How Is Income Taxed in Poland for Foreigners?

If you're planning to work in Poland or are already employed there as a foreign national, understanding the Polish income tax system is essential for managing your finances and staying compliant with local laws. Poland’s tax system is regulated by the Personal Income Tax Act (PIT) and applies to both Polish citizens and foreigners, though certain conditions determine how and where income is taxed.

In this article, we’ll break down how income tax works in Poland for foreigners, including tax residency, applicable rates, deductions, and obligations.

1. Tax Residency Status in Poland

Your tax residency status is the most important factor that determines how your income will be taxed in Poland.

Who is considered a Polish tax resident?

According to Polish tax law, you are considered a tax resident in Poland if you meet either of the following conditions:

• You spend more than 183 days in Poland in a calendar year.
• You have a center of personal or economic interest (commonly known as a "center of vital interests") in Poland.

If you meet either of these criteria, you are subject to unlimited tax liability, meaning you must pay tax in Poland on your worldwide income.

If you do not meet these conditions, you are considered a non-resident and are subject to limited tax liability, meaning you are taxed only on income earned in Poland.

2. Income Tax Rates in Poland (as of 2025)

Poland uses a progressive tax system for individuals.

For tax residents:

• 12% on annual income up to 120,000 PLN
• 32% on annual income exceeding 120,000 PLN

There is also a tax-free allowance (kwota wolna od podatku), which as of 2025, is 30,000 PLN per year. This means that income below this amount is not taxed.

For non-residents:

Non-residents are usually taxed at flat rates, depending on the type of income and applicable tax treaties. For employment income, the same progressive rates (12% and 32%) often apply unless a double taxation agreement (DTA) provides otherwise.

3. Social Security Contributions (ZUS)

In addition to income tax, employees and employers in Poland are required to pay social security contributions to ZUS (Zakład Ubezpieczeń Społecznych). These cover:

• Pension insurance
• Disability insurance
• Sickness insurance
• Accident insurance
• Health insurance (NFZ)

These contributions are shared between the employer and employee and are automatically deducted from your gross salary.

Approximate total social contributions:

• Employee’s share: around 13.71% of gross salary
• Employer’s share: around 20.48%

These contributions are mandatory for most foreign workers unless you are covered by a social security agreement between Poland and your home country (e.g., within the EU, EEA, or countries with bilateral agreements).

4. Double Taxation Agreements (DTAs)

Poland has signed over 90 double taxation agreements (DTAs) with countries around the world. These agreements prevent you from being taxed twice on the same income — once in Poland and once in your home country.

If a DTA exists between Poland and your country of residence, it will typically define:

• Where your income is taxed
• Which country has taxing rights over certain types of income
• Whether tax credits or exemptions apply

It’s crucial to check the specific agreement between Poland and your home country to determine how your income is treated.

5. Tax Filing Obligations

As a foreign worker in Poland, you must comply with annual tax reporting rules.

When to file:

• The tax year in Poland runs from January 1 to December 31.
• Tax returns must be submitted between February 15 and April 30 of the following year.

Required tax form:

• Most employees use PIT-37, especially if income is only from employment or civil contracts.
• If you have other types of income (business, rental, capital gains), you may need to file PIT-36 or other specific forms.

Your employer should provide a PIT-11 form by the end of February each year, summarizing your earnings and tax contributions, which you'll use to file your return.

6. Tax Identification Number (NIP or PESEL)

To pay taxes in Poland, you need a tax identification number. There are two options:

• PESEL: Assigned to residents for administrative and identification purposes (e.g., long-term visa or permanent stay)
• NIP: Assigned for tax purposes if you are not eligible for a PESEL number

Your employer usually helps with this process when you start working.

7. Special Tax Regimes and Reliefs for Foreigners

Polish Tax Relief for New Residents:

Foreigners who relocate to Poland and become tax residents may benefit from “relief for returning taxpayers” if certain conditions are met. This can include partial exemption from income tax for a few years.

50% Tax-Deductible Costs for Creative Professions:

If you work in a creative or intellectual profession (e.g., IT, research, media), you may be eligible for a 50% tax-deductible cost regime.

Check with a tax advisor or HR department to see if you qualify.

Final Thoughts

Poland’s tax system can seem complex, especially for foreigners unfamiliar with local regulations. The key is to determine your tax residency, understand your tax rate, be aware of social contributions, and know whether a double taxation treaty applies to your income.

While employers usually handle withholding and remitting your taxes, it’s your responsibility to ensure you’re compliant, especially if you have income from multiple sources.

If you’re unsure about your status or tax obligations, consult a qualified tax advisor familiar with international and Polish tax law.