With the rise of digital employment, remote contracts, and international relocation, more UK citizens are choosing to live in Poland while maintaining professional or financial links to the United Kingdom. At the same time, a growing number of Polish nationals continue to receive UK income through previous employment, investments, or pensions.
For both groups, managing UK taxes while living in Poland can seem complex. The challenge lies not only in understanding two different tax systems but also in ensuring compliance while avoiding double taxation. Fortunately, with the right information, digital tools, and expert guidance, staying on top of cross-border tax obligations can be straightforward and stress-free.
This guide explains how to navigate UK tax requirements while residing in Poland, covering residency rules, the UK–Poland Double Taxation Agreement, self-assessment obligations, and practical strategies for expatriates and remote workers alike.
1. Establishing Tax Residency
The cornerstone of any international tax question is determining where you are tax resident. Residency dictates which country has the primary right to tax your income, and misunderstanding this can lead to incorrect filings or duplicate tax payments.
UK Tax Residency
The UK uses the Statutory Residence Test (SRT) to determine whether an individual is tax resident. It considers:
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The number of days spent in the UK in a tax year;
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The nature of ties to the UK, such as family, property, or work;
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Patterns of visits and time spent abroad.
Those who spend 183 days or more in the UK during a tax year are automatically considered UK tax residents. However, even fewer days can trigger residency if other connections are significant.
Polish Tax Residency
Under Polish law, you are considered tax resident if:
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You have a permanent home in Poland, or
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You spend more than 183 days per year in Poland.
Polish residents are taxed on their worldwide income, while non-residents pay tax only on income earned within Poland.
Dual Residency and the Tie-Breaker Rules
In some cases, a person may meet residency criteria in both countries. The UK–Poland Double Taxation Agreement (DTA) provides “tie-breaker” rules to decide which country takes precedence, typically based on where your permanent home, vital interests, and habitual abode lie.
2. The UK–Poland Double Taxation Agreement
The DTA between the United Kingdom and Poland exists to prevent the same income from being taxed twice. It outlines how each type of income—salary, pension, property, dividends—is treated between the two jurisdictions.
Key Principles
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Employment income is generally taxed where the work is performed.
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Pensions are typically taxed in the country of residence (Poland for most expats).
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Rental income from UK property remains taxable in the UK but can be reported in Poland with foreign tax credit relief.
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Dividends and interest may be taxed in both countries, but relief is provided to offset the lower of the two tax liabilities.
To apply these provisions, individuals must ensure accurate documentation, tax certificates, and consistent reporting in both systems.
3. Filing UK Self-Assessment from Poland
Even when living full-time in Poland, certain individuals are still required to complete a UK Self-Assessment Tax Return. You must file if you:
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Receive rental income from property in the UK;
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Earn UK-source dividends, capital gains, or pension income;
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Continue working for a UK-based employer remotely;
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Meet the UK residency threshold for part of the year.
How to File from Abroad
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Register online for self-assessment via the HMRC website, using your National Insurance number and Polish address.
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Maintain digital records of all relevant income and expenses.
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Use the DTA to claim relief from double taxation.
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Submit electronically by 31 January following the end of the UK tax year.
All submissions can now be completed online via HMRC’s secure digital portal, meaning distance no longer poses a barrier to compliance.
4. How Different Income Types Are Taxed
Understanding how specific forms of income are taxed under UK and Polish rules is essential for effective planning.
a. UK Property Income
Income from UK rental property remains subject to UK taxation, regardless of your place of residence. Expenses such as letting fees, repairs, and mortgage interest remain deductible.
Under the DTA, Poland also has the right to tax this income, but you can claim credit for UK tax already paid.
b. Pensions and Retirement Income
UK pensions, whether from private schemes, occupational funds, or the State Pension, are generally taxed in the country of residence. For Polish residents, that means declaring and paying Polish income tax on pension receipts while claiming any available relief for UK tax withheld.
c. Employment and Freelance Work
If you work remotely for a UK employer while living in Poland, your income is typically taxable in Poland since that is where your work is physically performed. However, if part of your role requires time spent in the UK, those earnings may remain partly taxable there.
d. Dividends and Investment Income
Dividends from UK companies are subject to UK withholding tax but must also be declared in Poland. The DTA ensures you can credit UK tax against your Polish liability, avoiding duplication.
Investment gains and interest follow similar principles, depending on your residency and source of funds.
5. The Digital Revolution in Tax Management
Digitalisation has fundamentally changed how expatriates manage their taxes. Both the UK and Poland are embracing online systems to simplify tax administration.
