Returning to Poland: remote work for a foreign employer and B2B – a complete guide for those returning from emigration (Part 5)

Returning to Poland doesn’t have to mean changing your employer or clients. More and more often, it looks like this: you move back, but you still work remotely for a foreign employer — or you continue in a B2B model for a company outside Poland. The same applies to business owners who relocate but keep serving international contracts or manage operations from Poland. From a tax and social security standpoint, this is a real shift. In practice, payroll Poland and tax obligations are driven not only by what your contract says, but primarily by where you actually work and where you have your centre of vital interests.

This final article in the “Returning to Poland” series focuses on practical consequences when you come back but keep working internationally — (1) as an employee, (2) under B2B contracts, and (3) as a business owner performing part of your activities from Poland.

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The key rule: work performed in Poland changes your settlement position

If after moving you perform work physically from Poland (even if the company is abroad and salary is paid into a foreign bank account), the likelihood increases that:

• your Personal Income Tax (PIT) will be settled in Poland (fully or partially, depending on treaty rules and how your year unfolds),
• you may need to calculate and pay PIT advances yourself if your employer/contracting party does not act as a Polish remitter,
• Social Insurance Institution (ZUS) contributions and the health insurance contribution may become mandatory in Poland – especially if most work is performed from Poland or you don’t have a valid A1 certificate keeping you insured elsewhere.

In practice, the biggest risks appear when the formal setup (foreign employer, payroll abroad) does not match operational reality — because you are actually working from Poland. This is exactly where payroll Poland and tax exposure can shift quickly.

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Remote employment vs B2B for a foreign entity: what differs in practice?

Below is a practical comparison that helps align responsibilities:

Area	Employment contract (foreign employer)	B2B cooperation
PIT advances during the year	Most often the employee calculates and pays advances themselves if the foreign employer is not a Polish remitter	The entrepreneur pays advances (monthly or quarterly — depending on eligibility and election)
Annual tax return (most common)	Typically PIT-36 (when there is no Polish remitter) + foreign income annexes if required	PIT-36 (tax scale / flat tax) or PIT-28 (lump-sum) depending on the chosen regime
ZUS and health insurance	Depends on which social security system applies (Poland vs another country), often determined under EU coordination rules	As a rule, ZUS + health insurance in Poland, with exceptions (e.g., multi-country work supported by A1)
Most common risks	No PIT advances in Poland; double withholding abroad and in Poland; unstructured insurance position (e.g., missing A1)	Suboptimal tax regime choice; incorrect health contribution base and annual reconciliation; risk of B2B being challenged if it resembles employment

There is no one-size-fits-all option. Your model should reflect how the cooperation works in reality — scope of responsibility, level of control/subordination, how work is organised, and where and when services are performed — not only the nominal tax burden.

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Returning as a business owner: additional areas to review

If you return to Poland as a business owner (in Poland or abroad) and after relocating you perform part of your work or management from Poland, you should look beyond personal PIT and contributions and check whether the company’s operating model is still consistent. In practice, it matters, for example:

• where key activities are actually performed (management, sales, service delivery, team supervision),
• whether your post-move setup changes the business-side compliance footprint (including taxes, payroll Poland processes for people engaged, or documenting where work is performed),
• whether your documentation (contracts, scope, evidence of performance) reflects the real cross-border workflow.

In more complex cases (e.g., a foreign company managed from Poland, or work in multiple countries), reviewing your position before the annual return typically reduces the risk of corrections and disputes.

If your return affects how work or management is carried out from Poland, consider professional support to structure assumptions and documentation — especially for cross-border settlements and payroll operations. Contact us.

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PIT advances: how it works after relocating to Poland

1) When the employer/contracting party acts as a remitter in Poland

If the foreign entity has a structure or arrangement in Poland that allows it to act as a remitter (e.g., it runs salary settlements in Poland under an appropriate organisational model), PIT advances are withheld similarly to a Polish employer.

2) When the employer is abroad and there is no Polish remitter — the taxpayer pays advances

In many cases after returning to Poland, it’s the employee (or contractor under a civil-law agreement), not the foreign company, who takes over paying PIT advances.

Key consequences:

• advances are paid without a call from the tax office,
• you must calculate income and tax yourself under the applicable rules (most often the progressive scale),
• you must meet deadlines and pay to the correct tax office.

This is where one of the most expensive mistakes happens: no advances in Poland for many months, followed by a one-off settlement in the annual return — plus interest.

