Tax incentive for new Polish residents

Tax Incentive for Foreigners Moving to Poland (Ulga na Powrot): Up to 115,528 PLN Tax Free

Q: Do I need to have lived in Poland before?

No. There is no requirement to have ever lived in Poland. What matters is that you become a Polish tax resident after at least three years of tax residence abroad.

Last updated: April 2026 · Published: February 2026 · Jerzy Gaweł, Tax Advisor

This is a Polish tax incentive for people who move their tax residence to Poland. Its Polish name, Ulga na Powrot (literally "return relief"), is misleading: you do not need to be Polish and you do not need to have ever lived in Poland before. New Polish tax residents can earn up to 115,528 PLN per year with no Polish PIT for four years. Most of our clients first meet this relief when we prepare their annual Polish tax return on their foreign income, and we apply it automatically where they qualify.

The name is misleading. Despite the translation "return relief", this benefit is not limited to Poles coming back. Any person who becomes a Polish tax resident after living abroad for at least three full calendar years may qualify, including foreigners who have never previously lived in Poland.

Quick eligibility check

You will usually qualify if all of the following are true:

You lived outside Poland for at least 3 full calendar years.
You became a Polish tax resident after 31 December 2021.
You earn employment income or business income in Poland.

If this fits, you may earn up to 115,528 PLN per year without Polish PIT for four consecutive tax years.

See our expat tax return service Check eligibility (calculator)

1. What is this incentive (Ulga na Powrot)?

It is a Polish tax incentive for individuals who move their tax residence to Poland after living abroad for at least three years. The incentive exempts up to 85,528 PLN of income per year from Polish income tax for four consecutive tax years. Combined with the standard Polish tax free allowance of 30,000 PLN, a taxpayer can effectively earn up to 115,528 PLN per year without paying Polish PIT.

The Polish statutory name translates as "return relief", but the incentive is not limited to people returning to Poland. Foreigners who move their tax residence to Poland qualify on equal terms once the statutory conditions are met.

Available to both foreigners and Polish citizens.
Applies after you become a Polish tax resident.
Covers employment income and business income.
Can be used for four consecutive tax years.

2. Conditions and basic rules

The incentive applies when several statutory conditions are met at the same time:

You became a Polish tax resident after 31 December 2021.
You were not a Polish tax resident for at least three calendar years before the move.
You earn qualifying income in Poland, such as employment income or business income.
You can document your previous residence abroad (for example a foreign certificate of tax residence).

General information, not individual tax advice. Whether you qualify depends on your specific facts, the timing of your move and your documentation. We confirm eligibility on a case by case basis before applying the incentive.

3. The math: how the two benefits stack

The core of the incentive is an income exemption. It stacks with the general tax free allowance, creating a much larger effective tax free zone.

Your combined tax free zone per year

115,528 PLN

85,528 PLN (incentive) plus 30,000 PLN (general allowance)

Many foreigners moving to Poland do not claim this incentive in time, because the Polish name suggests it applies only to people returning. In practice it is one of the most valuable tax benefits available to new Polish tax residents.

Annual income	Standard PIT (no incentive)	With incentive and allowance	Your annual saving
100,000 PLN	8,400 PLN	0 PLN	8,400 PLN
150,000 PLN	20,400 PLN	4,137 PLN	16,263 PLN
200,000 PLN	36,400 PLN	10,137 PLN	26,263 PLN

Simplified illustration on the general tax scale. It does not include social security or health contribution effects, which follow their own rules.

4. Who qualifies in practice

Typical beneficiaries

Foreign professionals who moved to Poland for employment or business.
Polish citizens returning after several years abroad.
Managers, contractors and self employed individuals who became Polish tax residents after 2021.

The decisive issue is usually not citizenship, but proving prior residence abroad and the timing of the move to Poland.

Eligible jurisdictions

You qualify under the residence route if you lived continuously for at least three years in an EU or EEA country, Switzerland, or another country covered by Polish PIT rules and the applicable information exchange framework.

EU members EEA Switzerland United Kingdom USA Canada Australia Japan New Zealand South Korea Israel Chile Mexico Karta Polaka

5. Legal basis and documentation

The incentive is grounded in Article 21 section 1 point 152 of the Polish Personal Income Tax Act of 26 July 1991. To use it safely, keep a simple evidence file in case of a standard audit by the National Revenue Administration (KAS).

