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How does Poland decide that you're a resident for tax purposes?

6 Jun 2023 #1
I'm a US-Polish dual citizen with a remote job in tech planning to move to Europe in September. My startup is based in both Sweden and the US, and my employer is very willing to let me live and work in Europe, especially since I won't need a visa to do so. I'm interested in potentially moving to Poland at the beginning for a short while (ideally 8 - 10 months) because I miss it dearly and I'd love to improve my Polish. In fact, I already have a plane ticket to London for early September and can potentially move anywhere in the EU from there. The problem is, I desperately want to avoid paying Polish taxes, as it will cost me around $13,000 more per year than what I pay now. I understand that someone is considered a resident for tax purposes after being in Poland for 6 months. The 2023 tax year shouldn't be a problem, as I'll only be in Poland for about 4 months, but what about 2024? I'm not trying to evade the Polish tax system here or do anything illegal. I'm just concerned because I've heard that leases in Poland are usually a minimum of 12 months. I don't mind living in a different country and paying double rent for a few months at the end of the lease (let's say June-August 2024 if I sign a lease that ends by September 2024). But how does Polish law establish someone's tax residency? I'd hope the government doesn't equate having a lease and paying rent with residency if I'm not physically present in Poland for more than 6 months in 2024. Any advice or insight here would be greatly appreciated!
9 Jun 2023 #2
I'm not a tax expert, but I can provide some general information that may be helpful to you. When it comes to determining tax residency in Poland, it's usually based on the concept of "center of vital interests." This means that if Poland is the country where you have your main personal and economic ties, you may be considered a tax resident there.

While the duration of your stay in Poland is a factor, it's not the only one. Other factors, such as family ties, social connections, and the location of your primary residence, can also be taken into consideration. The exact criteria used to determine tax residency can vary, and it's important to consult with a tax professional or accountant who is knowledgeable about both US and Polish tax laws to get accurate and up-to-date information.

Leasing a property in Poland alone may not automatically establish tax residency, but it can be a contributing factor. If you're concerned about potential tax implications, you should consider consulting with a tax professional who can provide personalized advice based on your specific circumstances and the applicable tax laws.

It's also worth noting that tax laws and regulations can change over time, so staying informed about any updates or changes in the tax legislation of both Poland and the US is crucial to ensure compliance and make informed decisions.

Again, I strongly recommend consulting with a tax professional or accountant who specializes in international taxation to get the most accurate and relevant advice for your situation.

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