Tax residency in Poland: what business owners need to know when moving

Tax residency in Poland does not change solely because a taxpayer moves out of Poland, rents a property abroad or obtains a foreign tax residence certificate. It is necessary to establish whether the individual still has their centre of personal or economic interests in Poland or stays in Poland for more than 183 days during the tax year.

For business owners, the analysis is broader. Losing Polish tax residency as an individual does not automatically mean that all income connected with the business ceases to be taxable in Poland. The individual’s tax residency, sources of income, manner in which the business is conducted and the possible existence of a permanent establishment in Poland or another country must be assessed separately.

Similar risks apply to foreign business owners, shareholders and management board members moving to Poland. Becoming a Polish tax resident may affect the taxation of foreign income, while managing a foreign company from Poland may require a separate assessment of the company’s own tax position.

A change of tax residency is primarily a change in the taxpayer’s actual connections with Poland and another country. There is no single form which, once filed, automatically results in the loss or acquisition of Polish tax residency. Particular care is required for business owners, shareholders, asset owners and management board members, because an individual’s place of residence and the place where their business is taxed will not always be the same. In these cases, tax advisory in Poland should take into account both the taxpayer’s personal position and the consequences of the relocation for their business activities or companies they own.

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How do you change tax residency in Poland?

An effective change of tax residency requires a genuine change in the circumstances determining where the taxpayer lives. A declaration, deregistration of residence, foreign address or registration of a business in another country does not, by itself, determine where the individual is tax resident.

Under Article 3(1a) of the Polish Personal Income Tax (PIT) Act, an individual is regarded as having their place of residence in Poland if they:

1. have their centre of personal or economic interests in Poland, i.e. their centre of vital interests; or
2. stay in Poland for more than 183 days in a tax year.

These are two independent criteria. This means that staying in Poland for no more than 183 days is not sufficient to establish that Polish tax residency has been lost if the taxpayer’s centre of personal or economic interests remains in Poland.

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What actually determines tax residency in Poland?

Area	What should be analysed	What does not determine the issue on its own
Physical presence	Actual number of days spent in Poland	Simply spending most of the year abroad
Personal interests	Where the spouse or partner and minor children live, household and social activity	Registered address, citizenship or the presence of extended family alone
Business and economic interests	Main sources of income, place where the business is conducted, assets, investments, bank accounts and where assets are managed	Merely opening a bank account or registering a business in another country
Other country	Its domestic rules and the applicable double taxation agreement	A foreign tax residence certificate alone, without analysing the overall circumstances

The Polish Ministry of Finance indicates that the assessment of an individual’s centre of personal interests may take into account, among other factors, family and social ties as well as social, cultural, sporting or political activity. In practice, the place where a spouse, partner and minor children live may be particularly relevant.

When assessing the centre of economic interests, factors may include the place where gainful activities are carried out, main sources of income, investments, real estate, movable property, loans and bank accounts.

For a business owner, particular importance attaches to where the business is actually conducted and where assets are managed, rather than solely to the country stated in registration documents.

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Is the 183-day rule enough to change tax residency in Poland?

No. The 183-day threshold is only one of two independent criteria for Polish tax residency. Moreover, the Polish PIT Act refers to staying in Poland for “more than 183 days”, not at least 183 days.

A taxpayer may therefore spend considerably less time in Poland and still remain a Polish tax resident if their centre of personal or economic interests is located here. The assumption that simply spending most of the year outside Poland automatically transfers tax residency is therefore incorrect.

This can be particularly important for a business owner. If, despite moving abroad, their main business activity, assets or significant commercial decisions remain connected with Poland, these factors should be taken into account when determining their centre of economic interests.

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What happens to the business when its owner changes tax residency?

A change in the business owner’s tax residency does not automatically move the business itself or its taxation to another country. The individual’s tax residency and the place where income generated by the business is taxed must be determined separately.

This may be relevant, for example, where a business owner moves out of Poland but retains an office, employees, technical facilities or another place in Poland through which the business is actually conducted. A non-resident may continue to be taxed in Poland on income earned in Polish territory.

In this context, the PIT Act refers, among other things, to business activities carried on in Poland, including through a foreign permanent establishment located in Poland. The final tax treatment must, however, always be considered together with the applicable double taxation agreement.

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Is registering or moving the business abroad enough?

Registering a company or business activity in another country should not be treated as equivalent to changing the owner’s personal tax residency.

In practice, the analysis should include, among other things:

• where the business owner actually conducts the activity;
• where the business infrastructure is located;
• where key employees work;
• where significant business decisions are made;
• where material assets are located;
• whether the business owner continues to maintain a fixed place of business in Poland;
• whether a permanent establishment arises in Poland or the other country under the applicable tax treaty.

It is therefore possible for a business owner to successfully change their personal tax residency while some of their business income may still remain taxable in Poland.