What to keep in your evidence file

Foreign tax residence proof: certificates of tax residence or equivalent proof for the 3 years before the move.
Center of life abroad: lease, utility bills, employment records, school records, insurance, bank statements.
Travel pattern: entry and exit history, tickets, boarding passes, passport stamps if relevant.
Timing note: you can start in the year of arrival or from the next year, which matters if you arrived late in the calendar year.

Citizenship alone is not enough. In practice, audits focus on facts: where you lived and where your personal and economic life was centered.

Official government explanation: Ulga na powrot on podatki.gov.pl.

6. The four year window and start year choice

The incentive lasts for four consecutive tax years, and you choose when it starts.

Option	When it starts	When it helps most
Start in the year of arrival	Year you become a Polish tax resident	When you arrive early in the year and have Polish income soon
Start from the next year	1 January of the following year	When you arrive late in the year and want a full earning year under the limit

This choice is often the difference between wasting part of the limit and using it fully.

7. B2B and employment scenarios

For B2B professionals

The incentive applies to business income and can be used with the tax scale (Skala podatkowa), flat tax (Podatek liniowy) and lump sum (Ryczalt) regimes. It reduces PIT up to the annual limit, but it does not change health contributions.

Tax scale 12% and 32%: the incentive delays entry into the 32% bracket and often keeps you below it.
Flat tax 19%: it reduces the PIT base, while the health contribution follows separate rules.
Lump sum: it can effectively zero PIT on revenue up to the limit, which is material at higher lump sum rates used in IT and consulting.

For employees and managers

With a standard employment contract, your employer can apply the incentive during the year, increasing your monthly take home pay.

If it was not applied, you can still recover the full benefit through your annual PIT return or a correction.

8. Compatibility with other tax benefits

Many people assume this incentive blocks other deductions. It does not. In most cases you apply the incentive first, then use other deductions against any remaining tax.

Feature	Compatibility	Practical effect
Joint filing with spouse	Compatible	Can materially improve the result, especially if both spouses qualify
Child tax credit	Compatible	Apply the incentive first, then reduce remaining tax with child credits
Social security and health	Not covered	The incentive applies to PIT only. Contributions follow their own rules

9. What income qualifies

The incentive applies to selected income types earned after you become a Polish tax resident:

Employment contracts (umowa o prace)
Mandate contracts (umowa zlecenie)
B2B business activity (scale, flat tax and lump sum)
Maternity benefit (zasilek macierzynski)

Exclusions: rental income, capital gains (stocks and crypto) and dividends are not covered by the 85,528 PLN exemption. These are taxed separately, and we handle them within the same annual return.

10. How we handle this for you

We do not sell "return relief filing" as a standalone product. Our service is the full annual Polish tax return for individuals who are Polish tax residents and receive foreign or worldwide income (PIT-36 with the ZG annex, PIT-38 for capital gains, and related forms).

When you qualify for this incentive, we apply it inside that return automatically, together with the general tax free allowance and any other deductions you are entitled to. You get one correct filing rather than a separate service for each relief.

Foreign income tax return service Foreign income reporting guide

11. Frequently asked questions

Can foreigners use this incentive?

Yes. It is available not only to Polish citizens returning to Poland, but also to foreigners who become Polish tax residents after living abroad for at least three full calendar years and meeting the statutory conditions.

Do I need to have lived in Poland before?

No. There is no requirement to have ever lived in Poland. The "return" in the Polish name is misleading. What matters is that you become a Polish tax resident after at least three years of tax residence abroad.

How many years does it last?

It is available for four consecutive tax years, starting from the year you moved to Poland or the year immediately following it.

Do I need to submit certificates of residence to the tax office?

You do not attach them to your PIT return, but you should keep evidence of your three year absence in case of an audit.

Does it reduce ZUS?

No. It applies only to PIT. Social security and health contributions are calculated normally.

Can I start it from the next tax year?

In many cases yes. You can often choose to start either in the year you become a Polish tax resident or from the following tax year. This choice matters if you moved to Poland late in the calendar year.

Does it combine with the 30,000 PLN tax free allowance?

Yes. The benefits are cumulative. The first 85,528 PLN is exempt under the incentive, and the next 30,000 PLN falls under the standard tax free allowance, so you pay 0 PLN income tax on earnings up to 115,528 PLN per year.

Moving to Poland with foreign income?

We prepare your full annual Polish tax return on your foreign and worldwide income, and we apply this incentive automatically where you qualify. One filing, all reliefs handled.

See the expat tax return service