Expat Taxation: Income and Property Taxes in Poland

Published on October 25, 2025 and written by Cyril Jarnias

Navigating the tax landscape of a foreign country can be a complex undertaking, particularly for expatriates living in Poland. This article guides you through the maze of Polish taxation, detailing the income taxes and property taxes specific to non-residents.

Discover how to optimize your tax obligations while complying with local regulations, and explore the exemptions and deductions you may be eligible for. Whether you’re planning your move or reviewing your finances, understand how these crucial aspects of taxation can impact your lifestyle choices in Poland.

Tax System in Poland: What Expatriates Need to Know

The tax system in Poland applicable to expatriates covers several types of taxes, specific tax residency rules, as well as particular administrative procedures.

Types of Taxes Applicable to Expatriates in Poland

• Personal Income Tax (PIT) :
  • Two main brackets for employees:
    • 17% up to approximately 120,000 PLN (about €26,700)
    • 32% above that amount
  • Option for a 19% flat tax on income from non-agricultural individual business activities
• Capital Gains Tax :
  • 19% flat tax on capital gains, dividends, interest, and income from crypto assets
• Property Tax (local taxes) :
  • Paid by property owners, the amount varies by municipality and property value
• Other Taxes :
  • VAT (standard rate 23%, reduced rates 8% and 5%)
  • Transportation taxes, stamp duties, civil law transaction tax

Determining Tax Residency Status in Poland

• Considered a Polish tax resident is any person:
  • Staying in Poland for more than 183 days per year
  • Or whose center of personal or economic interests (center of vital interests) is in Poland
• Implications :
  • Tax residents: Taxed on their worldwide income
  • Non-residents: Taxed only on income from Polish sources

Personal Income Tax Rate Schedule

Annual Income (PLN)	Tax Rate
Up to 120,000	17% (- lump sum amount)
Above 120,000	32% on the excess portion
Individual business income	19% flat tax option

• Possible allowances/deductions :
  • Mandatory social security contributions
  • Donations to recognized institutions
  • Certain expenses (Internet costs, education, etc.)
• Rental property income :
  • Flat rate of 8.5% up to 100,000 PLN/year (about €23,000)
  • 12.5% above that
  • No social security contributions on this income for non-residents

Registration and Tax Filing Process

• Tax registration :
  • Assignment of a Polish tax identification number (PESEL or NIP) upon settling in
• Annual tax return :
  • The return must be filed between February 15 and April 30 of the following year
  • Online filing preferred (e-PIT portal)
  • Tax payment through monthly salary withholding or direct payment for self-employed individuals
• Specific obligations :
  • Expatriates must report their arrival/departure to the local tax office
  • Obligation to declare foreign bank accounts if the legal threshold is exceeded

Practical Tips for Tax Compliance

• Check your tax residency status annually to avoid double taxation
• Use official tax simulators or consult a specialized accountant to optimize allowances
• Stay informed about bilateral tax treaties between Poland and your home country
• Register on online tax portals (e-PIT portal, Ministry of Finance services)
• Keep all proof of income, expenses, and tax payments

Useful Resources for Expatriates

• Polish Ministry of Finance tax portal
• Consular services and expatriate associations (UFE, CCI France-Poland)
• Tax advisory firms specializing in assisting foreigners
• Practical guides and FAQs on official and association websites

Key Takeaway: The Polish tax regime is considered simple and competitive, especially for expatriates, thanks to moderate rates, digitized procedures, and a policy favorable to real estate investment.

Understanding Income Tax and Other Important Taxes

Basic Principles of Income Tax in Poland

Personal Income Tax (PIT) in Poland is an individual tax levied on income from employment, pensions, allowances, freelance activities, capital, and copyrights. It is due on income generated in Poland. Polish tax residents are taxed on their worldwide income, while non-residents (expatriates) are taxed only on income from Polish sources.

