POLAND Trends and Developments Contributed by: Piotr Augustyniak, Nash Concept Ltd
Introduction: Poland as a Destination Jurisdiction The European framework for the taxation of inter - nationally mobile private wealth has been reshaped within a remarkably short period. The United Kingdom abolished the remittance basis for non-domiciled indi - viduals with effect from 6 April 2025, replacing it with a narrower four-year regime for foreign income and gains. Italy has increased its substitute tax on foreign income twice within two years – from EUR100,000 to EUR200,000 in 2024 and, under the 2026 Budget Law, to EUR300,000 for individuals transferring their resi - dence from 1 January 2026, while the charge per fam - ily member doubled to EUR50,000. In Switzerland, the practice surrounding expenditure-based (lump-sum) taxation has become more restrictive in several can - tons. Together, these developments have narrowed the range of predictable, statutorily defined regimes available to relocating principals. Against this background, Poland – historically a juris - diction of emigration in matters of private wealth – merits renewed attention as a destination. Since 1 January 2022 the Personal Income Tax Act has con - tained a lump-sum regime for the foreign income of persons transferring their residence to Poland which, at PLN200,000 (approximately EUR47,000) per annum, amounts to roughly one sixth of the Italian charge, yet remains little known and, in the author’s assessment, underutilised. This article examines that regime in detail and situates it among the other devel - opments that shaped Polish private wealth law in 2025 and early 2026: the attempted – and ultimately vetoed – recalibration of family foundation taxation, the treat - ment of foreign structures, exit taxation, and the con - tinuing expansion of reporting obligations. The Lump-Sum Tax on the Foreign Income of New Residents Chapter 6b of the Personal Income Tax Act (Articles 30j–30p), introduced as part of the 2022 reform pack - age, establishes a lump-sum tax on foreign income ( ryczałt od przychodów zagranicznych ) for natural per - sons who transfer their place of residence to Poland. The legislative purpose, as recorded in the explana - tory memorandum, was twofold: to attract individu - als of substantial means and, through a mandatory expenditure component, to direct part of the resulting benefit towards purposes regarded as socially pro -
ductive. The regime’s construction is deliberate: the State forgoes ordinary progressive taxation of foreign income in exchange for a fixed, predictable payment and a defined contribution to the domestic economy, science, culture or sport. Eligibility and election The regime is available to a natural person who trans - fers their place of residence to Poland and thereby becomes subject to unlimited tax liability, provided that they were not a Polish tax resident for at least five of the six tax years immediately preceding the year of relocation. The condition is objective and requires no negotiation with the tax administration; in this respect, the Polish regime differs from the Swiss expenditure- based model, which rests on an individual arrange - ment with the cantonal authority. The election is made by a written declaration submitted to the competent tax office by the end of January of the year follow - ing the tax year in which residence was transferred. The declaration is made once and governs the entire period of taxation under the regime. The mechanics of the charge The tax amounts to PLN200,000 for each tax year, irrespective of the amount of foreign income derived in that year. Foreign income – encompassing, in par - ticular, dividends, interest, capital gains, royalties and income from the letting of foreign immovable prop - erty – is neither aggregated with income taxable in Poland under the general rules nor disclosed in annual tax returns or tax books. Income from Polish sources remains taxable under the ordinary provisions. Where residence is transferred in the course of a tax year, the lump sum for that year is determined in proportion to the number of months of unlimited tax liability. Pay - ment falls due by 30 April of the year following the tax year concerned. The expenditure obligation From the tax year immediately following the year of relocation, the taxpayer must incur expenditure of no less than PLN100,000 per tax year on purposes enu - merated in the implementing regulation of the Minister of Finance, namely: • economic growth; • the development of science and education;
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