Where business activities are conducted across several countries, the analysis of the individual’s tax residency should be combined with an assessment of the applicable double taxation agreement with Poland and the rules governing the taxation of business activities.

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Can you be a tax resident of two countries at the same time?

Yes. Under their domestic laws, two countries may simultaneously regard the same individual as tax resident. Where this occurs, the applicable double taxation agreement must be applied.

For individuals, tax treaties based on the OECD Model Tax Convention use a sequence of criteria to resolve dual-residence conflicts. These may include a permanent home, closer personal and economic relations, habitual abode and nationality.

Only the application of the relevant treaty determines residence for the purposes of that treaty. This is a separate stage of the analysis. First, it is necessary to establish whether the individual qualifies as resident under the domestic law of each country and, if a conflict arises, apply the relevant treaty.

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What happens if a foreign business owner moves to Poland?

The tax residency rules also operate in the opposite direction. A foreign business owner, shareholder or management board member who transfers their centre of personal or economic interests to Poland or stays here for more than 183 days in a tax year may become a Polish tax resident.

As a rule, a Polish tax resident is subject to unlimited tax liability, meaning that income is taxed in Poland regardless of where it is earned, subject to the applicable double taxation agreements.

This also applies to income from business activities earned outside Poland. For a foreign business owner, this may require an assessment not only of remuneration or private investments, but also of foreign business activities, shareholdings in companies and other sources of income.

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What are the tax implications if a foreign company is managed from Poland?

A separate issue arises where a business owner moves to Poland but continues to manage a foreign company. The tax residency of the owner and the tax residency of the company are two separate matters. Moving a shareholder or management board member to Poland does not therefore automatically change the foreign company’s tax residency.

At the same time, the Polish Corporate Income Tax (CIT) Act provides that a taxpayer may be regarded as having its management in Poland where, among other things, its current affairs are conducted in Poland in an organised and continuous manner. Regularly managing a foreign company from Poland may therefore require a separate analysis under the CIT rules and the applicable international tax treaty.

For a foreign business owner moving to Poland, two separate questions should therefore be considered:

1. Do I become a Polish tax resident as an individual?
2. Does my presence and activity in Poland affect how my foreign business is taxed?

For certain individuals transferring their place of residence to Poland, a separate assessment may also be required in relation to the lump-sum tax on foreign income for individuals transferring their place of residence to Poland provided for in the PIT Act. This is a specific, conditional tax regime and does not automatically apply to everyone who becomes a Polish tax resident.

Foreign business owners planning to conduct business or manage a company from Poland may combine their tax residency analysis with tax advisory in Poland and an assessment of the obligations connected with doing business in Poland.

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How can you prove a change of tax residency?

The most important factor is a consistent body of evidence showing where the taxpayer actually lives, conducts their daily life and concentrates their economic activity. Documentation should confirm reality rather than replace it.

Depending on the circumstances, useful evidence may include:

• a foreign tax residence certificate;
• a tenancy agreement or document confirming ownership of a property;
• local tax returns and tax documents;
• insurance and healthcare documentation;
• utility bills;
• documents relating to children’s education;
• records allowing the actual number of days spent in each country to be established.

For business owners, it is also worth documenting the commercial dimension of the relocation. Relevant factors may include where business meetings take place, where activities are performed, contracts are entered into, assets are managed and decisions are made, as well as the location of employees, customers and business infrastructure.

A foreign tax residence certificate may be important evidence, but determining Polish tax residency still requires an assessment of the actual circumstances and, where necessary, the application of the relevant double taxation agreement.

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Can tax residency change during the tax year?

Yes. Tax residency can change during the year if, at a particular point in time, the circumstances determining an individual’s place of residence for tax purposes actually change.

This may mean that for part of the year the individual is subject to unlimited tax liability in Poland and, following an effective change of residence, becomes subject to limited tax liability in relation to income that may still be taxable in Poland.

It is therefore important to determine and document the actual date on which the circumstances changed, rather than relying solely on the date on which a new address was reported.

For a business owner, this may be relevant when allocating income earned before and after the change of tax residency and when analysing potential exit tax implications.

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Can working or running a business from another country create additional tax exposure?

A change of tax residency may affect more than the individual who moves abroad. Where a business owner, management board member or employee begins regularly performing duties from another country, it is also necessary to consider whether that activity may create a permanent establishment of the business there.

This issue has become particularly relevant with the growth of cross-border remote working. The 2025 update to the OECD Model Tax Convention contains more detailed guidance on circumstances in which the home of an individual working in another country may constitute a place of business of the enterprise.

The OECD indicates that where an individual works from their home or another location abroad for less than 50% of their total working time for the relevant enterprise during any 12-month period beginning or ending in the relevant tax year, that location is generally not regarded as a place of business of the enterprise.

