With people going through the process of obtaining Polish dual citizenship, we are often asked questions about how tax liability works in Poland and if they will need to pay taxes in Poland as a dual citizen.
Let’s start with some good news for dual citizens in Poland. There are tax treaties in place to prevent double taxation—depending on the other country you are a citizen of. As long as you are not working and legally residing in Poland for over 183 days out of the year, you will NOT need to file income taxes in Poland.
Read this guide to learn more about tax liability with Poland.
Do I Owe Taxes to Poland?
If you do not worked in Poland and do not live in Poland for 183 days or more a year, you do NOT need to file taxes in Poland. If your vital interests are located in Poland, you also owe taxes.
That means you’ll owe taxes on money no matter where it came from (even if you were paid by foreign companies or clients).
We’ll go into how you calculate what you owe on your income, but first, let’s see if you can avoid double taxation.
Polish Tax Treaties Prevent Double Taxation
The entire point behind tax treaties is that they prevent you from paying double taxes on the money you make. And if you are a dual citizen of Poland, you’re in luck: the country has signed 90 tax treaties. That includes the U.S.-Poland Double Taxation Agreement (1989).
Between Poland and the US, it works using two methods:
- Exemption Method: You don’t owe US taxes on income tax you paid to Poland. But while you don’t owe taxes directly, it will be factored into the tax rate for your US income. That means some of your US income might be taxed in a higher tax bracket.
- Credit Method: Here, the taxes you paid in Poland are deducted from your US tax obligations, so you don’t double-pay.\
The US also requires that you file a Foreign Bank Account Report (FBAR) if your foreign-held financial accounts exceed $10,000 in value. The IRS also needs you to report all your global income—even if you don’t have to pay US taxes on it.
These methods and rules laid out in tax treaties are the way you avoid overpaying. So, if you feel ill-equipped to apply these to your income for last year, it is often well worth hiring a tax professional to work through the treaty rules with you. It could literally cut your tax bill in half.
Polish Income Tax
So, now it’s time to figure out just how much you would owe in Polish taxes.
Income tax is applied to anyone who lived 183 or more days in Poland during the year. And you pay taxes on any and all income you make.
(If you aren’t a non-resident, you only pay Polish taxes on income from Polish sources. In that case, learn how to become a Polish citizen.)
Polish Income Tax Rate
So, how much will you actually owe on your income? That depends:
- Up to PLN 30,000: No tax.
- PLN 30,000–120,000: 12%.
- Over PLN 120,000: 32%.
- A flat 19% rate applies to civil contracts but adjusts under the progressive scale at year-end.
As with all tax brackets, it’s important to note that you don’t pay your highest rate on all of your money. Instead, you owe no money on your first PLN 30,000. Then, the next 90,000 will be taxed at 12%. And anything you earn above 120,000 will be taxed at 32%.
Employees almost always file with PIT-11 forms. These are provided by your employer. This shows your income and the taxes you’ve paid. For the typical Polish employee, your employer has already withheld taxes throughout the year—meaning you usually won’t owe anything at tax time. If you are a dual citizen who has spent the year in Poland, then you likely won’t owe anything to the US.
Other Common Polish Taxes
While income tax is one most people have to pay, there are three other highly common tax situations to consider, one of which is one that you’ve likely already paid.
- Value-Added Tax (VAT): This applies to the sale of goods and services, imports, and exports (even to and from other EU countries). The standard rate is 23%, with reduced rates of 8%, 5%, or even 0% due to carve-outs for specific goods and services.
- Civil Law Transactions Tax (TCLC): This tax specifically targets large property purchases. This 2% tax applies to transactions like property purchases or loans, vehicles, and company shares. If you had to pay VAT on any of these purchases, they are exempted from TCLC.
- Corporate Income Tax (CIT): If you own a company or foundation, your income will fall under this rate. This 19% tax can be reduced to 9%. Nonprofits that contribute to science or do a social good are generally exempt.
- Social Security and Healthcare: If you are an employee, these are deducted from your regular paycheck, so you typically don’t need to pay these at the end of the year.
Filing Your Polish Taxes
Your PIT declarations are due on April 30 every year—so that’s the big day to have everything read.
That means you’ll need to have all the above calculated and ready to pay by then.
Filing options include online systems (available in English and Polish), mail, or in-person.
Polish Dual Citizenship at Tax Time
The tax situation for dual citizens can be confusing, but it doesn’t have to be. Knowing what you’ll owe ahead of time helps you keep things straight throughout the year.
As a dual citizen, the most important part has got to be educating yourself on the relevant tax treaty. This is the single best way to avoid overpaying.
For more information on Polish dual citizenship, remember to check out our other resources here.
Disclaimer: This article provides general information and should not be considered legal or tax advice. Given the ever-changing nature of tax laws, it is crucial to consult a qualified lawyer or tax professional to determine the best approach for your specific situation.
This page was last updated with help by Marco Permunian
