PolishForums LIVE  /  Archives [3]    
   
Archives - 2010-2019 / Work  % width 7

Will Poland tax my ISA?


cja  2 | 4  
10 Apr 2017 /  #1
I am UK resident for tax purposes and have a stocks and shares ISA. If I become resident in Poland for tax purposes then will Poland tax my ISA?

If so then in what way? I do not make withdrawals from my ISA and it holds a single fund which does not pay dividends. So the only activity is the change in value of the fund holding and my occasional payments into the ISA with which I buy more of the same fund.
delphiandomine  86 | 17823  
10 Apr 2017 /  #2
If I become resident in Poland for tax purposes then will Poland tax my ISA?

Unfortunately, you'll be no longer entitled to hold the tax-free benefits of the ISA (it's for UK tax residents online) - and you will also be taxed 19% on any gains that the ISA makes.
OP cja  2 | 4  
10 Apr 2017 /  #3
Please can you define "gains"?
delphiandomine  86 | 17823  
10 Apr 2017 /  #4
Well, let's say you have an ISA of 100,000GBP. Let's say you get 2% interest on that, so 2,000GBP/year. You'll get taxed 19% on the interest that you receive, so 380GBP/year. You could make a contribution to a Polish pension fund to reduce that bill, but payments are capped at something between 5-6000PLN/year.

Unfortunately, the Polish government hates savers.
OP cja  2 | 4  
10 Apr 2017 /  #5
Thanks but it's a stocks and shares ISA. Please read my original post for details.
delphiandomine  86 | 17823  
10 Apr 2017 /  #6
Ah, It's been so long since I've been out of the UK that I'd forgotten that there were two types of ISA and didn't read the post properly, my mistake.

As far as I remember, you'll be taxed if you 'realise' the gain. So if you keep contributing to the fund, you won't have any tax to pay, but let's say you need the money to build a house. You'll get taxed at the moment of taking the 'gain', if that makes sense?
cms  9 | 1253  
10 Apr 2017 /  #7
What Delph says is more or less correct. Note that You are not permitted to make further contributions if you are non resident - essentially you will then be relying on what you have already invested to drive your growth. There are some exceptions if you are in the army etc.

If you have access to the Telegraph website they had some good articles on this a few months ago.

Archives - 2010-2019 / Work / Will Poland tax my ISA?Archived