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American camgirl considering moving to Poland for a few years. Taxes?


randomwoman
29 Jul 2020   #1
Hello. My questions pertain to paying taxes as a self-employed resident/non-citizen in Poland. If I moved to Poland I would be living in Poland for maybe 3 years.

Here in the United States I am considered an independent contractor. I am sent a 1099 by a U.S. based company and paid in USD. I earn around $100,000 USD a year. I have no boss, and I work remotely from anywhere so all I need is a computer and an internet connection. These are my questions:

1. When arriving in Poland will I have to register as self-employed somewhere or something? I do not own a business so it is not done this way in the U.S.

2. Based on my current earnings about what percentage should I expect to be setting aside for when I file my taxes as a Polish resident? I understand that I would be paying 15.3% to the US in self-employment taxes, and that if I make sure that I qualify for the foreign earned income exclusion (FEIE) the rest of my taxes will be paid to Poland. I just do not know what rate I will be taxed at or what taxes I will likely be held accountable for when paying the Polish government.

Please do not feel pressured to give me an exact answer as I realize you can not. Just a likely percentage in answer to question number 2 would be very helpful. Ty!
delphiandomine  86 | 17823
29 Jul 2020   #2
1) Yes, you will. I'd strongly advise getting an accountant with experience in this field, as it's likely that most accountants won't understand the specifics of your business, particularly relating to legitimate business costs.

2) Set aside ~$300/month USD in social insurance taxes (it will be less to begin with, but this gives you a good idea of what to expect) plus 19% flat income tax.

However, will you have to pay the 15% to the US if you're not tax resident there? My American friend here is self employed, and she doesn't pay that.
Lazarus  2 | 429
29 Jul 2020   #3
However, will you have to pay the 15% to the US if you're not tax resident there? .

She won't. But she will have to file a statement of income earned and tax paid.
OP randomwoman
29 Jul 2020   #4
@delphiandomine
I may be misinformed about the 15% income tax owed to the US but an American tax preparer told me that I would still owe it being a U.S. citizen. I will have to ask more about why someone may not be having to.

Ty for the tips. Much appreciated!
delphiandomine  86 | 17823
29 Jul 2020   #5
but an American tax preparer told me that I would still owe it being a U.S. citizen.

Basically, you're covered by this - ssa.gov/international/agreements_overview.html - you don't have to pay self-employment taxes as there's an agreement between PL and the US on this matter. I'd give the IRS a call directly and ask about it, but it seems to me that you're exempt from those taxes because of the bilateral agreement between the two counters.
Lazarus  2 | 429
29 Jul 2020   #6
you're exempt from those taxes

Not exempt, she just gets full credit for tax paid in Poland. As that'll be higher than the tax in America, she won't owe any taxes there.


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