Taxation in Poland: what are the advantages for digital nomads?
Poland has emerged as an increasingly attractive destination for digital nomads, offering both cultural and tax opportunities. For those seeking a new base while working remotely, understanding the Polish tax system is essential to ensure tax compliance and take advantage of available benefits.
Tax Structure in Poland
Taxation of individuals in Poland is based on the principle of residence. This means that if a person resides in Poland for more than 183 days in a tax year, they are considered a tax resident and are subject to taxation on their overall income. Income earned in Poland, regardless of nationality, is also subject to taxation, following a progressive tax scale.
Income tax rates for individuals in Poland vary according to income. For 2024, the bands are:
12% for annual incomes up to PLN 120,000.
32% for incomes above PLN 120,000.
Digital nomads who stay in Poland for extended periods should be aware of these regulations to avoid tax surprises.
Taxation of Foreign Income
If the digital nomad maintains a tax residence outside Poland but still carries out activities in the country, they will only be taxed on the income generated in Poland. However, Poland has double taxation agreements with several countries, which makes it easier to eliminate double taxation in certain cases. It is essential for digital nomads to be aware of these agreements, as this can significantly reduce the tax burden in both jurisdictions.
Noteworthy legal provisions
Poland has the Income Tax Act of 1991, which lays down tax rules for individuals and companies. In addition, the country is a signatory to several Double Taxation Conventions (DTT), such as those with Portugal, Italy and the United Kingdom, which makes life easier for nomads who have sources of income in more than one country.
Poland also allows the application of specific tax deductions, especially for those who work remotely. For example, self-employed workers can deduct work-related expenses, such as internet costs and office supplies, as long as these expenses are directly linked to generating income.
Considerations for Digital Nomads
In addition to tax issues, many digital nomads are looking for destinations that offer quality of life and opportunities for cultural integration. Poland, with its rich history, beautiful landscapes and welcoming atmosphere, can offer an interesting base for those looking to explore Central Europe while managing their tax obligations efficiently.
When planning a longer stay, it's important to consider the impact of settling in a new country, both in tax terms and in terms of adapting to the local culture. Choosing Poland can be an excellent opportunity to balance these issues and enjoy an enriching experience.
Conclusion
Poland offers a favourable environment for digital nomads wishing to explore Central Europe, with an efficient tax structure and double taxation agreements that can make it easier to manage the tax burden. At the same time, the country offers a rich cultural experience that can help nomads feel more connected while remaining legally compliant. With proper planning, it's possible to take advantage of this destination without facing legal or tax complications.
If you are interested in hiring professional legal services related to Tax Planning, we are a law firm specialising in the subject. To do so, please contact us by e-mail: contato@trpuppioadvocacia.com.br, or via WhatsApp.
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