Tax residency in Poland: what business owners need to know when moving

Changing tax residency in Poland requires an actual shift in personal or economic ties. Moving abroad, changing an address or obtaining a foreign tax residence certificate is not sufficient on its own. Business owners should also assess the taxation of their business, permanent establishment exposure, exit tax and social security implications.

When does a business owner change tax residency in Poland?

Under the Polish Personal Income Tax (PIT) Act, an individual is regarded as resident in Poland if they:

• have their centre of personal or economic interests in Poland; or
• stay in Poland for more than 183 days in a tax year.

These criteria are independent. Spending most of the year abroad does not automatically mean that Polish tax residency has ended.

Relevant factors include where the family lives, main sources of income, investments, assets, bank accounts and where the business is actually conducted and managed.

Does changing tax residency move the business abroad?

No. The owner’s personal tax residency and the taxation of the business must be assessed separately.

A business owner may lose Polish tax residency while some business income remains taxable in Poland. This may apply where an office, employees, technical facilities or another place through which the business operates remains in Poland.

The applicable Double Taxation Agreement (DTA) should also be analysed, particularly to determine whether a permanent establishment exists.

What if a foreign business owner moves to Poland?

A foreign entrepreneur, shareholder or management board member may become a Polish tax resident if they transfer their centre of personal or economic interests to Poland or stay here for more than 183 days.

As a rule, Polish residents are subject to tax on income regardless of where it is earned, subject to the relevant international tax treaty.

The tax position of a foreign company should be analysed separately. If its current affairs are managed from Poland in an organised and continuous manner, an assessment under the Polish Corporate Income Tax (CIT) Act may also be required.

How can a change of tax residency be documented?

Documentation should confirm the actual circumstances. Relevant evidence may include:

• a foreign tax residence certificate,
• a tenancy agreement or proof of property ownership,
• local tax returns,
• insurance documentation,
• utility bills,
• records of days spent in each country,
• evidence showing where contracts, meetings and business decisions take place.

A foreign residence certificate may support the analysis but does not determine tax residency on its own.

What additional risks should business owners consider?

Regular work by an owner, manager or employee from another country may create a permanent establishment there. The 2025 update to the OECD Model Tax Convention provides more detailed guidance on cross-border home working.

Tax residency must also be distinguished from social security. Changing tax residency does not automatically change the applicable social security system.

Business owners should also review potential exit tax before relocating. For individuals, Polish exit tax provisions do not apply where the total market value of the covered assets does not exceed PLN 4 million.

How should a business owner prepare for relocation?

Before moving, determine the actual relocation date, map personal and economic connections and review the applicable tax treaty.

The owner’s position should be separated from that of the company, while permanent establishment exposure, exit tax and social security consequences should be assessed independently.

For anyone doing business in Poland or moving business activities between countries, the actual facts are more important than a new address, business registration or individual certificate.

Read the full article here: Tax residency in Poland: what business owners need to know when moving.