Remote Work in Poland: Tax Tips for B2B Contractors

Working remotely as a B2B contractor in Poland offers great flexibility, but the tax landscape can be complex. Here's what you need to know: ## Flat Tax vs. Progressive As a sole proprietor, you can choose flat 19% income tax or progressive (12%/32%). For most developers earning over 120,000 PLN/year, flat tax is more beneficial. ## Health Insurance Since 2022, health insurance contributions depend on your income and chosen tax form. Budget 9% of your income on the flat tax scheme. ## VAT Considerations If you work exclusively for foreign (EU) clients, you may be exempt from Polish VAT under the reverse charge mechanism. ## Deductible Expenses Home office costs, equipment, software subscriptions, co-working spaces, and business travel are deductible. Keep all invoices. ## IP Box Regime Developers creating original software can apply the 5% IP Box tax rate on qualifying income. Consult a tax advisor to set this up properly.