Poland is an increasingly popular destination for international workers, offering growing job opportunities, a relatively low cost of living, and vibrant cities like Warsaw, Kraków, and Wrocław.
If you’re planning to live and work in Poland, understanding the tax implications is essential to staying compliant with Polish law and managing your finances effectively.
In this article, we’ll explain the key tax rules for international workers in Poland, including residency status, income tax rates, filing obligations, and helpful tips to avoid double taxation.
Do International Workers Pay Tax in Poland?
Yes. If you earn income while living or working in Poland, you are generally subject to Polish income tax. Your exact tax obligations depend on your residency status and source of income.
Tax Residency in Poland
Poland determines your tax residency based on two main factors:
- You spend more than 183 days in Poland in a tax year
- You have a “center of vital interests” in Poland (e.g., your family, permanent home, or main economic activities)
If you are a tax resident of Poland:
You must pay tax on your worldwide income.
If you are a non-resident:
You are only taxed on income earned within Poland (Polish-source income), such as wages from a Polish employer or income from property located in Poland.
Note: Residency is determined by the Polish Tax Office. In complex cases, a written confirmation of residency status may be helpful.
Personal Income Tax Rates in Poland (2024)
Poland has a progressive income tax system for individuals:
- 0% on income up to 30,000 PLN per year (tax-free allowance)
- 12% on income between 30,001 PLN and 120,000 PLN
- 32% on income above 120,000 PLN
Example:
If you earn 150,000 PLN per year:
- The first 30,000 PLN is tax-free
- The next 90,000 PLN is taxed at 12%
- The remaining 30,000 PLN is taxed at 32%
Tax brackets are adjusted annually, so check with the Polish Ministry of Finance for updates.
Social Security Contributions
In addition to income tax, workers in Poland must pay social security contributions (ZUS), which cover:
- Pension (retirement)
- Disability
- Sickness
- Health insurance
These are usually automatically deducted from your paycheck if you’re employed by a Polish company.
Employer and Employee Contributions:
- Employers and employees share the cost
- Total social security can range between 19%–22% of gross salary
As a result, your net income (take-home pay) will be lower than your gross income.
Do You Need to File a Tax Return?
Yes—most international workers are required to file a Polish annual tax return (PIT) by April 30 of the following year.
You must file a tax return if:
- You are self-employed
- You earn income from multiple sources
- You claim deductions or tax relief
- Your employer did not settle your tax via payroll
Tax Return Forms:
- PIT-37: For employees taxed via payroll
- PIT-36: For self-employed or those with additional income
Returns can be filed:
- Online (e-PIT system on podatki.gov.pl)
- By mail
- In person at the tax office
Double Taxation Treaties
If you’re from a country that has a double taxation agreement (DTA) with Poland, you may be able to avoid paying tax on the same income twice.
Poland has DTAs with many countries, including:
- United States
- United Kingdom
- Germany
- India
- France
These agreements typically allow you to:
- Claim tax exemptions or credits
- Pay tax in only one country, depending on your residency and source of income
To benefit, you may need to:
- Provide a Certificate of Tax Residency from your home country
- Submit appropriate documentation to the Polish tax office
Tax Deductions and Relief
Poland offers several tax deductions and relief options, including:
- Expenses related to employment (e.g., work-related travel)
- Child tax credits
- Contributions to retirement savings (IKE, IKZE)
- Donations to public benefit organizations
Make sure to keep receipts and documentation to support any claims.
Tips for International Workers in Poland
- Get a PESEL number (national ID) or NIP (tax identification number) for tax filing
- Check your residency status if you travel frequently or have ties to multiple countries
- Register with ZUS (Social Insurance Institution) if self-employed
- Keep income records and proof of deductions
- Consult a tax advisor if you’re unsure about complex income or cross-border tax issues.
Conclusion
Understanding the tax implications for international workers in Poland is essential for staying compliant and managing your finances effectively.
Whether you’re here on a work contract, running a business, or freelancing, knowing your residency status, income tax obligations, and filing deadlines can save you from legal and financial trouble.
Make sure to explore your eligibility for tax reliefs, use official tax portals, and consult professionals when needed. With a little planning, you can make the most of your time and income in Poland.