Publication date: 23.07.2024
Vitaliy Kolomiets is an experienced lawyer specializing in assisting with obtaining residence permits and residence cards in Poland. He has in-depth knowledge of Polish law and many years of experience in migration matters. He has over 5 years of experience.
Freelancing in Poland
The nearest country that first started accepting Ukrainians at the beginning of the full-scale war was Poland. It had already been of interest to Ukrainians and many residents of non-EU countries due to its location, similar cultural features, opportunities for university admission, employment, and simple taxation when registering a business. This aspect plays an important role for freelancers.
How to Start Freelancing
First, you need to understand what income a freelancer will earn and whether it is necessary to register as a sole proprietor or if working through a business incubator will suffice. If the annual income is up to 30,000 zlotys, then there is no need to open a sole proprietorship.
When working through a business incubator, the service contract will be concluded with the business incubator itself. Such cooperation is equivalent to employment – the responsibility for paying taxes lies with the BI.
Freelance Status Registration in Poland
If a person decides to officially register their freelance work in Poland, they will need the following documents to register as a sole proprietor:
- a document confirming legal residence in Poland – residence card, Polish Card, visa, long-term EU resident card;
- an identity document;
- individual tax number PESEL;
- a bank account;
- company details, list of NACE codes, company registration address (if needed).
If you are not ready to register as a sole proprietor, you can sign a contract with a business incubator. In this case, they will take on the responsibility of paying taxes and all legal matters related to contracts with clients. It is important to note that business incubators help with all stages of setting up your activity and can also assist with the move to Poland.
Learn more about business incubators in Poland here
Taxation and Accounting
Poland is often chosen for business due to its relatively simple tax code. Freelancers are required to pay income tax and social security tax to ZUS. This ranges from 10 to 30% of income.
The type of taxation is chosen according to individual preferences and income:
- tax scale – for incomes up to 120,000 zlotys per year, 12% of the received income is paid. If income exceeds this amount, 32% of the sum over 120,000 zlotys is paid;
- linear fixed tax applied to all legal entities and amounts to 19% of income;
- lump-sum tax – a tax on turnover. Depending on the type of activity, it ranges from 2% to 17%;
- tax card – implies monthly tax payment at a fixed rate regardless of income.
Note: A married couple has the right to file taxes jointly as a single household.
Accounting can be managed independently or with the help of an accountant. On the “Consultant” marketplace, you can choose a specialist who will fully handle your accounting and interact with tax authorities.
Freelancers must file a tax return once a year in April. If there is income from foreign companies, for example, you continue to receive funds working with clients from your country, they must also be declared as foreign income. However, for Ukrainians, there is a privilege: Poland has signed double taxation agreements with Ukraine. Therefore, a freelancer can pay taxes in Ukraine for orders from Ukrainian clients, and the amounts received from them do not need to be declared.
Payment Systems and Methods of Receiving Payments
Transactions between the client and the contractor in the case of a registered sole proprietorship are conducted under a B2B contract. A bank account is needed for such transactions.
Other possible methods of payment for services in Poland are not different from most countries. Poles prefer familiar payment systems or gateways. The latter are more popular for online stores. Here you have Polish PayU, popular Blik, Dotpay, Przelewy24, Tpay, BlueMedia.
Payment wallets such as ecoPayz, Skrill, and Neteller are also popular. Their advantage is that they are not banking institutions, and payments through them are not tracked, but a drawback is that both users must be registered in the program, which is not very convenient for client-contractor transactions.
Payment cards, though outdated, are also used, for example, for regular payments and subscriptions.
Penalties for Non-Payment of Taxes in Poland
If you do not pay taxes as a freelancer in Poland, you may be fined from 301 to 60,200 zlotys. The maximum penalty is imprisonment. Taxes in Poland can be paid online or at the tax office at the place of residence.
Only those freelancers with an annual income of up to 30,000 zlotys are exempt from paying income tax. Therefore, we recommend keeping track of income, even if a person has not registered as a sole proprietor, so that in the case of a tax inspection, a report can be provided.
Freelancing for Ukrainians in Poland
Due to the full-scale invasion, it has become much easier for Ukrainians to move to Poland and start their business there. In Poland, you can obtain temporary protection PESEL UKR or enter with a biometric passport, obtain PESEL, and register as a sole proprietor or work through a business incubator. In any case, do not forget the documents that allow you to stay in Poland legally – with a foreign passport, a Ukrainian has the right to stay no more than 180 days a year.
Conclusions
Freelancing in Poland can be more profitable than in Ukraine or another non-EU country. With favorable legislation and taxation, Poland is quite attractive for freelancers and any business, and due to the war in Ukraine, it is also safe. We recommend consulting with lawyers on the “Consultant” marketplace to ensure legal and profitable freelancing in Poland, avoid overpaying and not get fined.
