2022, a similar exemption is applicable to, among others, individuals who return to Poland from a long stay abroad, parents with four or more children, or individuals who have passed the retirement age but continue to work and do not receive the pensions to which they are entitled.
Self-employment and business income. Taxable self-employment income consists of income from self-employment activities after the deduction of allowable expenses. Self-employment income is generally taxed with other income at the progressive rates set forth in Rates
Under certain circumstances, self-employment income may be taxed at a 19% flat rate (the difference between earnings and taxdeductible costs equals taxable income) or at a lump-sum tax with different rates depending on the nature of the business activity.
As of 2023, the only form of taxation for private rental is the registered income lump sum. All private rental income is taxed at one of two flat rates, which are 8.5% or 12.5%. The flat rate depends on the amount of income received by the landlords. The 8.5% flat rate applies to persons whose rental income during the year does not exceed PLN100,000; the 12.5% flat rate will apply to persons whose rental income during the year exceeds PLN100,000 (the 12.5% rate applies to the excess over PLN100,000).
Beginning with 2023, it is not possible to apply progressive rates unless the rental of real estate is conducted within a business activity. For the taxation of real estate sales, see Capital gains.
Directors’ fees. In general, directors’ fees paid to residents are taxed with other income at the rates set forth in Rates. Directors’ fees paid to nonresidents are subject to a final withholding tax of 20%.
Investment income. Interest income derived in Poland (except for interest derived from loans connected with business activities) and income derived from capital (investment) funds in Poland are generally taxed at a flat rate of 19%. Dividends from Poland are generally taxed at a flat rate of 19%. In general, interest on personal bank account deposits is taxed at a flat tax rate of 19%. In principle, all of these taxes are withheld at source.
Taxation of employer-provided stock options. In general, employerprovided stock options are taxed at the time of exercise on the difference between the fair market value at the date of exercise and the exercise price. This amount is generally taxed at the standard progressive tax rates. However, this amount may be exempt from tax for employees or contractors granted the right to obtain shares of a joint stock company seated in a European Union (EU) or European Economic Area (EEA) Member State or in a state that has entered into a double tax treaty with Poland (the Company), based on a resolution of the shareholders’ meeting of the Company, or of the joint-stock company dominant (according to the Polish Accounting Act) to the Company, implementing the incentive program (which is legally defined).
At the time the shares are sold, an amount equal to the sale price decreased by the exercise price and by the amount of the taxable income recognized at the time of exercise is taxed at a 19% rate.
Contributions for retirement insurance are paid half by the employer and half by the employee. For disability insurance, the employer covers 6.5% and the employee covers 1.5%. The employee pays the entire sickness insurance contribution, and the employer pays the entire industrial injuries insurance contribution. The maximum annual base for calculating retirement and disability contributions is 30 times the projected national average monthly remuneration for that year (PLN234,720 for 2024).
As a result of Poland’s accession to the EU, it is covered by the EU social security regime, which is principally provided in European Community (EC) Regulations 1408/71 and 883/2004.
Health care system. In general, contributions to the health care system are levied at a rate of 9% on the employee’s assessment base, which is gross remuneration after deduction of the employee’s contributions to retirement, disability and sickness insurance. However, there are several exceptional rates of health care contribution for individuals conducting individual business activity who pay the flat 19% tax or use lump-sum taxation. Beginning with 2022, health care contributions are no longer deductible for personal income tax purposes.
D. Tax filing and payment procedures
The tax year in Poland is the calendar year. By 30 April following the close of the tax year, taxpayers must file tax returns and pay any difference between total tax payable and advance payments. Married persons who are Polish tax residents may be taxed jointly, if certain conditions are met. Under additional conditions, joint filing may be available to Polish tax nonresidents who are tax resident elsewhere in the EU, the EEA or Switzerland.
