Archive for the ‘residency’ Category

Am I now a UK or Poland resident for tax purposes?

Wednesday, September 17th, 2008

Residency for tax purposes

It’s important to determine whether you are Polish or UK resident because that will determine where your taxes are due and whose health insurance system you fall under. The rule of thumb is that if you are in an EU country for 6 months or more then you are resident there.

If you are UK resident then:
* you continue to pay your taxes in the UK
* you pay national insurance in the UK
* you can get a European Health Insurance Card from the NHS to cover medical bills in Poland

If you are resident in Poland then:
* you will now fall under the Polish tax system. The tax bands are lower than those in the UK and your GLOBAL INCOME is taxable, NOT JUST MONEY YOU EARN IN POLAND!
* you will pay social insurance to ZUS
* ZUS can give you a European Health Insurance Card which you should use when you are back in the UK

What happens if I move to Poland?

In theory when you decide you are ‘resident’ in Poland you should inform the authorities accordingly. That means you tell the Inland Revenue you have left the UK and they will calculate whether they owe you any tax back or not. If you start working for a Polish company then they will sort out your tax and ZUS for you. If you were self-employed in the UK then you need to talk to an accountant. You may decide to open a new Polish company, or you may decide to register your UK company as an employer in Poland so that it can pay social insurance for you.

What happens if I work in the UK during the week but return to Poland at the weekends?

In situations such as this it comes down to defining your ‘place of living’. If you stay in hotels during the week but your house is in Poland that’s one point for Poland. If your family (spouse, kids etc..) live in Poland that’s another point for Poland. If you spend your spare time in Poland, again that counts as living in Poland. If you think your situation is arguable then you can ask the Polish tax office (Urząd Skarbowy) to make a ruling. An application for a ruling is free of charge. You describe your situation and put your point of view in it. They have 3 months to rule. If they don’t rule within this time then your point of view prevails and is binding for all tax offices in Poland.

What happens if I don’t become resident in Poland?

Probably nothing for a while. But you might get a knock on the door one day from the tax office. You run the risk that they will rule you as a Polish resident and give you a backdated tax bill for your global income. Having said that, Poland has tax agreements with most countries so that you are not charged twice for tax. But I don’t know if there are any penalties involved or if there would be a tax bill still due to differences in tax bands etc.. If this has happend to anyone I would be keen to hear about it!

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Getting Polish Citizenship

Monday, June 23rd, 2008

As I have already posted in my blog about getting a karta pobytu, I found out that as I have Polish blood I may well have Polish citizenship and therefore was supposed to go to the Urząd Województwa in Kraków to present myself. For those of you in małopolskie go to:

room 354 on the 3rd floor
Urząd Województwa
ulica Basztowa 22
Krakow

It’s a huge impressive old building not far from the main train station. The guy there was very very helpful and told me that the first thing I need to do (and one of the fundamentals for getting most things done in Poland regarding identity) is to get my birth certificate registered in Poland.
That is easier said than done because British birth certificates don’t have all the information that goes on a Polish birth certificate. Also, I restored my Grandfather’s name by Deed Poll a few years ago, and Polish law doesn’t seem to recognise or have any provision for British Deed Polls.

After that it’s a case of filing the application. You have to provide a passport photo and the kind of information needed for a karta pobytu such as proving you have means to live in Poland etc.. etc.. Of course you need to provide originals (with certified translations where appropriate) of all documents required to show you are of Polish descent. If you don’t have originals (as in my case) then basically you just give them what you do have and explain the situation, it’s then there task to investigate.

Simple cases where all documents are in order take a few months, most cases take over 2 years.

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Foreigners in Poland – registration “zameldowanie”

Thursday, February 28th, 2008

Thanks to Paweł from Polandian for his comments which I have used to update this blog post.

One of the biggest shocks about living in Poland for the average foreigner has got to be the bureaucracy. In fact if I have to list 3 downers about living here they would be:

  1. Unbelievable amount of bureaucracy to do anything in day to day life (register a car, buy a house, get a mobile phone, open a bank account, do anything at the post office…)
  2. Lack of indian and chinese take-aways.
  3. Did I mention the bureaucracy?

Unfortunately if you decide to live here (or already are) you will have to resign yourself to the fact that that is just the way it is and take it on the chin. The Poles don’t like it either and allegedly are slowly making things better. In fact because the procedures for doing things are in the process of change that can often add to the confusion – very often you are given out of date information or told different things by people or offices.

Anyway the first thing you will need to do is something called registration (zameldowanie). In what seems to me like an unreasonable breach of civil liberties you are legally required to be registered to an address to live here. If you aren’t registered then effectively you are just a tourist in Poland and not living here.

Many expats live in Poland for a long time and don’t bother to register – I didn’t until I had been here for at least 6 months. I have been told that it is legally compulsory but I don’t see how the authorities have any way to check how long you’ve been here or whether they even care that much about it.

So why register at all? Simply because at some point you might want to work here or buy a car or rent a flat and if you aren’t registered then you won’t be able to.

[UPDATE - I have been assured that you don't need to be registered to rent or buy property or to work locally. You don't need to be registered to by a car but you do if you want to register it to your name in Poland]

There are two types of registration – temporary (tymczasowy) or permanent (na stałe). As foreigners we aren’t currently allowed to register permanently. I know we are supposed to all be in the EU now, but it doesn’t feel that way.

[UPDATE - don't listen to the voices! Apparently if you have a karta pobytu then you can indeed register permanently according to the council in gdynia]

You can register temporarily for a maximum period of 3 months. That means every 3 months you will have to re-register. I have been told that I can register for up to 5 years but to do that I have to go to Kraków and frankly I can’t be bothered at the moment with the journey.

To register or re-register you will need to:

  • personally go during office hours (usually 8am – 4pm Mon-Fri) to the local town hall (urząd gmina) and find the office where they do registrations (zameldowanie).
  • take your passport
  • take with you the landlord or owner of the address at which you need to register – they need to sign that they agree for you to live there
  • take with you someone who speaks Polish if neither of you do. Don’t expect anyone to speak English, but be suprised if they do.

Don’t ask what happens if you work during office hours, are ill in hospital or elderly. The concept of dealing with these matters by post or internet is about as remote as me flying into space with a london oyster card.

Also don’t ask what happens if you don’t have anyone to sign you on to their address. If you are going to be renting a flat then this will be part of the procedure (and this also gives the landlord the power to evict you very easily by revoking your registration).

[UPDATE - an authorative source tells me that you don't necessarily need your landlord or property owner with you in person - if you have written entitlement to the property than that should suffice. In my experience that didn't work at my urząd miasta, but the next time I go to re-register I will try and do it with just my legal documents and will be ready to argue!]

When you do your registration they will ask you lots of apparently random questions such as what your parent’s names are. I don’t know why. Maybe if you’re naughty they will send a note home to them.

Finally expect a queue and to lose at least part of your day (if not all of it). That way if it only takes you an hour or so you will be pleasantly suprised rather than incredibly annoyed.

Let me know if you have anything to add, or what your experience of “zameldowanie” is like….

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