Tax In Poland

Hi all

I'm thinking of moving to Poland. I am self employed and all my business is done in England and that's where I pay my tax.

If I was to permanently reside in Poland can I continue to pay my tax in England. I here there's a rule that if you're in Poland for more than 180 days then you have to pay their tax. I have also heard that there is an agreement between the two countries that states as long as you are paying in one of the countries then that is acceptable.

Any help on the matter would be greatly appreciated.

Thanks in advance
Harry

If you register as living in Poland you will have to pay taxes on your income; probably world-wide but not sure. The amount of tax you will pay in Poland is much higher than in the UK for an equivalent salary as the personal tax allowances are much lower. The 183 days is correct. There is a tax agreement UK / Poland so you will only have to pay tax in one country. However be warned Polish red tape is horrendous which coupled with language makes it an experience to avoid if at all possible.

If you do not register an EU health card will cover you for serious stuff and paying privately for family doctor / dentist is relatively cheap; 15-20 GBP per visit

If you register yourself as self-employed sole trader with UK tax authorities and have all your Polish income paid to your trading name then in reality you can live and work in Poland and not worry about tax. I am however not sure of the exact legal status of this action. I have an English friend who has been doing it for 4-5 years now and he has never had any problems. The tax authorities are not too efficient but once they start as everywhere it goes on and on. The other thing is that whilst there is still a lot of regulations left over from communist era EU membership allows much of it to be ignored.

Check out http://www.worldwide-tax.com/poland/poland_tax.asp which is a good introduction. If you want to do everything strictly by the book then Tagje advice regarding tax consultants UK   Poland is good

I've been in Poland now 15 years and have my own business in Poland and have been an employee of the same company . (I own property in Poland and have previously taken out mortgage with Polish bank.) I am registered as living in Poland and have remained in Poland for longer than 183 days previously. I remain registered for tax in the UK and my Polish & UK earnings are declared to HMRC. UK-Poland has dual tax agreement and this means you do not have to pay in both (you pay where you are domiciled - this can be a domicile of choice within the EU- I choose UK as domicle even though mostly I live in Poland - I can do this because I have UK passport)
I have sent many Polish guys t the UK and since they were in the UK or over 3 months I paid their tax and NI for them in the UK- upon return to Poland the guys just showed the P45 to the Polish authorities and their Polish contributions were marked to show up-to-date contribution for ZUS (they were not required to pay any tax in Poland but also could claim any back from the UK.)
When sending guys to Holland the company paid both in Holland and in Poland for the guys and then I got the guys to sign a waiver and claimed the paid tax (employee contribution) back for the company account.
I have also sent guys to Germany, Norway, Eire, Latvia and outside of Europe and in almost every case I received different advice from local Polish authorities and those in "working" country. Even within Europe it seems that there is no consistent method for taxing the migrant EU worker however it would seem that if you choose to keep paying in the UK and remain registered there, no-one in Poland will demand you should pay in Poland.UNLESS you take up Polish citizenship or declare an open intention to stay in Poland forever when someone questions you or if you want to apply for Polish karta pobytu or passport. OR if you work for a Polish company that is not willing to pay your tax and NI contribution into the UK .i.e you earn most of your income for a Polish company in Poland.
To sum up it is quite complicated - I have not found found anyone yet who has given a definitive "one solution suits all" but for sure as long as the tax is paid somewhere and you are not hiding from the tax man you are not illegally evading tax. Tax avoidance perhaps but that is not illegal)
Check http://europa.eu/youreurope/citizens/wo … tbox-uid-0

Very interesting comment particularly regarding domicil. I shall now be doing a lot of research as it would be advantegeous for me to be taxed in UK

Further to your previous comment I have just spent some time on HMRC's site trying to find confirmation of your remarks concerning domicile of choice whilst living outside UK. My searches usually give some 800+ results and so I would like to contact a tax advisor in UK. As you have been through the process in some detail I wondered if you could recommend an advisor for England. Any help would be appreciated

Polterry - Recommending an adviser would be either easy or difficult depending on what you were looking to achieve. The people I deal with are company orientated dealing with payroll of expat employees etc. Everyone personal situation can be different and therefore if you were looking a personal tax adviser I am sure almost any accountancy would say they would represent you and the charge comparatively depending on the complexity. As I mentioned in my previous post -- "seems that there is no consistent method for taxing the migrant EU worker " -- and this would hold true for individuals coming from the same country, but getting their advice from different accountant.
For my personal tax affairs I deal with it myself since several different advisers have given different ways to deal with it. Some are very expensive and some are "bury your head in the sand". Since I always remained registered for UK tax even after leaving UK over 25 years ago I just carried on to self certify my earnings and submit my own tax return. If you are not registered for tax at this moment then it may be difficult for you get back on the UK tax register (as self certify) since you may have been removed once you started paying in Poland. (To get back on the UK tax register for a UK national would require that you demonstrate that you intended your life to return there (property in UK, employer in UK, substantial business interests in UK etc, spend more than 183 days each year in UK, self employed etc)
Additionally I am highly mobile - I don't spend more than 183 in any one country which enables me to easily claim domicile of choice. The tax authorities can impose a tax domicile -stating that you spend more than 183 days in that country. (in mainland Europe this in practice is extremely difficult to prove since the Schengen Zone means you can move freely, with no records being kept of where you actually are at any one time within the European mainland (until such time as you register e.g zameldowanie which is only enforced in some countries and not necessary for the first 3 months for Europeans in European countries). The 183 day rule is only really easily investigated in the UK where you need to show your passport when leaving and entering. I can easily show I have not been 183 days in the UK
in my case I personally work mostly outside of Poland (& often outside Europe) - Last 10 years I have worked Saudi, Indonesia, Norway, Kazakhstan, UK, Eire, Latvia, China, Brazil etc etc) My main residence is in Poland but I am not probably not 183 days in Poland each year. It is therefore difficult for any one country to impose a tax domicile on myself (Norway do impose and then expect you to prove otherwise). I choose my domicile and pay in the UK, since it was my historical place of paying tax. I file my self-assessment tax return on line via HMRC web site without the necessity for involving accountants ( I also include in this tax return the salary I get from my Polish company as well as any other taxable earnings made outside of Poland) . I choose to do this since I don't mind paying tax to somewhere and as mentioned in previous post so long as I am not " hiding from the tax man you are not illegally evading tax".
I could do like the 100,000+ of UK expats claiming to live in Spain and just pay nothing to UK, don't bother with submitting a return, and just have a tax free life. (Spain does not bother with chasing expats to register for Spanish tax for the reasons attributed to Schengen above - it is only when an Expat gets a job in Spain that they find they have problems with the tax system.)
My ethos - don't hide from the tax man- pay at least something in one country. More often than not so long as you can show you are paying somewhere most other people will not investigate further - it is time consuming, complicated and not worthwhile to investigate the tax affairs of most individuals for the relatively low returns they would receive - billionaires, among the readers here, please ignore this statement 
If you are working 183+ days in any one country (and this country may be classed as your permanent residence) then you should be paying tax in that country.
Everyone's situation is different once you get out of the PAYE scenario.
Poltery if you wish to discuss further please send PM

Minnes thanks for very comprehensive reply. I was rather like you until I retired; I have also done Khazakstan and China amongst others. The difference is that I became non-resident in UK and paid tax, or rather company paid tax as part of package, in whichever country I was working at the time. A base in Poland did not present any problem until retirement. I intend to return permantly to England in a couple of years but in the meantime if I can avoid the 183 days rule it would be advantageous. I will search out a tax advisor for England.

Thanks again for all the time you have spent on this subject