27 May 2025
In recent years, Poland has emerged as a popular European destination for Indian professionals, students, and skilled workers. This growing Indian diaspora contributes to Poland's workforce and economy while maintaining strong financial ties with family back home in India. One critical aspect that Indian expats must understand while living and working abroad is taxation. Knowing how the Polish tax system applies to foreign workers helps avoid legal issues and ensures financial stability. Whether you send money to India from Poland or file annual taxes, a reliable partner like ACE Money Transfer can simplify your remittance needs while keeping your finances in check.
Before diving into the specifics for Indian expats, it’s crucial to understand the basics of how Poland's tax system operates. Poland follows a structured income tax system that applies to residents and non-residents differently.
Poland primarily uses Personal Income Tax (PIT) to tax individuals. The tax system operates on two main income brackets:
Some professionals, such as freelancers and self-employed individuals, may opt for a flat tax rate, depending on their income source and profession. Poland also offers a simplified tax regime for certain industries, but this must be opted for and reported accurately.
Poland uses the 183-day rule to determine tax residency. If an individual stays in Poland for more than 183 days in a calendar year or has their centre of vital interest (family, property, or economic ties) in Poland, they are considered tax residents.
For Indian expats, this means that once you cross the 183-day threshold, you may need to declare global income, including rent, dividends, or investments from India.
Indian expats working in Poland must comply with Polish tax laws just like local citizens. Your employment status, type of income, and duration of stay all determine your obligations.
Your employer is responsible for withholding taxes from your monthly salary and submitting them to the Polish tax office (Urząd Skarbowy). These deductions include income tax and social security. At the end of the fiscal year, you’re required to report your annual income through tax filing. Monthly pay slips and the PIT-11 form (issued by employers) serve as crucial documents for annual reporting.
If you are a Polish tax resident, any income earned in India (e.g., rent from property or dividend earnings) may be taxable in Poland. You are required to report such foreign income in your annual tax return, even if it’s already taxed in India. However, the Double Taxation Avoidance Agreement (DTA) between India and Poland helps avoid paying tax twice on the same income (explained later).
Expats working in Poland typically contribute to the ZUS (Zakład Ubezpieczeń Społecznych) social security system. These contributions cover healthcare, retirement, and unemployment benefits. Contribution rates are:
In some cases, Indian expats may be exempted from paying social security if there's a bilateral social security agreement between India and Poland or if the employee is on a short-term assignment.
To protect expats from paying taxes in both countries, India and Poland have signed a Double Taxation Avoidance Agreement. This agreement ensures income is not taxed twice and outlines mechanisms for relief.
The primary purpose of the DTA is to prevent double taxation of income earned by residents of either country. This is especially useful for Indian expats earning income both in India and Poland.
Two main relief methods apply:
To claim relief, you must submit:
These documents should be submitted during your Polish tax filing process.
Even if your employer withholds taxes, filing a tax return is mandatory for residents and beneficial for those seeking refunds or deductions.
The deadline for filing taxes in Poland is typically April 30th for the previous calendar year. Tax returns can be submitted via:
The tax office will assess your return and notify you of any refunds or further payments.
Common tax forms include:
Ensure you collect all income statements before the filing season begins.
Navigating tax documents in Polish can be difficult. Fortunately, many English-speaking tax consultants offer affordable services for expats. Additionally, some Polish government offices provide limited support in English or have translated guidelines to assist foreign nationals.
Indian expats may benefit from several tax deductions that reduce overall taxable income.
Expats can claim deductions for:
These deductions must be documented and included in your annual return.
Temporary foreign workers may qualify for special allowances or relief schemes under local or EU tax laws. Some allowances also apply to specific job categories or short-term assignments.
Failure to comply with Polish tax laws can lead to serious consequences.
Penalties may include:
In severe cases, it could affect your immigration status.
If you’ve made a mistake, you can submit an amended return. This is done by refiling the correct form and informing the Polish tax authorities (Urząd Skarbowy). It's always better to correct errors voluntarily before they are discovered during an audit.
Sending money to India from Poland is a common practice among Indian expats. But is it taxable?
If the income has already been taxed in Poland and is being sent to India for personal use, it is not subject to additional tax in India. However, high-value remittances may be scrutinised under India’s LRS (Liberalised Remittance Scheme) regulations, though that mainly applies to residents sending funds out of India.
Always use regulated and licensed money transfer services like ACE Money Transfer. Not only does it guarantee safety and compliance, but it also helps maintain documented proof of remittances, which may be useful during tax filing in either country.
ACE Money Transfer isn’t just a money-sending platform—it’s your financial companion abroad.
With competitive exchange rates, low fees, and fast transactions, ACE ensures your hard-earned money reaches your loved ones efficiently. Their robust security features protect against fraud and delays.
ACE provides digital transaction records, which can serve as proof of income and remittance history for tax purposes. This simplifies filing and adds transparency to your financial trail. ACE Money Transfer is rated 4.7 out of 5 on Trustpilot with over 129,000 reviews — a testament to their commitment to excellent service.
Understanding taxation is vital for Indian expats working in Poland. From income tax and social contributions to the DTA and remittance implications, staying compliant helps you avoid penalties and financial headaches. Leveraging trusted services like ACE Money Transfer makes money transfer from Poland to India safe, fast, and transparent, supporting both your financial goals and peace of mind.
No, the DTA between India and Poland helps avoid double taxation through specific relief mechanisms.
The tax rate can vary from 12% to 32%, depending on your income and residency status.
If your income is already taxed in Poland, remittances are generally not taxed again in India under personal capacity.
You need to provide documentation such as tax residency certificates, Form 10F, and income proof from India.
Yes, ACE provides digital transaction histories and receipts that you can use as supporting documents during tax filing.