Exit tax in Poland
To what extent does the exit tax affect individuals who do not run individual business activity?
Exit tax – a phantom tax or a real burden? The global mobility of employees, as well as increasingly widespread investment in various forms of assets, means that taxpayers are more frequently faced with questions about tax consequences that were considered distant and irrelevant just a few years ago. One such topic is the exit tax, or tax on unrealized gains, which has been part of the Polish legal system since 2019. Although the regulations have been in effect for several years, they continue to raise many questions and doubts. Since they apply not only to legal entities or individuals conducting business activity but also to natural persons not running individual business activity, their practical significance cannot be underestimated.
Strefa Pracodawcy 21/2025
Przeczytaj o exit tax w j. polskim
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Exit tax – when does it arise and what does it cover?
Exit tax, which is a tax on unrealized gains, applies in two basic situations:
- When an individual transfers their assets abroad in such a way that Poland loses the right to tax future income from their disposal – this situation typically concerns individuals running business activity.
- When there is a change in the tax residency of an individual, and as a result, Poland loses the right to tax future income from asset disposal – provided the taxpayer has been a Polish tax resident for at least five years within a 10-year period preceding the change of residency.In practice, the exit tax may apply to employees holding shares or stakes in companies who move abroad for work or career development. For individuals, the tax also covers private property.
Regarding private assets, it refers to:
- all rights and obligations in a tax transparent company,
- shares in a company,
- stocks and other securities,
- derivative financial instruments,
- participation units in capital funds.
The legislator has introduced a threshold – the obligation to pay the tax arises when the total market value of assets at the time of losing Polish tax residency exceeds 4 million PLN – it should be noted that in the case of spouses with shared property, this limit applies collectively to both spouses. The tax rate is 19%.
Extension of tax payment deadline (exit tax)
Since the introduction of exit tax regulations in Poland, discussions have arisen regarding their compliance with European Union law. The ATAD directive, based on which the exit tax was implemented into Polish legislation, generally covers taxpayers subject to corporate income tax in a given member state. However, the Polish legislator decided to extend the scope of taxation to individuals, including those not conducting business activities, which caused controversy. Currently, although the exit tax regulations have been in force in Poland since 2019, due to numerous uncertainties, full implementation of their effects on individuals has been repeatedly postponed. The last time was through a regulation dated September 22, 2025.
What does this mean in practice?
A taxpayer changing tax residency and meeting other conditions for exit tax liability must submit a PIT-NZ declaration by the 7th day of the month following the month in which the change of tax residency occurred. At the moment, this does not equate to a tax payment obligation at the same time since the tax payment requirement has been delayed by regulation until the end of 2027. If the taxpayer previously disposes of or otherwise loses assets causing tax liability (e.g., sale, donation, share redemption), they will need to pay the exit tax by the 7th day of the month following the month of asset loss. This is advantageous to the extent it implies tax payment after receiving funds from sale (i.e. after realizing a "gain").
Exit tax before the CJEU – first questions from Poland
The exit tax issue took a new dimension in May 2025 when the Provincial Administrative Court in Warsaw referred preliminary questions concerning Polish regulations on individuals to the Court of Justice of the European Union (CJEU).
The court is asking whether Poland has the right to impose an exit tax based on the increase in asset value that occurred before the taxpayer became a resident of our country, and whether the regulations can completely ignore situations where asset values have decreased, and the taxpayer incurred a loss. The questions also relate to the moment of tax liability emergence – whether it can truly arise upon residency change or only when there is an actual sale and income realization. The CJEU's response will be significant not only for taxpayers but also for employers – particularly those who post employees abroad or offer them compensation in shares or financial instruments. In a broader context, resolving issues concerning exit tax may impact the attractiveness of long-term foreign assignments, especially from the perspective of employees with substantial assets.
Maciej Rosłoński