Income tax may be generally withheld directly by employers on behalf of employees and remitted to the tax office within 20 days after the end of the month in which the income is paid or made available to the employee. Self-employed individuals and expatriates on temporary assignments to Poland who are paid from abroad must generally make advance tax payments each month, and must file annual tax reconciliations stating their income received and the advance tax paid by 30 April of the following year.
The following employer-reporting obligations are in force:
• Polish Labor Inspectorate notification duty regarding new assignees
• The Common Reporting Standard of the Organisation for Economic Co-operation and Development (OECD) regarding the tax residency of financial institutions’ customers
E. Double tax relief and tax treaties
Poland has entered into double tax treaties with the jurisdictions listed below. Most of the treaties follow the OECD Model Convention.
Albania (e)(h) India (h) Philippines
Algeria (a) Indonesia (h)
Portugal (e)(h)
Armenia (h) Iran Qatar (h)
Australia (h)
Austria (h)
Azerbaijan
Ireland (e)(h)
Romania (h)
Isle of Man (c) Russian Federation (h)
Israel (h)
Saudi Arabia (h)
must register within four days after their arrival in Poland if their stay in Poland is to exceed 30 days.
A foreigner who leaves the country with the intention of staying permanently outside the borders of Poland is required to report his or her departure. Notification of departure outside the borders of Poland results in deregistration from the place of permanent and temporary residence in Poland.
H. Work permits and self-employment
Work permits. Polish law concerning the employment of expatriates is subject to frequent change. In general, foreign nationals wishing to work in Poland must obtain a work permit. However, citizens of the EU and EFTA states are exempt from the requirement of obtaining a work permit in Poland.
Work permits for foreigners are required for the following types of employment:
• Type A: A foreigner works in Poland under an employment contract with an entity whose headquarters, place of residence, branch, permanent establishment, or other form of activity is located in Poland.
• Type B: A foreigner performing a function in the management board, acting as a proxy or a general partner of a legal person entered into the Register of Entrepreneurs or of a company under organization remains in Poland for more than a total of six months in any 12-month period.
• Type C: A foreigner is employed by a foreign employer and is posted to Poland for a period longer than 30 days in a calendar year to a branch or a permanent establishment of the foreign entity, or its related entity, as defined in the Act of 26 July 1991 on income tax from individuals.
• Type D: A foreigner employed by a foreign employer that has no branch, permanent establishment or other form of an organized business activity in Poland is delegated to Poland for the purpose of performing temporary and occasional services (export services).
• Type E: A foreigner is employed by a foreign employer and is delegated to Poland for a period longer than 30 days in any sixmonth period for purposes other than those listed for Types C and D.
• Type S: A foreigner is employed as a seasonal worker in areas such as agriculture, gardening and tourism. It allows foreigners to work in Poland for a maximum period of nine months in a calendar year and is available for nationals from all countries.
Work may be also executed after obtaining the so-called “single permit” (unified permit). If a local Polish contract will be signed with the foreigner, in certain cases, when applying for the work permit for the foreigner, it is necessary to prove that an employer is not able to fulfill the need of employment using local individuals (that is, to obtain a so-called “negative labor market test”). The Minister of Family and Social Affairs publishes the list of the professions that are exempt from performing the labor market test in order to prove that an employer is not able to fulfill the need of employment. The list contains, among others, a wide range of information technology (IT) professions, engineers, medical professions and construction specialists.
Foreigners who are staying in Poland based on a tourist visa or family/friends visit visa are not able to apply for the residence permit with a right to work in a unified procedure.
A work authorization application must be accompanied with a statement that the company has never been convicted of crimes connected to employment, human trafficking and forgery of documents. After the work permit is granted, the foreigner must obtain a visa with the right to work in the Polish consulate of his or her country of origin or a residence permit in Poland (possible only if the person is legally present in Poland). A foreigner may work in Poland only if he or she is staying in Poland legally (including visa-free travel).
An entity planning to employ a foreigner should apply for the issuance or extension of a work permit at least 120 days before the planned employment date or expiration date of the preceding work permit.
