Free online invoicing software
with KSeF support
More people are working abroad, operating in different countries or relocating. A crucial question then arises: where should taxes be paid? The answer depends on tax residence. Changing residence during the year may require settlements in two countries, while incorrectly determining status can have serious financial consequences. We explain when residence changes, how to interpret Polish rules and what deserves attention in dealings with the tax office.
What is tax residence and why does it matter?
Tax residence determines the country in which an individual should settle income tax. Under Polish law, two criteria are decisive: having a centre of vital interests, personal or economic, in Poland, or spending more than 183 days there during a tax year. Meeting either criterion makes someone a Polish tax resident, subject to unlimited tax liability on all income, including foreign income. Otherwise, only limited tax liability applies to income earned in Poland.
Subscribe to our newsletter
Leave your email address and receive guides supporting your business’s growth once a week
How can a change of tax residence be recognised?
A single form or declaration does not formally change residence. It is a factual process resulting from changed life circumstances, usually a permanent relocation of home, work or business abroad. Someone permanently moving to another country, closing a Polish business, renting or selling their home and transferring their personal and professional centre abroad may have changed residence. Conversely, spending over 183 days in a country may itself be enough to change tax status, even without formal address registration.
Must a change of residence be reported to the tax office?
Polish law has no formal notification procedure for changing tax residence. Tax authorities issue no decision on it; status is determined from the facts. The only obtainable document is a tax residence certificate confirming domicile for tax purposes, issued on request and only to confirm Polish residence. In practice, a taxpayer should document the circumstances of the change, for example with lease agreements, employment evidence, proof of address, tax identification numbers, termination of Polish business activity, bank account closures or asset disposals.
What does a change during the year mean?
Residence may change during a tax year. The taxpayer then settles part of the year as a Polish resident, under unlimited tax liability, and after moving their centre of vital interests abroad as a non-resident, paying Polish tax only on Polish-source income. This requires a PIT return proportionately covering both periods and a PIT/ZG attachment for foreign income. Polish citizenship is not decisive; actual domicile and the centre of vital interests matter.
What if there is dual tax residence?
Someone may be considered resident in two countries simultaneously under their respective laws. Tie-breaker rules in double taxation treaties then decide. First, determine where the person has a permanent home, then where personal and economic ties are stronger. If this remains inconclusive, consider habitual abode and nationality; ultimately, the tax administrations may resolve the matter through a mutual agreement procedure, or MAP.
If you found this article interesting, explore our tax advisory services and read how we can help you:
Our specialists can help you put this knowledge into practice.
Summary
Changing tax residence is not merely a formality but a process requiring real changes in personal and professional life. To avoid issues with tax authorities in Poland and abroad, document your new home, settle tax obligations and prepare the appropriate returns. This matters particularly to business owners, investors and people living at the intersection of tax jurisdictions.
If you are considering a change or unsure of your status, contact the TaxCoach accounting firm. We will analyse your circumstances, prepare necessary documents and handle settlements comprehensively and safely.
Interested in this article?
Enter your email address and once a week you will receive practical materials and tips to help you grow your business.
Book a free consultation
Grow your business with accounting combined with advisory services:
or
