulting an accountant or booking a free consultation with our team.
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