Poland

IT Industry

The Polish market is showing an enormous appetite for new IT solutions. With companies realizing that they must have modern IT systems to remain competitive, more advanced enterprise software applications has become in high demand. The enterprise application segment is the most growing. These are supply chain management, computer-aided manufacturing, workforce management, fleet management, customer relationship management and enterprise resource planning. ERP is being deployed primarily to support the large manufacturing base in Poland, but also increasingly in retail. However, there are substantial opportunities in administrative type solutions such as HR, finance and accounting solutions across all sectors.

Visas

Most expats moving to Poland for work purposes will apply under the Type A work permit. This visa is for foreigners who work in Poland under a contract with an employer whose registered office, place of residence, branch, facility or another form of business is located in Poland. To get a work permit for Poland, it is first necessary to get “permission to work” from a voivode office, the provincial government office. The employer must make this application, and it must be made to the office in the district where the expat aims to take up employment.

Work permits are issued for a maximum of three years, at which point they can be renewed accordingly. One large restriction that many expats are unaware of is the fact that work permits for Poland are job- and employer-specific. Thus, if during his or her time in Poland an expat wishes to change jobs, it’s necessary to reapply for a work permit.

Taxes

Poland has a progressive tax rate system for Personal Income Tax (PIT), under which individuals are taxed between 19% and 40% of their income. Foreign nationals working in Poland must register for tax and obtain an NIP number (tax identification number).

The tax status of foreign nationals working in Poland depends on the amount of time they spend in the country during the tax year (a calendar year), and the nature of their employment contract.

Permanent residents and expatriates who live in Poland for more than 183 days in the tax year have an unlimited tax liability and are taxed on their income from all sources worldwide. The personal income tax rates are progressive at rates of 18% or 32%, although individuals carrying out business activities may opt for special rules under which a 19% tax rate applies (with certain limitations regarding some allowances).

Cost of living

The cost of living in Poland is relatively low in comparison to many other European countries. Obviously, expats in the main cities will have higher living costs than they would in more rural areas.

You can expect to pay about €446 for monthly rent for a 45 m2 (480 Sqft) furnished studio in the common area of Warsaw, Poland. With €50 for utilities for one month (heating, electricity, gas) for one person in 45 m2 (480 Sqft) studio.

Monthly ticket public transport will cost you €26, or €1.04 for 1 liter of gas if you drive.

Basic dinner out for two in neighborhood pub will cost you around €18; 2 tickets to the movies about €12; 1 beer in neighborhood pub (500ml or 1pt. – €1.99);

Primary lunchtime menu (including a drink) in the business district – €6.

Ireland scored 100 points of cost of living index, comparing to 272 points in San Francisco, USA and 67 points in Kiev, Ukraine. (According to Internet research expatistan.com).

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