A foreigner's tax residency (rezydencja podatkowa) depends on two tests: staying longer than 183 days in a tax year, or having the center of vital interests in Poland. The status decides whether the employer calculates the advance using the tax scale, or, for a mandate or specific-work contract without a certificate, withholds a 20% flat-rate tax as for a non-resident.

When does a foreigner's tax residency arise

A person becomes a Polish tax resident when either of two conditions is met:

  • stay longer than 183 days in Poland in a tax year,
  • center of vital interests in Poland: family, apartment, main source of income.

Days of stay are counted cumulatively over the whole tax year. They do not have to run consecutively. What counts is actual presence in Poland, including the day of arrival and departure, and the count starts over in every following tax year.

The second test works independently of the calendar. A person who has brought their family over and rented an apartment may have the center of vital interests in Poland from the first month, without waiting for day 183 of the stay.

Resident or non-resident: the difference in settlement

Status decides four things: which income is taxed, how the advance from an employment contract is calculated, how a mandate or specific-work contract without a residency certificate is settled, and which annual document the employer issues.

FeatureResidentNon-resident
Scope of taxed incomeall income, regardless of the country earned inonly income earned in Poland
Advance from an employment contractaccording to the tax scaleaccording to the same tax scale
Tax on a mandate/specific-work contract without a certificateaccording to the tax scale20% flat rate on revenue, without deductible costs
Tax-free amount and thresholds (2026)PLN 30,000 annual tax-free amount, 12% up to PLN 120,000, PLN 10,800 + 32% on the surplusthe same thresholds, but only for income taxed in Poland
Annual documentPIT-11 from the employerPIT-11 (employment income) or IFT-1/IFT-1R (flat rate from a mandate/specific-work contract)

A change of status can therefore either raise or lower the payout, depending on the contract type and earnings level. The mechanism of converting gross to net pay itself is described in the text on calculating net and gross pay.

What happens without a residency certificate

Under a mandate contract and a specific-work contract, the employer as payer withholds from the pay of a non-resident who has not presented a residency certificate a flat-rate withholding tax (podatek u źródła) of 20% of revenue, without deducting costs. The advance on pay from an employment contract is calculated according to the tax scale. For a non-resident this is limited to income from work performed in Poland. After presenting a certificate from the country of residence, the employer applies the rules of the relevant double taxation treaty instead of the flat rate. The employer issues the annual information on the tax withheld on form IFT-1/IFT-1R.

Change of status during the year

Residency is assessed for the whole tax year, but the employer must withhold advances on an ongoing basis, and does so based on what it knows in a given month. Hence the situation where, for the first few months, deductions are calculated as for a non-resident, and then change to resident rules.

If you turn out to be a Polish resident for the whole year, the amounts withheld during the year are settled by the annual tax return, and the result may be a refund or a payment due. The flat-rate tax withheld from a non-resident who did not become a resident is shown on form IFT-1/IFT-1R. The tax office will confirm the details of your situation.

When income comes from two countries, it is the double taxation treaty that decides, not domestic law alone. It determines where a given category of income is taxed. The annual settlement for a foreigner who worked for several employers is described in the text on PIT-11 and a foreigner's annual settlement.

What to do on your side

The employer will not guess that you have brought your family over or rented an apartment permanently, and these are the circumstances that determine the center of vital interests. Inform the payroll department about them and ask whether a residency certificate from your home country is needed. Reporting it during the year tends to be more favorable than settling only in the annual return.

Frequently asked questions

Does the 20% flat rate apply to every foreigner without a PESEL number?

No. The flat rate applies to non-residents without a residency certificate, and only to revenue from a mandate or specific-work contract. It does not depend on having a PESEL number. Pay from an employment contract is settled according to the tax scale regardless of PESEL.

Does a declaration of tax residency have to be submitted to the employer?

Regulations do not impose one official template for such a declaration. The employer may ask for written information about the place of residence for tax purposes, and from a non-resident, for a residency certificate, which allows applying the double taxation treaty instead of the flat rate.

Is residency determined anew in every tax year?

Yes, it is assessed for the whole tax year, not once and for all. During the year the employer calculates advances based on what it knows in a given month, so it is worth informing them when your situation changes.

How does a double taxation treaty change the settlement of the advance?

When an employee has income from two countries, it is the treaty that decides in which of them a given category of income is taxed. Domestic law alone does not determine this. A residency certificate allows the employer to apply its rules instead of the flat-rate withholding tax.

This text is for information only and describes general regulations. It is not tax or legal advice.
This text describes the general rules. What you are entitled to depends on your type of contract: an employment contract (umowa o pracę) or a contract of mandate (umowa zlecenie). Your own contract and payslip are what count.