Holders of the Polish Card (Karta Polaka) can take advantage of the “Ulga na powrót” tax relief. It exempts income up to 85,500 PLN per year from taxation and lasts four calendar years. The relief is not the same as the Polish Card payments: the money doesn’t come from the state but is retained through tax savings.

Who it’s for and why it was created

The program was created to bring valuable specialists back to Poland: people who work, pay taxes, and are needed by the state. Poland wants people to move their tax residency to Poland. This also applies to Poles who moved abroad, including with businesses or as specialists, for example to the UK or Germany. Polish Card holders can also qualify for the relief: the state motivates them to return to their historical homeland and become tax residents of Poland.

Size of the exemption and savings calculation

The tax relief covers income of up to 85,500 PLN per year. If income fully fits within this amount, no tax is charged on it. If the quota is exceeded, tax is charged only on the amount above 85,000 PLN.

At the basic tax rate of 12%, exemption up to 85,000 PLN allows savings of about 10,000 PLN per year. The relief lasts four years, so total savings amount to about 40,000 PLN. According to the material’s author, this sum can exceed the amount of Polish Card payments. The payments and the tax relief are summed: you can receive both.

Separately, there is a kwota wolna od podatku (tax-free income threshold) of about 30,000 PLN per year. It is added to the 85,000 PLN limit, resulting in a tax-exempt amount of 115,000 PLN.

Which types of income are counted

The relief covers umowa o świadczenie usług (service contracts), umowa B2B, and any individual business activity regardless of the form of taxation. For example, for remote work one can register an active business (działalność gospodarcza) or work under umowa zlecenia or umowa o dzieło with Polish or foreign counterparties. The relief does not apply to income in the form of dividends.

When the countdown starts

There are two options for starting. The first is the year tax residency is transferred to Poland. For example, moving permanently in 2026 starts the relief, and it lasts until 2029 inclusive.

The second option is to start the relief the following year after the move. If you move in 2026 and start in 2027, the relief lasts until 2030. This option is considered the most beneficial, since it covers four full calendar years. If the relief starts in the year of the move, the move probably didn’t happen at the start of the year, so it’s recommended to choose to start it the following year.

Pedestrian street in central Warsaw with a tram line and shop signs

How to apply and what the restrictions are

You can apply for the relief yourself, by submitting an application (a template is available via the link in the video description), or through your employer. Doing it yourself means applying when filing your annual tax return.

Important conditions:

  • the relief is granted only once in a lifetime;
  • you must not have been a tax resident of Poland for at least 3 years before the permanent move; during an audit, tax returns for the previous three years may be requested;
  • the Polish Card must be obtained before moving to Poland; it’s recommended to make scans of it, since the card may be taken away during checks.

If you apply for permanent residency right after arrival, bypassing the Polish Card, for example due to urgent legalization needs, you won’t be able to claim the tax relief. In that case, the relief is only available through the Polish Card. The scheme looks like this: obtaining the Polish Card, moving, registering a business or a B2B, zlecenia, or umowa o dzieło employment contract, then applying for permanent residency through the Polish Card.

What’s important to consider before choosing a path

The choice depends on what matters more: fast legalization and citizenship down the road, or the chance to get payments and the tax relief. In the latter case, you first get the Polish Card, then permanent residency.

For either of these documents, the Polish Card or permanent residency, an interview with an inspector in Polish is mandatory. According to the material’s author, interviews have become longer, lasting 2 to 3 hours, so you need to prepare for them.