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relief for return

Tax relief for return – basic information

Poland offers a special tax relief called „ulga na powrót” (relief for return). The name can be misleading. It is not only for people returning to Poland but also for foreigners who are settling in Poland.

What Are the Benefits?

  • You don’t pay income tax on 85,528 PLN per year for 4 years.
  • In total, you can earn 342,112 PLN tax-free

You can benefit from the relief for 4 consecutive years. This period starts either in the year you moved to Poland or the following year—the choice is yours.

Who Can Apply?

You can use this tax relief if:

  1. You have lived outside Poland for at least 3 years before moving.
  2. You moved to Poland after 31.12.2021 and now live and pay taxes in Poland as a tax resident.
  3. You meet at least one of the following conditions:
  • Specified citizenship or a Polish Card
    You have a Polish Card or the appropriate citizenship (Polish, from a member state of the European Union, from a state belonging to the European Economic Area or the Swiss Confederation).
  • 5 years in Poland, 3 years abroad, and a return to Poland
    You lived in Poland for 5 years, then moved to any other country for at least 3 full years and the beginning of the year in which you are moving to Poland, and now you are transferring your tax residency back to Poland. Your citizenship does not matter.
  • 3 years in a specified country before arriving in Poland
    For the full 3 years preceding the transfer of tax residency to Poland and the beginning of the year in which you are moving to Poland, you lived in a qualifying country (a member state of the European Union, a state belonging to the European Economic Area, the Swiss Confederation, Australia, the Republic of Chile, the State of Israel, Japan, Canada, the United Mexican States, New Zealand, the Republic of Korea, the United Kingdom of Great Britain and Northern Ireland, or the United States of America).

Types of Income Eligible for the Tax Relief for Return to Poland

The tax relief for return applies to various types of income earned in Poland e.g. business activity taxed according to the tax scale, flat tax, IP Box, or lump sum tax on recorded revenue, employment under a contract of employment , a contract of mandate, maternity allowance…

If you want to know the details and learn how to take advantage of the relief, contact us.

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