Poland

{"ftc_utility":"high","fbar_trigger_notes":"Polish bank accounts are commonly required for payroll, rent, and daily transactions. Balances exceeding $10,000 in aggregate across foreign accounts trigger FBAR filing (FinCEN Form 114). Polish banking is well-integrated and most expats will hold local PLN accounts. FATCA compliance is active between Poland and the US under the Model 1 IGA signed in 2013.","ftc_utility_reason":"Poland taxes worldwide income for tax residents at progressive rates of 12% and 32%. US citizens residing in Poland who earn Polish-source income will pay Polish PIT, which can be used as a Foreign Tax Credit against US federal tax liability. For income above the FEIE exclusion amount, or for income types not eligible for FEIE (e.g. passive income), the FTC is the primary mechanism to avoid double taxation. The 32% top rate exceeds the US top rate in many brackets, making the FTC particularly valuable for higher earners.","presence_day_count_notes":"Poland does not impose a minimum stay requirement for short-term visitors under Schengen rules (90 days in any 180-day period for non-EU nationals). US citizens residing in Poland typically hold a temporary or permanent residence permit. Presence for FEIE purposes is counted based on physical days in Poland, not visa status. The 330-day test is generally achievable for residents with Polish work or residence permits.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.12,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Polish tax residents is generally subject to Polish PIT at progressive rates (12% / 32%). Polish domestic pensions paid by ZUS (the national social insurance institution) are also taxable but subject to contribution deductions. Treaty provisions may limit Polish taxing rights on government pensions from the US to the US only (Article 20 of the 1974 treaty covers government service pensions).","tax_rate":0.12,"locally_taxed":true},"social_security":{"notes":"Under the US-Poland tax treaty, US Social Security benefits paid to a Polish resident are generally taxable only in the US. Poland does not separately levy PIT on US Social Security income for residents. The US-Poland totalization agreement coordinates social insurance contributions to avoid dual coverage.","locally_taxed":false,"treaty_protection":true},"roth_distributions":{"notes":"Poland does not recognize the Roth IRA structure. Distributions may be treated as foreign-source income subject to Polish PIT at progressive rates. The tax-free treatment available under US law is not mirrored in Polish domestic law. US-Poland treaty does not specifically address Roth accounts. Effective tax treatment depends on characterization of the distribution.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The US-Poland tax treaty (1974, with protocol) covers pensions and retirement income. Article 19 of the treaty generally assigns taxing rights on private pensions to the residence country, meaning distributions from US 401(k) and IRA accounts are taxable in Poland for Polish tax residents. Distributions are subject to the progressive PIT rates (12% up to PLN 120,000; 32% above). Treaty relief may allow a foreign tax credit for US taxes withheld. Treaty interpretation can be complex and professional advice is recommended.","tax_rate":0.12,"locally_taxed":true,"treaty_protection":true}}

{"rate":0.19,"notes":"Capital gains from securities and other investments are taxed at a flat 19% rate (the 'Belka tax'). Real estate gains may also qualify for this flat rate under certain conditions.","details":{"tax_type":"Capital Gains Tax","country_name":"Poland","country_iso_code":"POL","source_references":["PwC Worldwide Tax Summaries - Poland","Polish Personal Income Tax Act (ustawa o podatku dochodowym od osob fizycznych)"],"last_verified_date":"2026-06-03","general_description":"Poland levies a flat 19% tax on capital gains from the sale of securities, shares, and investment funds. This rate is separate from the progressive income tax schedule. Gains from real estate held less than 5 years are taxed at 19% of the gain; gains on property held over 5 years from the end of the calendar year of acquisition are exempt. The tax is commonly referred to as the 'Belka tax' after the finance minister who introduced it.","corporate_capital_gains":{"rate":0.19,"tax_treatment":"Capital gains are included in general corporate taxable income and taxed at the standard CIT rate of 19% (or 9% for small taxpayers with revenue under EUR 2 million)."},"individual_capital_gains":{"rate":0.19,"tax_treatment":"Flat 19% on gains from sale of shares, securities, and investment fund units. Real estate gains taxed at 19% if held less than 5 years. Gains on property held more than 5 years (from end of acquisition calendar year) are exempt. Losses may be offset against gains of the same category within a 5-year carryforward period."}}}

{"notes":"Dividends paid to Polish tax residents are subject to a flat 19% withholding tax (the Belka tax). This applies to dividends from Polish and foreign companies alike. Dividends received from EU/EEA resident companies may benefit from exemptions under specific conditions. The 19% rate also applies to interest and other investment income.","rates":[{"rate":0.19,"type":"withholding","notes":"Standard flat rate on dividends paid to individuals, withheld at source. Applies to both domestic and foreign-sourced dividends for Polish tax residents."},{"rate":0.19,"type":"withholding","notes":"Rate applicable to non-residents absent a treaty provision reducing the rate."}]}