Tax Rate Schedule and Rates

Annual Income Bracket (PLN)	Tax Rate	Tax Due Calculation
0 to 85,528	18% (- 556 PLN)	18% of income – 556 PLN
> 85,528	14,839 PLN + 32%	14,839 PLN + 32% of income > 85,528 PLN

• There is an option for a single flat rate of 19% for individuals engaged in non-agricultural individual business activities.
• Starting in 2025, an income tax exemption regime is introduced for parents with at least two children, on income up to 140,000 PLN per year.

Possible Deductions and Allowances

• Mandatory social security contributions.
• Donations made to cultural, educational, or religious institutions.
• Expenses related to Internet access.

Residents vs. Expatriates

• Residents (stay >183 days/year): Unlimited taxation on all income, Polish and foreign.
• Expatriates/non-residents: Limited taxation to income generated in Poland (e.g., salaries, rental income).

Other Important Taxes for Expatriates

Type of Tax	Rate/Calculation	Collection Method
Property Tax	Varies by municipality, calculated based on area and property use	Paid annually by the owner
VAT (Value Added Tax)	Standard rate of 23% (possible reduction to 8% or 5% depending on products/services)	Collected by businesses upon sale
Corporate Income Tax	19%	Paid by companies established in Poland
Transportation Tax	Based on vehicle type and engine capacity	Paid locally
Stamp Duties	Fixed amount or proportional based on the document	Paid when formalizing the document

Tax Obligations for Expatriates

• Annual income declaration (generally before April 30 of the following year).
• Payment of tax to the Polish tax authorities according to the methods indicated on the tax assessment.
• Withholding at source on salaries for employees; possible year-end adjustment.

Practical Tips for Tax Planning and Compliance

• Verify your tax residency status (stay >183 days/year or center of economic interest).
• Inquire about the double taxation treaty between your home country and Poland to avoid double taxation.
• Prepare in advance supporting documents for deductions and allowances (donation receipts, Internet bills, social security contribution statements).
• Consult a local tax advisor to optimize your situation and meet filing deadlines.
• For property owners, anticipate property tax payment and inquire about applicable rates in the municipality of acquisition.

Key Takeaway: Polish income tax is progressive and applies differently to residents and expatriates. Compliance relies on good organization and understanding of local obligations, particularly regarding filing and payment, as well as knowledge of deductions and other applicable taxes.

Demystifying Tax Filings for Expatriates

Tax Filing Process for an Expatriate in Poland

The tax filing process in Poland for expatriates is based on the obligation to submit an annual income return, primarily via the PIT form. Taxation depends on tax residency status:

• Tax Resident: Any person with their center of personal or economic interests in Poland, or residing there for more than 183 days per year, is considered a tax resident and must declare all their worldwide income in Poland.
• Non-Resident: Non-resident expatriates declare only income generated in Poland, except in special cases related to documentation of tax residency in another country.

Required Documents

• PIT-11 Form: Provided by the employer by the end of February, it serves as the basis for the declaration.
• PIT-37 Form: To be completed and submitted by the taxpayer.
• PESEL or NIP Number: Essential for generating a tax micro-account and filing the return.
• Proof of Tax Residency: Certificate of residency, particularly for managing double taxation treaties.
• IFT-1R: Document provided to non-residents for income taxed at a flat rate.

Deadlines to Respect

Document / Action	Deadline
PIT-11 Submission	End of February
PIT Return Filing	Before April 30
Payment of Tax Due	Before April 30
Refund of Overpayment	Within 30 days after verification

Available Online Platforms

• podatki.gov.pl: Official site for online filing and management of the tax micro-account.
• Profil Zaufany: Allows access to and digital signing of tax and administrative procedures.

Specific Tax Obligations for Expatriates

Foreign Income: Polish tax residents must declare and tax their worldwide income. The application of double taxation treaties avoids double taxation in Poland and the home country.

Treaty Application: To benefit from the provisions, a certificate of residency must be provided and foreign income mentioned in the return.