3) B2B model — advances are standard (monthly or quarterly)

In B2B, PIT advances are part of ongoing tax compliance: you choose a taxation method, calculate the base, pay advances, and then settle the year. In cross-border B2B, consistency is critical — what is in the contract must match what happens in real life (place of performance, stability of cooperation, business risk).

Practical tip: if you return to Poland mid-year, it’s usually best to structure PIT advances and contributions from the first full month after relocation. This helps maintain continuity and avoids having to correct arrears later.

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Social security and health insurance after relocation: the most common risk areas

Risk 1: assuming ZUS doesn’t apply because the employer is abroad

In social security, the key question is which country’s system applies. Within the EU/EEA/Switzerland, you are generally insured in one country only — but which one depends on where you work and whether you work in one or multiple countries.

If you work mainly from Poland, this often means you should be insured in Poland. In that case, the foreign employer may face registration duties as a foreign remitter — something you shouldn’t leave until year-end.

Risk 2: part of the work in Poland, part abroad

If you work in two countries (e.g., a few days per month in the employer’s country and the rest from Poland), the assessment follows multi-country coordination rules. In practice, what often decides the outcome:

• working time proportions and the nature of activities,
• the A1 certificate (if applicable),
• additional arrangements/exceptions used for cross-border telework (under specific conditions).

Without correctly determining the applicable legislation, you may pay contributions in the wrong country — or in none — leading to corrections and arrears.

Risk 3: B2B health contribution—incorrect assumptions on the base and annual settlement

In B2B, the health insurance contribution depends on the chosen tax regime and whether the basis is income or revenue (depending on that regime). There is also an annual reconciliation mechanism, meaning that even if you pay monthly, an additional amount may be due after year-end.

Risk typically increases when you:

• change the tax regime,
• have irregular income,
• combine B2B with employment (in Poland or abroad),
• have a relocation year where tax residency or income sources change during the year.

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Mixed year: how to approach settlement when you relocate mid-year

The relocation year rarely fits into one simple pattern. Most often, one of these scenarios applies:

1. until the relocation date you live and work abroad, then you work from Poland for the same employer,
2. part of the work is performed physically in Poland and part in another country (e.g., business trips, commuting, rotational work),
3. you change your model during the year: employment → B2B or B2B → employment.

To settle a mixed year in a structured and safer way:

• prepare a timeline (presence dates, relocation date, periods of work performed in Poland vs abroad),
• allocate income to specific periods and places of work,
• only then choose the correct double tax treaty method (under the relevant treaty),
• verify consistency between tax and social security positions — taxation country is not always the same as the social security country, and vice versa.

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Documents and evidence: what to prepare for a defensible settlement

In cross-border settlements, correct calculations matter — but so does documentation that supports your assumptions (work location, tax residency, tax withheld abroad, etc.). The exact set depends on your case, but it is usually worth collecting at least:

• your contract (employment or B2B) and annexes, especially those covering work location and remote work terms,
• a record of presence and travel days (e.g., calendar) with confirmations: tickets, bookings, travel and accommodation proofs,
• payslips, payroll settlements, and transfer confirmations,
• information on tax withheld abroad (if any),
• tax residency certificate (if required in your cross-border relationship) and correspondence with the employer/entity paying remuneration,
• social security documents, including A1 (if applicable),
• evidence supporting your centre of vital interests in Poland (e.g., lease/title deed, children’s schooling, registrations, utility bills) — especially if tax residency could be questioned,
• if you are a business owner: evidence of how the business operates after relocation (contracts, scope of services, proof of performance, arrangements on where services are delivered and how work is organised).

The more complex the relocation year (multi-country work, switching models), the more important consistency and completeness become — especially where payroll Poland obligations can follow the actual place of work.

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When a pre-return review before the annual PIT filing is worth it

A review before filing PIT is particularly useful if at least one of these applies:

• you work for a foreign employer and pay PIT advances yourself (or you’re unsure whether you should),
• the foreign employer withholds tax despite you working from Poland,
• you work in two countries,
• you changed your cooperation model during the year,
• you are unsure about A1 and which social security system applies,
• you combine multiple insurance titles (employment + business activity),
• you want to settle the relocation year without “surprises” in the final tax due,
• you are a business owner and after relocating you manage or perform part of the business from Poland and you are unsure whether this changes the company’s settlement duties.

When cross-border cooperation is involved, the tax side and payroll Poland processes should be handled consistently — this is often the simplest way to avoid last-minute corrections and unexpected top-ups.

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If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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