# Is it worth buying a garage to rent out? How to calculate the profit before you buy

A garage to rent out is tempting: it costs a fraction of the price of a flat, the tenant does not live inside, and cities are short of parking. Articles about making money on garages, however, rarely show the full calculation. They leave out the civil-law transaction tax, the notary fee, property tax, the flat-rate tax on rent and the months without a tenant. Property tax on a detached garage can be almost ten times higher than on a garage in a block of flats.

[See the full page](https://maszbox.pl/en/blog/czy-oplaca-sie-kupic-garaz-pod-wynajem)

- Author: [Marsel Zychowski](https://maszbox.pl/en/autor/marsel-zychowski.md)
- Published October 17, 2026

![A row of new garage boxes on a fenced site in a city, with blocks of flats in the background](https://maszbox.pl/images/blog/okladka-czy-oplaca-sie-kupic-garaz-pod-wynajem.webp)

Instead of promising a specific profit, we show how to calculate the return for the garage you are looking at right now. It takes a quarter of an hour, before you pay a deposit.

## How to calculate whether a garage pays off

- **Total purchase cost** = price + civil-law transaction tax (2% of the value when buying from a private person) + notary fee with VAT + court fees and copies of the deed + renovation before renting out.
- **Annual revenue** = monthly rent × the number of months in which you will realistically have a tenant.
- **Annual costs** = flat-rate tax on the rent (8.5%) + property tax + charges to the cooperative, residents' association or manager + insurance + repairs.
- **Net rate of return** = (annual revenue − annual costs) ÷ total purchase cost × 100%.
- **Payback period** = total purchase cost ÷ (annual revenue − annual costs).

## A worked example

The figures in the example are assumed for the calculation and are not market data. Use prices and rents from listings in your area. Assumptions: a garage with a land and mortgage register for PLN 100,000 bought from a private person, 18 m² of usable floor area, rent of PLN 500 a month, a tenant for 11 months a year, charges of PLN 50 a month, maximum property tax rates for 2026. We leave out insurance, repairs and land tax.

| Item | Garage in a residential building | Detached garage |
| --- | --- | --- |
| Price | PLN 100,000 | PLN 100,000 |
| 2% PCC | PLN 2,000 | PLN 2,000 |
| Notary fee (maximum, with VAT) | PLN 1,439.10 | PLN 1,439.10 |
| Entry in the land and mortgage register | PLN 200 | PLN 200 |
| Purchase cost (excluding copies of the deed) | PLN 103,639.10 | PLN 103,639.10 |
| Rent for 11 months | PLN 5,500 | PLN 5,500 |
| Flat-rate tax 8.5% | −PLN 467.50 | −PLN 467.50 |
| Charges (12 × PLN 50) | −PLN 600 | −PLN 600 |
| Property tax (18 m²) | −PLN 22.50 | −PLN 216 |
| Left per year | PLN 4,410 | PLN 4,216.50 |
| Net rate of return | approx. 4.3% | approx. 4.1% |
| Payback period | approx. 23.5 years | approx. 24.6 years |

![Chart: a garage to rent out - 6% a year on paper and about 4% after costs in the worked example](https://maszbox.pl/images/blog/garaz-pod-wynajem-zysk-na-papierze-i-po-kosztach-wykres.webp)

The same garage gives 6% a year “on paper”: PLN 500 × 12 months ÷ PLN 100,000. After the purchase costs, taxes, charges and one empty month, about 4% is left. Each further month without a tenant lowers the result by another PLN 500 of revenue. That is why, before buying, you should do the maths with your own figures, including a variant with a longer empty period.

## What decides whether a garage pays off

- **Demand in the area:** dense housing, few parking spaces outside the blocks of flats, a paid parking zone. Check how many listings of [garages for rent](https://maszbox.pl/en/garaze/na-wynajem.md) there are in the district and how long they stay up.
- **Type of garage and tax:** in 2026, a garage in a residential building has a maximum rate of PLN 1.25 per m², and a detached one PLN 12.00 per m². Details in the guide [garage tax](https://maszbox.pl/en/blog/podatek-od-garazu.md).
- **Form of ownership:** a garage with a land and mortgage register is easier to sell later. A garage on municipal land without a register or a metal garage on leased land carries the risk that the lease will not be extended.
- **Dimensions and equipment:** the width and height of the door (SUV, van), electricity, lighting, 24-hour access.
- **Rules:** the rules of the residents' association, cooperative or hall may restrict, for example, storing things or entry by LPG cars. This narrows the pool of tenants.

