Expat’s Guide to Navigating Taxes in Poland: What You Need to Know
September 28, 2023
Are you an expat living in Poland and confused about the tax requirements? Don’t worry, you’re not alone. This guide aims to simplify your tax obligations and options in Poland.
Introduction: Don’t Stress Over Polish Taxes
First and foremost, relax. When compared to other Western nations, Poland’s tax rates are relatively moderate, and the system is less complicated than you might think. For detailed insights on tax rates and the overall complexity, click here.
Understanding Tax Residency: A Crucial First Step
Your second task is to establish your tax residency status. Polish tax laws will generally apply to you only if you’re a tax resident in Poland. To determine your eligibility as a tax resident, follow the guidelines provided here.
Common Tax Scenarios for Expats in Poland:
1. Employed with No Foreign Income:
If you fall into this category, your employer will take care of all the tax-related formalities. Filing an annual tax return is optional. There’s no need for separate registration at the tax office.
2. Employed with Foreign Income:
Though your employer will handle the local tax components related to your employment, you are required to declare any foreign income you have. Don’t worry, double taxation is usually not an issue. To learn more about reporting foreign income, click here.
3. Registered Business Owner in Poland:
As a business owner in Poland, you are responsible for managing your taxes independently. Depending on your chosen tax regime, the most commonly applied being the lump sum tax, your duties might include:
- Calculating and making monthly tax deposits
- Reporting to the social security office (ZUS) each month
- Making monthly contributions to the social security office (ZUS)
- Filing an annual tax return
Unless you’re well-versed in taxation, we recommend utilizing the services of a professional accountant, such as SaregoFinance.
Summary:
Simply put, if you are employed without any foreign income, your employer will usually take care of your tax requirements. However, if you have foreign income or own a registered business in Poland, you’ll likely need the expertise of a professional accountant.
Jerzy Gaweł
Partner – Tax Advisor
