Taxation of foreigners in Poland depends primarily on whether the person becomes a Polish tax resident. According to Polish regulations and international principles, a person becomes a resident if at least one of two conditions is met:
- the person stays in Poland for more than 183 days in a year, or
- the person has their centre of vital or economic interests in Poland (e.g. housing, a partner, employment, or business activity).
After obtaining tax residency status, a foreigner is required to declare and pay tax in Poland on their entire income – both income earned in Poland and abroad (the principle of unlimited tax liability). Foreign income is declared in accordance with the relevant double taxation agreement (DTA), which defines the rules for avoiding double taxation and the method of settlement.
If the foreigner is not a tax resident, they are only subject to limited tax liability – meaning they only declare income earned within the territory of Poland.
Income earned in Poland is taxed according to the Polish progressive tax scale, which includes:
• 12% income tax up to a defined threshold (current tax threshold),
• 32% income tax on income above that limit,
• a tax-free amount for tax residents.
A foreigner who works or runs a business in Poland must also fulfil formal obligations: registration with the tax office, obtaining a NIP (Tax Identification Number) or PESEL (a national identification number used in Poland for residents), selecting the tax settlement form, and, if necessary, registering a business.
To avoid mistakes in tax settlements and to correctly determine tax residency, it is advisable to seek support from getsix® tax advisors, who assist foreigners with formalities, settlements, and analysis of tax obligations: https://getsix.eu/contact/.