Resources and Services Offered by Tax Authorities

• Online Assistance and Physical Counters: Tax offices offer help, especially during the filing period.
• Guides and FAQs on the tax administration website.
• Profil Zaufany to simplify remote procedures.

Practical Tips to Avoid Penalties and Optimize Taxation

• Verify tax residency status upon arrival.
• Gather all documents before the filing period (PIT-11, residency certificates, proof of foreign income).
• Use the tax micro-account for all payments and refunds.
• Strictly respect deadlines to avoid penalties.
• Verify the application of double taxation treaties to optimize taxation on foreign income.
• Keep all proof of filing and payment.

Summary of Main Steps for an Expatriate

1. Determine your tax residency status.
2. Obtain necessary documents (PIT-11, NIP/PESEL, residency certificate).
3. Log in to the official online platform.
4. Complete and submit the PIT return before April 30.
5. Pay the tax due or await the refund of overpayment.
6. In case of foreign income, apply the double taxation treaty and provide supporting documents.

Key Takeaway:

Respect deadlines, keep all supporting documents, and use official platforms for a smooth filing process. If in doubt, seek assistance from tax offices or online resources.

Essential Tips to Optimize Your Taxation in Poland

Legal Means to Reduce Income Tax for Expatriates in Poland

Possible Tax Deductions and Income Optimization

• Mandatory social security contributions deductible from taxable income.
• Donations to cultural, educational, or religious institutions.
• Expenses for Internet access.
• Application of the tax-free amount: each tax resident can deduct up to 30,000 PLN from their taxable income.
• Allocation of the tax allowance among multiple employers possible, optimizing monthly tax management.

Type of Deduction	Amount or Main Condition
Social Security Contributions	Amount paid
Donations (culture, education, worship)	Based on receipts
Internet Expenses	Capped amount per year
General Tax Allowance	30,000 PLN/year

Specific Exemptions and Reductions for Expatriates

• Application of the 19% flat tax regime on capital income (dividends, capital gains, cryptocurrencies).
• Possibility for wealthy expatriates to choose a lump-sum taxation on foreign income, set at 200,000 PLN/year, without detailed declaration obligation, provided they invest at least 100,000 PLN/year in social impact projects in Poland.
• Freelancers and individual entrepreneurs: choice of taxation at a single rate of 19% or a simplified regime for small businesses.

Investments Benefiting from Tax Relief

• Reinvestment of profits in the business: under the Estonian model adopted by Poland, taxation occurs only upon profit distribution. Undistributed profits remain exempt, favoring capitalization.
• Investments in R&D activities or social projects, qualifying for specific credits or reductions.

Type of Investment	Tax Advantage
Profit Reinvestment	No taxation as long as not distributed
R&D or Social Projects	Reductions/credits based on eligibility

Importance of Advance Tax Planning

• Adapt the structure of your income (salary, dividends, capital) to maximize the application of allowances and choose the most suitable tax regime.
• Anticipate changes in tax residency, monitoring the 183-day threshold and considering the unlimited tax obligation on worldwide income.

Use of International Tax Treaties

• Check for a tax treaty between Poland and your home country to avoid double taxation.
• Apply the credit or exemption mechanisms provided by these treaties to optimize taxation on foreign-source income.

Advantageous Tax Regimes Offered by Poland

• 19% flat tax on capital.
• Deferred taxation of business profits.
• Option for lump-sum taxation on foreign income for new wealthy residents.

Practical Tips for Navigating the Polish Tax System

• Maintain rigorous accounting of all deductible expenses and donations.
• Systematically declare all worldwide income to avoid adjustments.
• Seek assistance from a local tax advisor familiar with expatriate specifics.
• Use official simulation and online filing tools offered by the Polish tax administration.
• Avoid common errors such as misinterpreting tax residency, non-declaration of foreign income, or forgetting to apply bilateral treaties.

Proactive tax planning, use of international treaties, and selection of suitable regimes allow for legal and significant reduction of income tax for expatriates in Poland.