Hiring employees from Poland: What foreign employers need to know

For several years now, hiring employees from Poland has become one of the most natural directions of development for foreign companies that want to build dispersed, international teams. The globalisation of remote work has led companies in Germany, the Netherlands, Austria, Scandinavia, the United Kingdom and the United States to view Poland as a stable, competent and extremely attractive source of talent. As a result, Polish specialists — especially in IT, finance, marketing, customer service and engineering — now work for companies from all over the world, often without even leaving their own homes.

However, this growth is not solely due to low labour costs. Much more important is a unique combination of characteristics: a high level of education, very good knowledge of foreign languages, digital maturity, a Western-style work culture and a willingness to adapt to an international environment. All this means that Polish employees quickly become key members of teams, and many companies start hiring more specialists from Poland after their first recruitments.

At the same time, foreign entrepreneurs who do not have a company in Poland or any local structure face a number of questions. Can they legally employ a Polish citizen? Are they required to pay taxes in Poland? What are the costs, obligations and risks? What form of cooperation is the safest and most convenient? How do Poles expect contracts to be signed and what does communication with an employee from another country look like?

This article answers these questions and builds a solid foundation for the rest of the series.

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Why are foreign companies increasingly hiring Poles?

To understand why Polish specialists are so eagerly hired by foreign companies, it is worth taking a look at the labour market in Poland itself. Over the last two decades, Poland has become one of the largest business and technology service centres in Europe. Hundreds of global corporations — from investment banks to the Big 4 and technology companies — have located their operations, IT and finance hubs, and even R&D teams in Poland. As a result, a large proportion of Polish employees have gained experience working in international structures, working in English (or German) on a daily basis, in environments based on global procedures, tools and standards.

As a result, when a foreign employer hires a Pole, they are not hiring an ‘employee from another country’ who needs to be taught everything from scratch. They are hiring a person who, in most cases:

• is familiar with tools such as Jira, Slack, Asana, SAP, Salesforce, Confluence;
• understands the culture of online meetings and project work;
• is able to communicate in a structured and transparent manner;
• is accustomed to working with clients and teams from different time zones;
• is familiar with the specifics of Western markets.

Another important argument is the level of technical competence, especially in IT. Polish programmers have been at the top of global rankings for years, and Polish technology companies are gaining an increasingly good reputation. What is more, the culture of continuous learning and improvement is strongly rooted in the Polish market — employees are willing to invest in training, certifications and development, and foreign companies greatly appreciate this.

The issue of costs cannot be overlooked either. The differences in salaries between Western European markets and Poland are still significant. For employers, this means that they can hire highly qualified employees while maintaining competitive operating costs; for employees, it means that they can earn more than in most local companies. It is a win-win situation that has persisted for many years.

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Is it possible to legally employ a Polish citizen without setting up a company in Poland?

Definitely yes. This is one of the most frequently asked questions, especially by German or Dutch companies wondering whether they need a branch in Poland to sign a contract with an employee living in Poland. In practice, most companies do not set up any company or representative office in Poland, as there are three fully legal models of cooperation that make this possible:

• B2B (Polish business activity — JDG)

The most popular model of employing Poles by foreign companies. The employee sets up a sole proprietorship, issues invoices, pays taxes and contributions themselves, and the foreign company does not incur any local tax obligations.

• Employer of Record (EoR)

Ideal when the employee expects an employment contract or when the nature of the work requires the application of Polish labour law. EoR becomes the formal employer, handles payroll, human resources and social security, and the foreign company only pays a monthly invoice and manages the work.

• Short-term contracts / freelance

Used in projects that have a predetermined scope or limited duration. Less stable, but sometimes practical.

Each of these models works differently and has different tax, legal and organisational implications. The choice depends mainly on whether the company wants to hire someone ‘permanently’ or only collaborate on a project basis, as well as on the expectations of the employee themselves.

Hiring employees from Poland may seem complicated, especially for companies that do not have a structure here. That is why many entrepreneurs use the consultation or support of advisory companies such as getsix®. If you need to discuss your situation or are wondering which cooperation model will be the most convenient, you can contact our team — we will be happy to share our experience.

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B2B — what does it look like from the perspective of the employer and the employee?

B2B cooperation is so popular because it combines minimal formalities, favourable costs and great flexibility. For a foreign employer, this means a simple model in which the agreement is a business contract between two independent parties. As a rule, a foreign company does not have to pay social security contributions, apply Polish labour law or register in Poland as a tax payer, as these obligations are transferred to the Polish entrepreneur conducting B2B activities. Exceptions may only arise from specific cases of cooperation or the risk of establishing a permanent establishment, so each situation should be analysed individually.

