Polish Deal – changes for those who move their tax residence to Poland

by Anna Rucińska

31 August 2021

Taxpayers who choose this method of taxation will have to pay a flat tax of 200 thousand zloty per year on income earned from sources located abroad, irrespective of the amount of that income.

The availability of the flat rate tax on income earned abroad will require the fulfilment of certain conditions. One of them is spending at least 100 thousand zloty annually on business growth, development of science and education, protection of cultural heritage or promotion of physical culture.

Income earned in Poland will be taxed as usual.

Relief for homecoming

A relief for homecoming is planned for persons who have been living and working abroad for at least 3 years and now switch tax residence to Poland.

The relief will be available for 4 years. In the first year the relief will allow the homecoming taxpayer to deduct 50% of the tax due for the base year selected by that taxpayer (i.e. the year in which he/she changes the tax residence or the following tax year). In the second year it will be 50% of the tax due for the first year of enjoying the relief.

Certain social security preferences are also planned for those who return to Poland.