![In the evening every parking space on the estate is taken, and cars stand along the road](https://maszbox.pl/images/blog/osiedle-zajete-miejsca-parkingowe-wieczorem.webp)

## Costs that are easy to forget

- copies of the notarial deed and any loan costs,
- land tax for a garage on your own plot,
- electricity, if it is included in the rent,
- garage insurance,
- repairs to the roof, door and locks, replacing the cylinder when the tenant changes,
- time for viewings, agreements and settlements.

## Risks of investing in a garage

- **Empty periods:** a garage without a tenant still costs tax and charges.
- **A tenant who does not pay:** if the rent is overdue for at least two full payment periods, you can terminate the rental without notice (Article 672 of the Polish Civil Code), but if the tenant does not hand over the garage voluntarily, court proceedings are the only way left.
- **Tax changes:** the maximum property tax rates rise every year. The dispute over the higher rate for detached garages has gone to the Constitutional Tribunal, so the rules may change either way.
- **Liquidity:** you will sell a garage faster or slower depending on the location. A sale within 5 years from the end of the year of purchase means 19% tax on the income.
- **Legal status:** before you pay a deposit, check the land and mortgage register: the owner, mortgages and claims.

## A garage or a parking space to rent out?

|  | Garage | Parking space in a hall |
| --- | --- | --- |
| Lockable | yes | no, shared entrance gate |
| Storing belongings | usually yes, within the law and the agreement | often prohibited by the hall rules |
| Who is looking | drivers, motorcyclists, people looking for storage | mainly drivers |
| Property tax | depends on whether the garage is in a residential building | in a hall under a residential building, the residential rate |
| Sale | a separate land and mortgage register or another form of ownership | often a share in the co-ownership of the hall |

![A garage hall under a block of flats: open parking spaces next to a lockable garage box](https://maszbox.pl/images/blog/hala-garazowa-miejsca-postojowe-i-boks.webp)

Listings of parking bays are in the [parking spaces](https://maszbox.pl/en/miejsca-postojowe.md) category.

## Private rental or through a business

A private person settles the rent with the flat-rate tax: 8.5% of revenue up to PLN 100,000 a year and 12.5% on the excess, without deducting costs. More in the guide [how to earn from spare space](https://maszbox.pl/en/blog/zarabiaj-na-wolnej-przestrzeni.md). A garage bought for a business as a rule pays the highest property tax rate (in 2026 at most PLN 35.53 per m²), and the rent may be subject to VAT. Before you decide in whose name to buy the garage, compare both options with an accountant.

## Buying a garage to rent out? Next steps

1. Browse [garages for sale](https://maszbox.pl/en/garaze/na-sprzedaz.md) in your area and compare them with the rents in listings of [garages for rent](https://maszbox.pl/en/garaze/na-wynajem.md).
2. Do the maths using the formula from this post, including a variant with a longer empty period.
3. Check the land and mortgage register and the rules before you pay a deposit.
4. After buying, prepare the garage following the guide [how to get a garage ready to rent out](https://maszbox.pl/en/blog/jak-przygotowac-garaz-do-wynajmu.md) and draw up a [garage rental agreement](https://maszbox.pl/en/blog/umowa-najmu-garazu.md).
5. [Add a listing](https://maszbox.pl/en/jak-dodac-ogloszenie.md) on Maszbox.pl. Maszbox.pl charges no commission.

*This post is for information only and is not investment advice. Maszbox.pl connects buyers, sellers and tenants but is not a party to the agreements.*

## Marsel Zychowski

MaszBox Team

We share practical know-how on renting and selling space - garages, warehouses, storage units, parking spots and more.

## Questions about a garage as an investment

### How much can you earn from renting out a garage?

It depends on the purchase price, the rent in the area and the costs. In our example with rent of PLN 500 and a price of PLN 100,000, about 4% a year is left, not 6% as simple division suggests. Do the maths with your own figures.

### Is it better to buy a garage in a block of flats or a detached one?

A garage in a residential building has lower property tax, but the residents' association's rules may restrict how it can be used. A detached garage gives more freedom, but higher tax and often land that is taxed as well.

### Does income from renting out a garage have to be declared?

Yes, you settle the rent revenue with the flat-rate tax on private rental, unless you rent it out as part of a business.