A work permit is issued for an individual foreigner. The work permit includes details regarding the employer, the position or type of work to be performed by the foreigner, remuneration and the expiration date of the permit.
Each year, a maximum yearly limit of work authorizations that can be issued by the authorities may be introduced. It needs to be checked whether the limits have been introduced.
The work permit may be revoked if any of the following occurs:
• The recipient performs activities contrary to those set out in the permit.
• The recipient loses certain qualifications required for the performance of the job (for example, a driver’s license is withdrawn).
• The recipient acting on behalf of the employer in labor law matters grossly and persistently breaches the labor law rules.
The fees for submitting an application for a permit are the following:
• PLN100 if the work of a foreigner is to last longer than three months
• PLN50 if the work of a foreigner is to last no longer than three months
The following foreigners, among others, may be exempted from the work permit requirement:
• A foreigner authorized to live and work in the EU, employed by an employer established in the EU and assigned to provide services in Poland.
• Citizens of Armenia, Belarus, Georgia, Moldova, or Ukraine who work during a period not exceeding 24 consecutive months on the basis of an employer’s declaration of the intention to employ such nationals, provided that such nationals are registered in the district employment agency competent for the place of residence or registered office of the entity submitting such declaration. If the application for a work permit or a residence permit with a right to work was submitted before the expiration of the foreigner’s declaration, the foreigner’s work remains legal after the expiration of the declaration until the issuance of
Depending on the purpose of the foreigner’s stay in Poland, the legislator has introduced several types of temporary residence permits, such as a temporary residence and work permit, a temporary residence permit for the purpose of performing highly qualified work and many others.
Some temporary residence permits may give a foreigner the right to work and the right to stay together (single permits).
Single permit. The procedure for obtaining a single permit is advantageous because all formalities for legalizing a foreigner’s stay and employment are carried out in a single administrative procedure; the foreigner does not have to apply separately for a residence permit (for example, a visa) and the employer for a work permit. The single permit for temporary residence and work, as a rule, entitles its holder only to perform work for the entity entrusting work to a foreigner, under the conditions and in the position specified therein.
Performing work for another entity that entrusts work to a foreigner, under different conditions or in a different position, usually requires obtaining a new temporary residence and work permit, its amendment, or obtaining an appropriate work permit or entering the declaration of entrustment of work to a foreigner in the register of declarations (depending on the situation of the individual case).
If a foreigner submits an application for a temporary residence and work permit during legal stay and the application has no formal deficiencies or the formal deficiencies are completed in time, the voivode will stamp the foreigner’s travel document. This stamp confirms the submission of the application.
The foreigner’s stay in Poland is legal from the date of submission of the application until the date on which the decision on granting a temporary residence permit becomes final.
A stamp in the travel document does not entitle the foreigner to travel in the territory of other Schengen countries.
The foreigner may travel to the country of origin. However, if the foreigner comes from a country that requires a visa, a visa must be obtained to return to Poland.
Foreigners who are not entitled to apply for a unified permit are the following:
• Employees posted to Poland by an employer established outside Poland
• Those staying on the territory of Poland on the basis of obligations arising from international agreements facilitating the entry and temporary stay of certain categories of individuals engaged in business or investment activities
• Individuals carrying out economic activities in Poland
• Individuals performing seasonal work in Poland
• Individuals staying on the territory of Poland on the basis of a visa issued for the purpose of tourism or visiting family or friends
Blue Card. A popular and, from the employer’s point of view, important basis for obtaining a temporary residence permit is
• A person who has a valid Pole’s Card and intends to settle permanently on the territory of Poland
K. Special regulations for Ukrainian nationals.
The act on 13 March 2022 on assistance to Ukrainian citizens in connection with an armed conflict in the territory of that state specifies, inter alia, special rules for legalizing the stay of Ukrainian citizens (and their spouses who do not have Ukrainian citizenship) who came to Poland from the territory of Ukraine in connection with hostilities conducted on the territory of that country, and Ukrainian citizens who have a Pole’s Card, who came with their immediate family due to these hostilities on the territory of Poland.
