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

Changing tax residency in Poland requires an actual change 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 must also assess where the business is conducted, permanent establishment exposure, exit tax and social security implications.

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When does tax residency in Poland change?

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 are independent criteria. Spending no more than 183 days in Poland therefore does not automatically end Polish tax residency if the individual’s centre of vital interests remains here.

Relevant factors include where the family lives, main sources of income, investments and assets, where the business is conducted and where important commercial decisions are made.

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Does changing the owner’s residency move the business abroad?

No. Personal tax residency and the taxation of the business must be assessed separately.

A business owner who moves abroad but retains an office, employees, technical facilities or another fixed place through which the business is conducted in Poland may still have income taxable in Poland.

The applicable Double Taxation Agreement (DTA) must also be reviewed to determine whether a permanent establishment exists and how the relevant income should be taxed.

What if a foreign business owner moves to Poland?

A foreign entrepreneur, shareholder or management board member may become a Polish tax resident by transferring their centre of personal or economic interests to Poland or staying 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 applicable tax treaty.

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Can managing a foreign company from Poland have tax consequences?

Yes. The owner’s tax residency and the company’s tax residency are separate issues.

However, under the Polish Corporate Income Tax (CIT) Act, a taxpayer may be regarded as having management in Poland where its current affairs are conducted here in an organised and continuous manner.

Regular management of a foreign company from Poland may therefore require a separate assessment under Polish CIT rules and the applicable international treaty.

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How can a change of tax residency be documented?

Evidence should reflect the taxpayer’s actual circumstances. Relevant documents may include:

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

A residence certificate can be important evidence, but it does not replace an assessment of the actual facts.

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What other risks should business owners consider?

Regular work from another country may create permanent establishment exposure. The 2025 update to the OECD Model Tax Convention provides more detailed guidance for cross-border home working, including the relevance of how much working time is spent at the foreign location.

Tax residency must also be distinguished from social security. A change of tax residency does not automatically remove an individual from the Polish social insurance system.

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

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How should a business owner prepare for relocation?

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

The owner’s position should be separated from that of the business, while permanent establishment exposure, exit tax, social security and supporting documentation should be analysed independently.

Tax residency in Poland follows the actual circumstances rather than a single registration, certificate or form.

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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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