Yes — a foreigner who becomes a Polish tax resident is obliged to declare and settle in Poland all of their income, regardless of the country in which it was earned. This results from the principle of unlimited tax liability, which applies to foreign salaries, rental income, business income from activities conducted abroad, and capital gains such as dividends, interest, or investment income.
The obligation to report foreign income is based on tax residency. A person who spends more than 183 days per year in Poland, or who has their centre of vital or economic interests in Poland, is considered a Polish tax resident and must include foreign income in their annual tax return. At the same time, the relevant double taxation agreement (DTA) is applied to determine in which country the income is taxable and how it should be reported in Poland.
The method of settling foreign income depends on the provisions of the applicable DTA – it may be the exemption with progression method (where income taxed abroad affects only the tax rate in Poland), or the proportional credit method (where foreign tax paid is credited against Polish tax due). Correct application of the method is essential to avoid mistakes, double taxation, or tax arrears.
Due to the complexity of international tax rules, foreigners living in Poland often need assistance with determining their tax residency, correctly applying the DTA, and preparing their PIT return. getsix® provides full support in reporting foreign income, tax residency analysis, and selecting the appropriate taxation method: https://getsix.eu/contact/.
