Polish Return Relief for Employees and Business Owners

The Return Relief (Ulga na powrót) is a tax exemption for individuals relocating their tax residency to Poland. It offers a PIT exemption for four consecutive years. For companies hiring via an Employer of Record (EOR), this serves as a recruitment tool to attract Polish expats and foreign specialists to the Polish market.

Eligibility Criteria

Taxpayers must meet specific conditions regarding residency history and citizenship.

Residency Gap No Polish tax residency for three full calendar years before the move.
Move Date Relocation must have occurred after 31 December 2021.
Citizenship Must hold Polish, EU, EEA, or Swiss citizenship. Residents of the UK, USA, Canada, or Australia for three continuous years prior also qualify.
Income Type Applies to employment contracts, mandate contracts (umowa zlecenie), and B2B business activities.

The Tax Exemption Mechanism

The relief exempts a fixed amount of gross income from PIT, applied in addition to the standard tax-free allowance.

Component	Annual Amount (PLN)
Return Relief Limit	85,528
Standard Tax-Free Allowance	30,000
Total Tax-Free Income	115,528

In 2026, the tax rate for income up to 120,000 PLN is 12%. Income above this is taxed at 32%. The relief removes 85,528 PLN from the taxable base, delaying entry into the higher tax bracket.

2026 Tax Savings Comparison

Estimated annual tax savings for an individual on a standard employment contract.

Annual Gross Salary (PLN)	PIT Without Relief (PLN)	PIT With Relief (PLN)	Annual Saving (PLN)
100,000	8,400	0	8,400
150,000	20,400	4,137	16,263
200,000	36,400	10,137	26,263
250,000	52,400	23,283	29,117

Figures are rounded estimates. Social security and health insurance remain payable on full gross amounts.

Implementation and Payroll

For foreign entities, the EOR handles the administrative burden of this relief.

Statement The employee provides a written statement to the EOR confirming their eligibility.
Timing The taxpayer chooses whether to start the relief in the year of relocation or the following year.
Monthly Payroll The EOR applies the exemption to monthly payments, providing an immediate increase in net take-home pay.

Business Value

The 85,528 PLN limit is a shared cap with other incentives, such as the Relief for Young People. For B2B contractors, the relief reduces the revenue base under flat tax (19%) or lump-sum (Ryczałt) systems. Using this relief enables firms to offer competitive net salaries in Poland without increasing gross employment costs, facilitating the recruitment of senior talent from markets like Western Europe and North America.