Where the proportion of work carried out from that location is at least 50%, all relevant facts and circumstances require further analysis, including whether there is a commercial reason for carrying on the business activity from that country.

This is not, however, an automatic threshold arising from Polish legislation. The applicable tax treaty and the specific facts must be considered in each case. From the company’s perspective, permitting an owner, manager or employee to work abroad for an extended period may therefore require a prior tax assessment.

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What about the Social Insurance Institution (ZUS) and social security?

Tax residency and the applicable social security system are separate matters. Changing tax residency does not automatically result in deregistration from the Polish social security system.

Where work is performed in several EU or EEA countries or Switzerland, the rules coordinating social security systems apply. In certain circumstances, an A1 certificate may also be relevant.

Since 1 July 2023, Poland has also participated in the Framework Agreement on habitual cross-border telework. Where its conditions are met, it may be possible to remain covered by the social security system of the country in which the employer has its registered office where telework is performed in the country of residence for at least 25% but less than 50% of total working time.

The Framework Agreement does not, however, apply to self-employed individuals.

Companies employing people who work between Poland and other countries should combine the tax analysis with payroll services in Poland and an assessment of the applicable social security system.

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How can changing tax residency in Poland affect exit tax?

A business owner, shareholder or owner of significant assets should also check before changing tax residency whether the relocation may trigger tax on unrealised gains, commonly referred to as exit tax. This tax may be relevant, among other circumstances, where a change of tax residency causes Poland to lose the right to tax income from the future disposal of certain assets.

For individuals, the exit tax provisions do not apply where the total market value of the transferred assets covered by these rules does not exceed PLN 4 million.

The conditions, scope of assets and settlement rules are discussed in more detail in our article Exit tax in Poland – when does tax on unrealised gains arise?

It is important to distinguish between the tax liability itself and the deadline for payment. The Regulation of the Minister of Finance and Economy of 22 September 2025 extended the period for which payment of exit tax by individuals is deferred.

If the taxpayer loses all or part of an asset subject to the tax before 1 December 2027, the payment deadline falls on the seventh day of the month following the month in which that loss occurs. In all other cases, the deadline has been extended to 31 December 2027.

The deferral applies to tax resulting from monthly returns for settlement periods from 1 January 2019 to 30 November 2027. Deferring the payment deadline does not, however, mean that potential exit tax can be disregarded when planning a relocation.

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Do you need to file ZAP-3 after changing tax residency?

The ZAP-3 form is used to update an individual’s details, including their residential address, but filing it does not, by itself, change their tax residency.

For business owners, the required formalities also depend on the legal form and manner in which the business is conducted. Updating an address in tax documentation or official registers is an administrative step, whereas tax residency is determined by the actual circumstances specified in the PIT Act and the applicable international treaties.

A change of data reported to an authority should therefore not be treated as equivalent to the actual date on which tax residency changes.

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How should a business owner prepare for a change of tax residency?

A business owner relocating between countries should first carry out an analysis covering both their personal and business circumstances.

1. Determine the actual date of relocation – establish where the individual’s home, family and daily life are located from that point onwards.
2. Map economic connections – including business activities, companies, sources of income, assets, investments, bank accounts and places where decisions are made.
3. Check the applicable double taxation agreement – particularly where both countries may regard the individual as tax resident.
4. Separate the owner’s position from that of the business or company – a change in personal tax residency does not automatically determine how the business is taxed.
5. Assess permanent establishment exposure – both where part of the business remains in Poland and where business activity begins to be carried on from the new country.
6. Check exit tax before relocating – particularly where the individual owns shares, securities or other significant assets.
7. Determine the social security and payroll implications – where the work performed by the owner or manager also moves between countries.
8. Collect documentation from the outset – reconstructing physical presence, business decisions and actual economic connections at a later stage may be considerably more difficult.

This analysis helps avoid a situation in which a business owner first changes their country of residence or the way their business operates and only afterwards determines the tax consequences of those decisions.

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What should business owners remember about tax residency in Poland?

An effective change of tax residency is not simply a matter of counting days or reporting a new address. The key issue is whether the taxpayer continues to have their centre of personal or economic interests in Poland, as well as how their position is treated under the law of the other country and the applicable double taxation agreement.

For a business owner, the analysis should go one step further. The owner’s personal tax residency, place where the business is conducted, potential permanent establishment exposure, the position of companies they own and any potential exit tax must be assessed separately.

The same principle applies to foreign business owners moving to Poland. Becoming a Polish tax resident may affect the taxation of foreign income, while managing the affairs of a foreign company from Poland may create additional tax consequences.

Where a business owner’s planned relocation involves Poland and another country, its consequences should be assessed before changing the individual’s place of residence or the way the business is operated. Tax advisory in Poland may include an assessment of tax residency, the applicable international tax treaty, permanent establishment exposure and obligations connected with the business activity.

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