UK: Making Tax Digital (MTD)
HMRC’s Making Tax Digital initiative requires individuals and businesses to maintain digital records and submit returns using compatible software. This system increases accuracy, reduces errors, and offers transparency for taxpayers abroad.
Poland: e-PIT and Online Tax Accounts
Poland’s tax authority provides the e-PIT system, allowing individuals to file personal tax returns online in Polish or English. Expats can log in, review pre-filled returns, and submit electronically with secure digital authentication.
Key Benefits of Digital Tax Tools:
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Access to real-time tax data and estimated liabilities.
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Automatic currency conversion for income and expenses.
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Secure storage of receipts and financial documents.
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Faster communication with tax authorities and advisers.
By combining these platforms, expats can manage both tax systems efficiently without physical paperwork.
6. Practical Financial Tips for UK Expats in Poland
Managing taxes across borders is only one part of financial wellbeing. Expats can take several proactive steps to strengthen their financial position and stay organised throughout the year.
a. Separate UK and Polish Finances
Maintaining separate bank accounts for income earned in each country simplifies currency management, bookkeeping, and compliance. It also reduces confusion when claiming relief under the DTA.
b. Track Deadlines in Both Jurisdictions
The UK’s self-assessment deadline is 31 January, while Poland’s personal income tax filing typically closes by 30 Aprileach year. Setting reminders for both ensures timely compliance.
c. Manage Currency Fluctuations
Exchange-rate changes between GBP and PLN can affect reported income. Using digital banking platforms that lock in exchange rates or allow dual-currency transfers helps maintain stability.
d. Build a Tax Reserve
Setting aside funds regularly to cover upcoming liabilities prevents financial strain. Experts recommend reserving around 20–25% of additional income to ensure liquidity when tax payments are due.
e. Review Pension and Investment Strategies
Tax residency can affect pension contributions, inheritance rules, and investment taxation. Reviewing these areas annually ensures your assets are structured for maximum efficiency under current laws.
f. Maintain Accurate Digital Records
Keep digital copies of invoices, receipts, and correspondence with HMRC and the Polish tax office. These records are invaluable during audits or when claiming foreign tax relief.
7. The Importance of Professional Tax Guidance
Even with digital tools and treaty frameworks, international taxation remains complex. Misinterpreting residency, incorrectly allocating income, or missing relief claims can result in costly mistakes.
Professional tax advisers familiar with both UK and Polish systems can:
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Confirm residency status and split-year treatment.
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Apply DTA provisions to allocate income correctly.
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Identify legitimate deductions and credits often missed by automated software.
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Coordinate submissions between HMRC and the Polish tax office.
For individuals seeking reliable, compliant assistance, firms such as My Tax Accountant provide professional support for UK taxpayers living abroad. Their expertise ensures that expats in Poland meet their UK tax obligations while benefiting from every available relief.
8. Balancing Technology and Expertise
Modern expat tax management benefits most from a hybrid approach: digital efficiency combined with expert interpretation.
Technology simplifies data collection, calculation, and submission. Professional guidance ensures that the results are accurate, strategic, and compliant.
This partnership enables taxpayers to:
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Stay compliant in both jurisdictions.
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Optimise tax outcomes across currencies and income types.
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Focus more on career, family, or investments rather than paperwork.
9. The Future of Cross-Border Taxation
As international mobility grows, tax authorities are becoming more connected. The UK and Poland now share data under global transparency agreements, making accuracy and disclosure more important than ever.
In the coming years, expect further developments such as:
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Integrated reporting systems linking tax offices across borders.
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Automated income matching to prevent omissions.
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AI-powered tools offering personalised tax recommendations.
For those who remain informed and proactive, these changes represent opportunity rather than challenge—a chance to take control of financial planning and compliance with greater precision than ever before.
Conclusion
Navigating UK taxes while living in Poland may appear complex at first glance, but the combination of knowledge, organisation, and the right digital and professional support makes it entirely manageable.
Understanding residency rules, using the UK–Poland Double Taxation Agreement effectively, maintaining clear digital records, and seeking expert advice when necessary ensures that expatriates and remote workers remain compliant and financially secure.
In a world where work, residence, and income are increasingly international, mastering tax obligations across borders is not merely an administrative task—it is a cornerstone of long-term financial confidence. With clear planning and modern tools, managing UK taxes from Poland can be less about compliance and more about control, clarity, and peace of mind.
