Foreign Income Tax Poland 2026 Guide

1. Introduction

If you live in Poland and possess Polish tax residency in a given tax year you have an obligation to settle all your income earned in that specific year in Poland regardless of the country in which it was obtained.

This obligation applies only to the years in which you were actually a Polish tax resident. If you are not sure whether you met the Polish tax residency criteria in a given year you can use our free residency verification tool available at

Polish tax residency test

Settlements are subject to among others

• remuneration from work abroad
• income from foreign companies
• rental of real estate located outside of Poland
• dividends and other capital income
• brokerage and investment accounts
• cryptocurrencies
• other foreign sources of income

In many cases thanks to double taxation avoidance agreements real double taxation will not occur. The goal of these agreements is to eliminate situations in which the same income would be taxed in two countries simultaneously. However this does not change the fact that the income must be disclosed in the Polish annual tax return. Lack of declaration is a violation of regulations even if the final tax is 0 PLN.

2. Do you have to settle if you live in Poland?

Yes. Polish regulations impose an obligation on tax residents to demonstrate worldwide income. If your source of income is located outside of Poland and Poland is your country of tax residence, you have an obligation to settle this income in Poland.

Poland participates in the CRS and FATCA systems for the automatic exchange of financial information. Financial institutions transfer data about accounts to tax administrations, and these transfer them to the taxpayer's country of residence.

In practice, the tax office can obtain information about:

• foreign bank accounts,
• brokerage accounts,
• paid dividends,
• income from the sale of financial instruments,
• account balances.

The fact that the account is located abroad does not mean that it is out of reach of the Polish tax office.

Step by step Reporting foreign income in Poland

3. Most popular sources of foreign income

3.1 Remuneration from work

If you work abroad or receive remuneration from a foreign company this income should be demonstrated in Poland in the PIT 36 form together with the PIT ZG attachment. The PIT ZG attachment is filed separately for each country of source.

3.2 Rental of real estate abroad

If you own real estate abroad from which you obtain income this income must be demonstrated in the Polish annual tax return. It does not matter if the tax has already been paid in the country where the property is located. It is key to determine which method of avoiding double taxation applies.

3.3 Brokerage and investment accounts

If you have a brokerage or investment account outside of Poland as a rule you must settle all operations on this account in Poland. It does not matter in which country the broker operates in what currency the account is maintained or on which market the instruments are listed.

The following are subject to settlement among others dividends sale of shares and ETFs investment funds derivatives and cryptocurrencies. This income is demonstrated in the PIT 38 form and in the case of foreign sources PIT ZG is additionally filed. The lack of a Polish information form from the broker does not exempt you from the obligation to settle. The obligation results from the law.

4. How double taxation avoidance agreements work

The goal of double taxation avoidance agreements is to eliminate the taxation of the same income twice. Agreements distinguish between the state of source which is the country in which the income arises and the state of residence which is the country in which the taxpayer is subject to unlimited tax liability.

In practice two main methods are used

• Exemption with progression method foreign income is not re taxed in Poland but it affects the determination of the tax rate for other income
• Proportional deduction method income is taxed in Poland and the tax paid abroad can be deducted within a specified limit

The exemption with progression method is usually more favorable because it does not lead to a real tax surcharge in Poland. The proportional deduction method can cause a surcharge of the difference if the foreign tax was lower than the tax due in Poland.

5. Practical examples

5.1 United Kingdom

The taxpayer lives in Poland and owns a company in the United Kingdom. They pay themselves remuneration and dividends. If in the UK the remuneration fits within the local tax free amount and tax does not occur there the income still must be demonstrated in Poland. If the proportional deduction method applies an obligation to pay tax may arise in Poland because there is no foreign tax to deduct. Dividends are settled in Poland in PIT 38 at a 19 percent rate. The most common mistake is the assumption that the lack of tax in the country of source means no obligations in Poland.

5.2 Germany

The taxpayer lives in Poland and works in Germany. German income is demonstrated in PIT 36 together with PIT ZG. In many cases the exemption with progression method is used. This means no re taxation in Poland but an impact on the tax rate for domestic income. The most common mistake is not demonstrating income only because the tax has already been collected abroad.

6. Deadline, tax payment, and settlement technique

The tax season in Poland begins on February 15 and lasts until April 30 of the year following the tax year. The return for a given tax year is filed in the year following that year. In the same period, any missing tax should be paid.

Do not leave the settlement to the last minute. Preparing a declaration covering foreign income often requires several days of work related to completing documents and analyzing double taxation avoidance methods. Income in foreign currencies is converted into zlotys according to the NBP average exchange rate from the day preceding the day the income was obtained.

7. Settlement Relief and other tax reliefs

If you transferred your tax residency to Poland after a period of staying abroad, you may have the right to the so called settlement relief. This relief allows for tax exemption of a specific part of income for the period indicated in the law.

Detailed information and a calculator can be found at:

Settlement Relief Calculator and Eligibility Test

Our goal is not only the correct settlement of income but also the use of all available, legal tax preferences, including child reliefs, family reliefs and rehabilitation reliefs.

8. Frequently asked questions

If I paid tax abroad do I have to settle it in Poland
Yes. Foreign tax payment does not exempt you from the obligation to demonstrate income in Poland. Depending on the applicable double taxation avoidance method the income may be fully exempt in Poland under the exemption with progression method while still increasing the effective tax rate applicable to your other income. Alternatively under the proportional deduction method the income may be taxed in Poland with the foreign tax credited against Polish tax within statutory limits. In practice reporting is always required and the final Polish tax depends on a detailed calculation.

Does the lack of tax in the country of source mean no tax in Poland
No. In Poland an obligation to pay tax may arise. In particular if no tax was paid abroad there is no foreign tax available for credit under the proportional deduction method which may result in an actual additional tax liability in Poland.

Can the office find out about my foreign account
Yes. Poland as a member of the European Union participates in automatic exchange of financial information under CRS and related international agreements. Information is exchanged automatically with all EU countries and with a large number of other jurisdictions worldwide. In practice you should assume that such exchange of information will take place.

9. How we can help

• Reporting foreign income and full tax settlement We will settle all sources of your income including employment abroad rental income pensions business activity and investment income. We will also apply all available tax reliefs and deductions to which you are entitled. Contact us directly by email at contact@saregofinance.pl.
• Polish Settlement Tax Relief also available to individuals who move to Poland for the first time and become Polish tax residents. You can check your eligibility here Settlement Tax Relief guide and calculator.
• Settlement of capital gains tax on Polish and foreign investments including dividends shares ETFs and other financial instruments. The service can be purchased here PIT 38 services in English.
• Polish inheritance tax declarations for assets located in Poland including real estate shares and other property rights also available for non Polish tax residents. See more details here Inheritance in Poland legal and tax support guide.

Checklist How to comply with foreign income tax Poland rules

• Confirm Polish tax residency status.
• Collect all foreign income documents and statements.
• Determine applicable double tax treaty method.
• Convert income using correct NBP exchange rates.
• File PIT 36 PIT 38 and PIT ZG where required.
• Apply Settlement Tax Relief or other available reliefs.

10. Further steps

Contact us by email and send all information regarding your tax situation. Before starting work make sure that the year you want to settle was a year of your Polish tax residency. If you are not sure use our tool

Polish tax residency test

About the author

Jerzy Gawel is a Polish licensed tax advisor and partner at Sarego Finance. He specializes in foreign income tax Poland compliance, reporting foreign income in Poland and cross border tax settlements.