From the point of view of a Polish B2B specialist, it offers the possibility to choose the form of taxation, deduct costs and flexibly manage their own finances. In practice, in many cases this means that a specialist can obtain a higher net salary than under an employment contract — especially with higher rates or an appropriately selected form of taxation — but the final result depends on the individual tax situation and preferences of the employee.

However, it is worth remembering that not every Polish candidate wants to work on a B2B basis. Younger specialists are keen to do so, but those who prefer stability or work in operational roles often prefer an employment contract — and this can influence the choice of cooperation model.

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Employer of Record — when is it necessary?

EoR is the most popular and definitely the most convenient solution for issuing a Polish employment contract when a foreign company does not have a legal entity in Poland. Although it is possible for a foreign employer to hire a Polish employee directly, this requires registration with the Polish Social Insurance Institution (ZUS) and fulfilment of a full set of obligations under Polish labour law, which is why it is rarely used in practice.

In the EoR model, the Polish EoR company becomes the formal employer, while the employee performs work for a foreign entrepreneur. The EoR takes over all obligations related to:

• tax settlement,
• payment of ZUS contributions,
• keeping employee files and HR documentation,
• holidays, benefits and employee benefits,
• compliance with Polish labour law and employer obligations.

EoR is often chosen by companies that value employment stability, want to offer their employees an employment contract or want to avoid having to enter the Polish HR and tax system. It is a more expensive model than B2B, but at the same time the safest, most predictable and simplest in terms of operation.

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Freelancer/contractor — when does it make sense?

Civil law or freelance contracts are a good solution wherever a project has a clearly defined scope, is time-limited or does not require full-time commitment. This model works particularly well in creative, marketing and design industries, as well as in tasks related to content creation, product graphic design, website development, individual advertising campaigns or short specialist analyses. Freelancing allows you to quickly expand your team with the skills your company needs only for a specific moment, without the need for a long-term B2B contract or formal employment.

In practice, this model of cooperation is also chosen by companies that are just testing cooperation with a given specialist and want to check their skills and communication style before deciding on a more stable model. A well-designed freelance contract can therefore be a tool for minimising risk, especially when the company is not yet sure whether the scope of responsibilities will continue to grow.

However, it is important to remember that freelance contracts have their limitations. This type of cooperation is less effective in roles that require daily commitment, readiness to work specific hours or constant responsibility for operational processes. It is not very effective for positions that require building relationships with clients, regular cooperation with a team or full availability in a remote working system. By definition, a freelancer is a person carrying out a project, not an employee integrated into the organisation — therefore, treating this form as a substitute for long-term employment usually does not bring good results.

It is also worth remembering that in Poland, freelancers are often seen as an ‘optional’ part of the team, rather than its foundation, which affects the stability of the collaboration. If a foreign company plans to build a permanent team, in most cases B2B or EoR will be a better solution, while a freelancer can be a great addition at the stage of implementing specific tasks or intensive campaigns.

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The recruitment process for Polish employees in practice

The recruitment of Poles by foreign companies is very similar to internal recruitment, but has several distinctive features. Poles are accustomed to working in international companies and often apply directly to foreign job advertisements. The most popular platforms are:

• LinkedIn,
• Pracuj.pl,
• JustJoin.it (IT),
• NoFluffJobs,
• foreign job portals with remote job advertisements.

Polish candidates pay close attention to the transparency of job advertisements. They expect clear salary ranges, job descriptions, information about the form of cooperation (B2B or EoR) and whether the company provides equipment or benefits. Fast communication is key in the recruitment process — the Polish labour market is very dynamic, and the best specialists have many offers.

After the interview stage, it is important to discuss the terms of cooperation in detail. Poles appreciate specifics: the scope of responsibilities, team structure, remote working rules, meeting schedule and work tools. A company that can present this clearly gains a significant advantage in the eyes of the candidate.

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Tax and legal obligations — what does an employer need to know?

Working with an employee from Poland may raise certain questions regarding taxes and the Social Insurance Institution (ZUS). In practice, with the B2B model or cooperation through an EoR, a foreign employer does not, as a rule, enter the Polish tax or contribution system, as all obligations are transferred to the Polish entrepreneur (B2B) or the EoR company, respectively. However, it is worth remembering that each cross-border situation requires individual analysis, especially in terms of the risk of establishing a permanent establishment in Poland — for example, when an employee performs representative activities or negotiates contracts on behalf of the company.

