Poland is a growing economic power in the European Union and also more and more digital nomads find their way to Poland. In this article, we’ll discuss if Poland tax residence is a good option for digital nomads.
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Tax Residence in Poland at a Glance
- Flexible criteria for tax residency
- Different taxation systems for freelancers
- Low corporate tax rate for small companies
- Growing communities of digital nomads
Benefits of Being a Tax Resident in Poland
Let’s have a look at the different taxes in Poland to see how you can benefit from Polish tax residency.
Poland Tax Residence: Personal Income Tax
If you get Poland tax residence, you will have to pay personal income tax on your worldwide income (including foreign income).
For professional income, Poland has two income tax brackets:
- Up to 120.000 PLN (around EUR 28.000): 12%
- Above 120.000 PLN: 32%
A tax free allowance of 30.000 PLN applies though.
In case your income exceeds one million PLN you have to pay an additional solidarity tax of 4%.
However, if you receive investment income like dividends or capital gains, a separate fixed rate of 19% applies.
Since 2019 Poland also levies an exit tax on individuals moving their tax residency out of Poland.
This is basically a capital gains tax on unrealized capital gains at the time of moving out.
Yet, a tax free threshold of four million PLN (around kEUR 940) applies. So, only if you surpass this threshold, you’ll actually have to pay the exit tax.
Moreover, if you had Poland tax residence for less than 5 out of the last 10 years, you also fall out of the scope.
Options for Freelancers in Poland
If you work as a freelancer, you have different options to calculate your taxes:
- Skala Podatkowa: Pay income tax according to the general tax brackets mentioned before. In this system you can deduct your expenses and benefit from the tax free allowance.
- Podatek Liniowy: Fixed rate of 19% on your profit after deducting your business expenses;
- Ryczałt od przychodów ewidencjonowanych: Lump sum taxation calculated on your revenue up to a maximum revenue of mEUR 2. The rates range from 2,5% to 17% depending on your activities. Most nomads will pay between 12-15% depending on their exact services.
The system you opt for will also determine how your health insurance contributions as a freelancer are calculated.
Poland Tax Residence: Social Contributions
If you receive professional income, you should not only focus on income tax. Another important element are the social contributions (ZUS).
If you work as an employee, both our employer and yourself have to pay part of the social contributions:
- Employee: 13,71% of gross salary plus 9% for health insurance
- Employer: 19,21-22,41% of gross salary
The maximum cap on which these contributions are calculated is 260.190 PLN (approximately kEUR 60) for 2025. After that, still some contributions are due but they are limited.
For self-employed individuals with Poland tax residence a separate set of rules apply.
They pay fixed social contributions:
- Without sickness insurance: 1.647 PLN
- With sickness insurance: 1.774 PLN
Furthermore, you’ll get an exemption from social contributions during the first six months after starting out.
In addition, for the next 24 months, you’ll also get to pay preferential contributions of respectively 410 and 443 PLN.
So, only after those first 30 months you’ll start paying the normal rates.
On top of this, you’ll also have to separately pay for health insurance each month. The contributions depend on which system you chose for your income taxes (see above).
The rate is 9% in case you pay your income tax according to the normal tax brackets.
In case, you opt for the 19% fixed tax rate, your contributions depend on your revenue:
- <85.000 PLN: 462 PLN
- 85.000-300.000 PLN: 770 PLN
- >300.000 PLN: 1.385 PLN
When you decide to pay the lump sum tax rates depending on your activity, the health insurance contributions are 4,9%.
Corporate Income Tax
If you decide to open a company in Poland, your company will pay corporate tax on its profits.
The standard corporate tax rate in Poland is 19%. However, if you qualify as a small company, the corporate income tax is only 9%.
In order to qualify as a small business, your revenue from the previous financial year can’t exceed two million Euros.
Moreover, Poland offers you to postpone the payment of corporate tax according to the Estonian model in case you meet certain criteria:
- Only natural persons as shareholders
- No participation in other companies
- Passive income (e.g. dividends, royalties) does not exceed 50% of the revenue
- Employ at least three persons apart from the shareholder
If you meet these criteria, you only have to pay your corporate tax in the year when you distribute a dividend.
Requirements for Obtaining Tax Residency
In order to obtain Poland tax residency you need to meet one of two criteria:
- Spend more than 183 days in Poland during the calendar year. Most digital nomads know this condition as the 183-day rule.
- Have your centre of vital interests in Poland. This is a more subjective approach and will depend on your situation. Elements that the authorities take into account are, for example, where you are registered, where you have your business, financial assets and where your close family lives.
My Tax Perspective on Being a Digital Nomad with Tax Residency in Poland
If you offer services as a freelancer, Poland does offer decent tax rates and social contributions whereby your total tax burden can be around 20-25%.
Yet, if you really want to optimize for taxes, there might still be some better options out there.
How to Get Tax Residency in Poland
If you are interested in Poland tax residence, you probably want to know what you need to do to get it.
Meet Tax Residency Requirements
The first step is to make sure that you meet the tax residency requirements we set out before.
This means you need to spend 183 days in Poland or make sure you have your centre of vital interests in the country.
Official Registration
If you’re planning to get Polish tax residency, you need to officially register with the Polish authorities
You’ll need a PESEL (personal identification number) and NIP (tax identification number).
These numbers will make sure you can deal with all the administration of being a Polish tax resident.
Ceasing Tax Residency in Poland
If you want to end Poland tax residency, you need to take a few steps.
Move Out
If you want to cease your tax residency in Poland you first need to make sure you limit the amount of time you spend in Poland. You can’t spend more than 183 days in the country.
Furthermore, you’ll have to make sure to cut as much ties as possible. So, if you have a home, sell or rent it out. Move your business abroad and open bank/investment accounts abroad.
Basically you need to do the opposite of what you would do when you want to obtain tax residency in Poland.
Establish New Tax Residency
Although you technically can have no tax residency at all, it’s often recommended to set up a tax residency in a new (lower tax) country.
Establishing a new tax residency will also help you with getting out of the Polish tax net. If you don’t, the Polish tax authorities might claim you still qualify as a tax resident of Poland.
Keep Documentation
Make sure to properly document your move out of Poland.
You should keep a copy of any documents that can prove you moving out of Poland, as well as documents showing you establishing yourself in a new country.
Examples could be you ending your lease in Poland or selling a property. Or, on the contrary, a long-term lease in a new country.
File Final Polish Tax Return
Don’t forget to file your final tax return for the year you left the country.
You’ll have to declare your worldwide income up to the time you ended your Polish tax residency. After that, you only need to declare any Polish source income.
If you were a Polish tax resident for at least five of the last ten years, you could also be subject to the exit tax (see above).
How is Poland for Digital Nomads?
Poland starts to attract more and more digital nomads for the following reasons:
- Cost of living: cheaper than Western European countries;
- Good internet: Poland offers a modern internet infrastructure with good speed and excellent mobile coverage;
- Growing infrastructure: more and more coworkings are opening up all around Poland but mainly in hot spots like Warsaw, Krakow Wroclaw, Poznan and Gdansk;
- Expanding community: for all those reasons, the digita nomad community in Poland is expanding.
Work With Me
Reach out if you want to know if Poland tax residence is a good choice for you or what other options might suit you better.