The tax relief aims to encourage individuals to relocate to Poland by providing an income tax exemption for four consecutive years. Taxpayers can save a significant amount of money, as the exemption applies to income from employment, service contracts, and business activities up to PLN 85,528 per year.
What is the Tax Relief in 2025?
The relief consists of an exemption from personal income tax on certain income earned over four consecutive tax years by taxpayers who have transferred their place of residence to the territory of Poland after December 31, 2021.
Who is Eligible for the Relief?
A taxpayer may benefit from the relief if they:
- As a result of transferring their place of residence to Poland after December 31, 2021, become subject to unlimited tax liability in Poland; and
- Did not have a place of residence in Poland in the period:
- Of three calendar years immediately preceding the year of return, and
- From the beginning of the year until the day before they returned to Poland; and
- Hold Polish citizenship, a Pole’s Card (Karta Polaka), or citizenship of another European Union Member State, a European Economic Area (EEA) country, or the Swiss Confederation; or have had an uninterrupted place of residence:
- For at least three years in an EU Member State, an EEA country, the Swiss Confederation, Australia, the Republic of Chile, the State of Israel, Japan, Canada, the United Mexican States, New Zealand, the Republic of Korea, the United Kingdom of Great Britain and Northern Ireland, or the United States of America;
- In Poland for at least five calendar years preceding the three-year period; and
- Possess a certificate of residence or another document proving their place of residence for tax purposes during the period necessary to determine eligibility for this exemption; and
- Have not previously, in whole or in part, benefited from this exemption if they are transferring their place of residence to Poland again.
What Types of Income are Covered by the Relief?
The exemption applies to income derived from:
- Employment contracts (employment relationship, official duties, home-based work, cooperative employment relationship);
- Service contracts (umowa zlecenia) concluded with a company;
- Maternity benefits;
- Business activity taxed under the progressive tax scale, the 19% flat tax, the 5% IP Box relief, or lump-sum taxation on recorded revenue;
- Earned over four consecutive tax years.
From When Can the Relief be Applied?
The relief can be applied:
- From the beginning of the year in which the taxpayer relocated to Poland, or
- From the beginning of the following year.
What Types of Income are Not Covered by the Relief?
The relief does not cover, among others, income from:
- Cash benefits from social insurance, except for maternity benefits (e.g., it does not cover sickness benefits);
- Contracts for specific work (umowa o dzieło);
- Copyrights (except those obtained under an employment contract);
- Income subject to a lump-sum income tax under the Personal Income Tax Act;
- Income exempt from personal income tax under other provisions (e.g., travel allowances, compensations for random personal events, or long-term illnesses paid from the Company Social Benefits Fund);
- Income for which tax collection was waived under a regulation.
What is the Exemption Limit?
The income exempt from taxation cannot exceed PLN 85,528 per tax year.
Important: The total amount of tax-exempt income under PIT-0 (including the return relief, young persons’ relief, large family relief (4+), and senior workers’ relief) cannot exceed PLN 85,528 per year. If this limit is exceeded, the taxpayer may apply the tax-free amount of PLN 30,000 to income subject to taxation under the progressive tax scale.
When Can the Relief Be Applied? The relief may be applied during the tax year, but the final settlement must be made in the annual tax return. If the taxpayer is responsible for calculating their advance tax payments or tax due on:
- Foreign income from employment or service contracts concluded with a company;
- Income from business activity, They must apply the relief themselves by excluding the eligible income from taxable income.
Important! If the taxpayer earns income from employment or service contracts concluded with a company, they must submit a written statement to their employer or principal for the relief to be applied. There is no official template for this statement (it can be self-drafted or follow a sample form available in the guide). The statement should be in writing and must confirm that the taxpayer meets the conditions for the relief, specifying the start and end year of the exemption period.
Important! If the taxpayer ceases to meet the conditions for the relief (e.g., works at multiple employers, and their total income exceeds the relief limit), they must inform their employer or principal. Upon receiving such information, the employer will cease applying the relief no later than the following month.
Explanations and Legal Basis [1]
This refers to income from service contracts (umowa zlecenia) as defined in Article 13(8) of the Personal Income Tax Act, meaning services performed under a service contract exclusively for: a) A natural person conducting business activity, a legal person, or an organizational unit without legal personality; b) The owner (or possessor) of real estate in which premises are rented, or a manager or administrator acting on their behalf—if the taxpayer performs these services solely for purposes related to that real estate; c) An inherited enterprise—except for income obtained under contracts entered into as part of the taxpayer’s independent business activity or under management contracts or similar agreements.
Is a Certificate of Residence Required to Document a Foreign Place of Residence?
No, a certificate of residence is not mandatory. Other documents proving residency in another country will suffice, such as an employment contract or a rental agreement abroad. If these documents are in a foreign language, the tax office may request a translation into Polish.
I Meet the Conditions for the Return Relief and Will Earn Income from Employment in Poland. Should I Submit a Statement to My Employer? Yes. If you wish for your employer to apply the return relief, you must submit a written statement confirming that you meet the conditions for the exemption.
Why Must the Statement Specify the Start and End Year of the Exemption?
The statement must indicate the years in which the employer will apply the exemption because the taxpayer selects the starting year of the relief. The taxpayer can choose for the exemption to apply:
- From the beginning of the year in which they relocated to Poland, or
- From the beginning of the following year. The taxpayer independently selects the most advantageous option. The employer applies the exemption no later than the month following the month in which the statement was received, and no longer than the indicated period.