As a rule, a foreign company does not pay taxes or ZUS contributions in Poland if:

• it does not have a branch or permanent establishment in Poland,
• the cooperation is based on B2B or contract terms,
• the employee works from home and not from an office belonging to the foreign company,
• the company uses an EoR (in which case the EoR pays taxes and contributions).

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When does tax risk arise?

Risk arises when the activities of a foreign company begin to meet the criteria for a permanent establishment (PE) in Poland. In practice, this means situations in which an employee’s activity in Poland takes the form of representing the company, negotiating or concluding contracts on its behalf, conducting activities of key importance to the company, or making decisions that have a real impact on the functioning of the foreign entity.

Such cases are rare, but it is worth understanding them because their consequences can be serious — the establishment of a permanent establishment may mean the need to pay income tax in Poland on part of the company’s activities, and sometimes also the obligation to register for VAT or report in Poland.

Most often, the risk of a PE arises when an employee:

• has the authority to conclude contracts or make decisions binding on a foreign entrepreneur,
• negotiates the terms of contracts that are later formally signed by the head office,
• conducts regular operational activities in Poland, e.g. manages projects, resources or processes of key importance to the company,
• performs a representative function in relations with customers or partners, presenting itself as a ‘local representative office’,
• works in a manner suggesting the existence of a permanent business infrastructure, e.g. uses a dedicated office in Poland or a support structure that can hardly be considered an individual activity.

It is worth noting that simply employing a Polish employee who works remotely from home and performs technical, design or administrative tasks does not create a PE. Similarly, it does not arise simply because a company has a large number of people working from Poland — it is not the number of employees that counts, but the scope of their powers and the nature of their activities.

In practice, most foreign companies employ Poles without any tax risk — as long as the employee does not perform a decision-making function, does not represent the company to customers in a binding manner, does not negotiate contracts and does not have formal powers of attorney. However, all sales, negotiation and representation activities should be carried out from the country where the company has its registered office or by dedicated employees of the local structures.

Many foreign employers use the support of companies such as getsix® to better understand Polish legal, tax and organisational realities. If you would like to discuss your situation or get some advice, please contact us.

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Best practices for foreign companies employing Polish workers

• Always clearly define the form of cooperation (B2B, EoR, freelance) during the first interview. Polish candidates expect full transparency.
• Ensure that the contract precisely defines the scope of responsibilities, deadlines, confidentiality rules and transfer of copyright.
• Offer competitive salary ranges based on the realities of the Polish market.
• Ensure well-organised onboarding — Polish specialists attach great importance to clear procedures, communication rules and work tools.
• Avoid giving an employee the authority to negotiate or conclude contracts on behalf of the company if you have not analysed the tax consequences (PE risk).
• Build relationships based on mutual respect — Polish specialists greatly value a work culture based on partnership rather than micromanagement.

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The most common mistakes made by foreign employers

The biggest mistake is attempting to hire a Polish citizen under an employment contract issued directly by a foreign employer without local registration. This can lead to problems with Polish labour law, the Social Insurance Institution (ZUS) and taxes.

The second serious mistake is treating B2B as a full-time job — with imposed working hours, subordination and the obligation to report every hour worked. Such a structure is inconsistent with the nature of B2B cooperation and may lead to the relationship being reclassified as an employment relationship.

The third mistake is insufficient onboarding preparation. Remote cooperation with a person from another country requires good implementation. The lack of clearly defined rules for remote work, communication procedures, reporting rules and scope of responsibilities is a sure path to misunderstandings and frustration.

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Summary – is it worth hiring employees from Poland?

Hiring employees from Poland is not only legal and relatively easy, but also very profitable. Polish specialists offer a high level of competence, excellent technical preparation, great flexibility and very good language skills. Remote cooperation works very well here, and various cooperation models — from B2B to EoR — allow you to perfectly match the form of employment to the real needs of the company.
The most important thing to understand is that a foreign employer does not need to set up a company in Poland to hire a Polish employee. All you need to do is choose the right model, ensure good contracts and proper onboarding. The end result is a team that can realistically increase the competitiveness and efficiency of your company on the international market.

If you need support in hiring employees or contractors from Poland, you can contact the getsix® team. We help entrepreneurs sort out tax, HR, payroll and organisational issues, as well as choose the right cooperation model. If you would like to discuss your situation or get advice on the next steps, we will be happy to answer your questions and suggest possible solutions.

This article is just the beginning of a series. In the following parts, we will discuss B2B, Employer of Record, tax issues and employment costs in detail. Together, they will form a complete guide for foreign entrepreneurs who want to cooperate with Polish employees.

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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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