Polish Return Tax Relief – Pay Zero Tax on Income After Moving to Poland!
Moving to Poland for work or business can be a big step, but it comes with a powerful tax incentive. Under the Polish Return Tax Relief (ulga na powrót), individuals who become Polish tax residents after living abroad can enjoy up to PLN 85,528 of tax-free income each year for four consecutive years.
That’s over PLN 342,000 of completely tax-free income. This benefit applies both to both employees and entrepreneurs, making it one of the most attractive relocation incentives in Europe.
MartiniTax helps both expats and returning Polish citizens to qualify for the relief with all the steps necessary.
What is the Return Relief?
The Return Relief is a special exemption from Personal Income Tax (PIT) available to individuals who move their tax residency to or back to Poland.
Instead of paying tax on all of your income, you can earn up to PLN 85,528 per year tax-free. The exemption applies for four consecutive years, starting with the year you become a Polish tax resident or the following year.
Who Can Benefit?
The Return Relief is open to:
- Employees relocating to Poland to work for Polish or foreign employers.
- People under contracts of mandate
- Entrepreneurs starting or transferring their business activity to Poland.
- Returning Polish citizens who spent at least three years abroad.
- Foreigners (expats) moving to Poland for professional or personal reasons.
How Does It Work?
Each year for four years, the first PLN 85,528 of your income is exempt from PIT.
- Applies to employment contracts, B2B (self-employed) income, or business income.
- Generally works alongside the standard tax-free allowance and other reliefs (if applicable).
Conditions and Requirements
To qualify, you must:
- Become a Polish tax resident – meaning Poland becomes your main place of life and economic activity (center of vital interests), or you spend over 183 days per year in Poland.
- Not have been a Polish tax resident for at least 3 years before returning.
- Properly document your move – including deregistration abroad, registration in Poland, and compliance with double taxation treaties.
- Declare the exemption in your annual PIT return.
Return Relief for Expats and Returning Poles
The exemption isn’t only for Polish citizens. Foreigners relocating to Poland can also use it, provided they meet the residency and non-residency requirements.
This makes Poland especially attractive for:
- Expats moving to Poland for professional reasons.
- Entrepreneurs opening or relocating their business to Poland.
- Highly skilled employees in IT, engineering, and finance.
Common Mistakes
- Failing to prove residency change (tax authorities may challenge the claim).
- Not keeping documentation of foreign residence to prove the 3-year condition.
- Misunderstanding double taxation rules when income is still partially taxed abroad.
- Assuming all income is exempt.
Why Work With a Tax Advisor
While the relief seems straightforward, the residency rules and documentation are critical. A mistake can result in losing the exemption or facing penalties.
We support clients by:
- Feasibility analysis.
- Tax ruling applications to secure the right to apply tax relief.
- Ensuring all tax incentives available to you are exercised
- Handling cross-border tax issues (double taxation, foreign income).
Take the Next Step
The Polish Return Tax Relief is a unique opportunity to significantly reduce your tax burden when moving to Poland, but only if you meet the conditions and apply it correctly.
Contact us today to find out if you qualify and to secure your four years of tax-free income in Poland.