The provisions of the act do not apply to citizens of Ukraine who have the following:
• Permanent residence permit
• Long-term resident’s EU residence permit
• Temporary residence permit
• Refugee status
• Subsidiary protection
• Permit for tolerated stay
The provisions of the act also do not apply to Ukrainian citizens who have submitted applications for international protection in Poland (or on behalf of which such applications have been submitted) or declared their intention to submit applications for international protection and those who are under the temporary protection on the territory of an EU Member State other than Poland, granted because of military action on the territory of Ukraine.
Legal stay on the territory of Poland. On 1 July 2024, an amendment to the Act on Support to Ukrainians entered into force in Poland. The law extends the legal stay of Ukrainian citizens in Poland until 30 September 2025. This applies to people who came to Poland from Ukraine and declared their intention to stay in the country (UKR status).
From 1 April 2023, Ukrainian citizens with a Powszechny Elektroniczny System Ewidencji Ludności (PESEL) number and UKR status can apply for a temporary residence permit for the purpose of employment (including work in a profession requiring higher qualification, the so-called Blue Card) or running a business. This solution is optional and is aimed at those who feel confident in the Polish labor market and wish to give up the temporary protection. The aforementioned amendment to the Special Law on Assistance to Citizens of Ukraine, which became effective on 1 July 2024, allows Ukrainian citizens with the status of UKR to apply for a temporary residence permit and makes it possible to apply for the aforementioned permit for the following:
• A family member of a citizen of the Republic of Poland (a spouse of a Polish citizen and a minor child of a spouse of a Polish citizen)
• Purpose of family reunification
If a foreigner is a citizen of Ukraine and applies for a temporary residence and work permit but does not meet the conditions for
offices in the context of the current mass influx of foreigners from the territory of Ukraine and the accompanying phenomena. The act introduces the legal basis (Article 100d) for suspending the time limits for settling the following administrative matters in proceedings conducted by voivodeship offices until 30 September 2025:
• Granting and withdrawing a temporary residence permit
• Changes to a temporary residence and work permit as well as a temporary residence permit for the purpose of performing work in a profession requiring a level of qualifications
• Granting and withdrawing a permanent residence permit
• Granting and withdrawing a long-term resident’s EU residence permit
Pursuant to the above provision, the voivode is not obliged to inform the party about the failure to settle the case on time, and the voivode will not send reminders to the Head of the Office for Foreigners for inactivity or for lengthy proceedings mentioned above in cases by bodies of first instance.
M. Family and personal considerations
Family members. Family members of expatriate applicants who obtain work or business visas may receive visas/residence permits as accompanying persons. Children who are above 18 years old must have their own purpose of stay, such as school or studies. These visas/residence permits may be issued for a period no longer than the period of validity of the primary applicant’s visa/ residence permit. EU citizens’ family members may obtain EU citizens’ family member cards. After five years, they acquire the status of permanent resident if they fulfill the respective conditions.
Marital property regime. A community property regime applies in Poland to married couples. Under the regime, property acquired before the marriage or during the marriage for proceeds received as an equivalent for the property acquired before the marriage remains separate. Couples may amend or opt out of the regime by a notarized agreement.
Forced heirship. Under Polish inheritance law, specified legal heirs, including descendants, surviving spouse and parents, are entitled to a legal portion of an estate if certain conditions are met.
Driver’s licenses. In general, foreign individuals may drive legally in Poland with their home country driver’s licenses or international driver’s licenses for a period of six months. After an individual has been in Poland for six months, he or she should change a foreign driver’s license to a Polish driver’s license. A driver’s license issued by another EU Member State does not have to be changed after six months.
Members of the diplomatic corps often enjoy special privileges with respect to driver’s licenses.
• Temporary intra-corporate transferee permits
• Temporary residence permits for business purposes for a foreigner working as a board member in a company in which he or she holds shares or as a proxy or general partner in a limited partnership or partnership limited by shares