Banks & Finances Poland

Some of the most foreigner-friendly banks in Poland:

 

PKO Bank Polski: the largest bank in Poland; offers a wide range of services including loans, mortgages, and savings accounts; has an extensive branch network; provides services in English.

 

Bank Pekao: one of the oldest banks in Poland; offers a simple account opening procedure; provides comprehensive online banking services.

 

Santander Bank Polska: offers a wide range of services for both individuals and businesses; extensive online and mobile banking options; English-speaking staff are often available at branches; simplified account opening process for foreigners.

 

ING Bank Śląski: offers reliable online and mobile banking services; provides services in multiple languages, including English.

 

Bank Millennium: simplified account opening process; contract signing for residents can often be completed via courier, eliminating the need to visit a branch; offers a variety of products and services tailored to foreigners' needs.

Choosing a bank: Select a bank that suits your financial needs. Some banks offer online services for account opening, which can be a convenient option.

 

The basic list of documents required for opening an account may include:

   - Passport or national ID.

   - Document confirming your place of residence (e.g., rental agreement or utility bills).

   - PESEL number (not always mandatory for non-residents).

   - Employment contract or university acceptance letter for students.

 

Depending on the bank and your status (resident or non-resident), you can open an account by visiting a bank branch or completing an online application. Some banks offer identity verification via courier or video call.

After submitting all documents and completing the application form, the bank will verify your information and approve the account opening. This process can take from a few days to two weeks.

 

Important Points

Language support: Most major banks provide services in English, which greatly simplifies the process for foreigners.

Online and mobile banking: Many banks offer convenient mobile apps and internet banking, allowing you to manage your account remotely.

 

Useful Tips

Contact the bank in advance: Before visiting the bank or submitting an online application, contact the bank to clarify all requirements and prepare all necessary documents.

Choosing an ATM: It is better to use ATMs owned by major Polish banks to withdraw cash. These ATMs generally do not charge additional fees for using foreign cards, unlike independent ATMs located in bars or nightclubs.

 

Avoid Dynamic Currency Conversion (DCC): When withdrawing cash with a foreign card, ATMs may offer you the option to convert the currency to your home currency. Always choose to withdraw in the local currency (zloty), as dynamic conversion usually involves an unfavorable exchange rate and additional fees.

 

Fees and Limits: Cash withdrawal fees can vary depending on the bank issuing your card. For example, some banks may charge a fixed fee per transaction, while others charge a percentage of the amount. It is better to know your bank's terms in advance to avoid unexpected costs. In Poland, ATM withdrawal limits are usually between 1200 and 2000 zloty per transaction, but they may vary depending on the specific ATM and bank.

 

Number of Withdrawals: Try to withdraw large sums of money at once to minimize the number of transactions and, consequently, the fees for each one. Some banks offer several free withdrawals per month; for example, Wise provides two free transactions per month, after which it charges 2% of the withdrawal amount.

 

Notify the bank: Before traveling to Poland, notify your bank about your plans to avoid card blockage due to suspicious transactions. This will help ensure uninterrupted access to your funds during your trip.

 

Card Payment Use: Whenever possible, use a card to pay for purchases and services to avoid cash withdrawals and related fees.

Bank Transfer

One of the most common ways to send money abroad. You can transfer money from your bank account to the recipient's account. Bank transfers usually offer the best exchange rate but can be slower than other methods.

 

Online Money Transfer Services

Examples: Wise, XE, PayPal, Revolut.

Advantages: Fast, convenient, and often cheaper than bank transfers. Some services, such as Wise, offer transparent exchange rates and low fees.

Disadvantages: Fees may vary depending on the service and destination country.

   

International Systems 

Examples: Western Union, MoneyGram.

Advantages: Ability to send cash, money can be received at cash pickup points.

Disadvantages: High fees and exchange rates may be less favorable.

 

Important Points

Currency Choice: always choose to send and receive in local currency to avoid additional currency conversion fees (Dynamic Currency Conversion, DCC).

Fees and Exchange Rates: carefully study transfer fees and exchange rates at various services. Specialized services, such as Wise, usually offer more favorable exchange rates compared to banks.

Transfer Limits: some services have limits on the transfer amount per transaction or day, so ensure the chosen service meets your needs.

4Safety: use only verified and reliable services to protect your funds from fraud.

Foreigners can obtain a loan or mortgage in Poland, but certain requirements must be met. 

 

Mortgage

Income in Poland: Most Polish banks require the borrower to have income in Poland. This can be income from an employment contract, self-employment, business in Poland, property rental, or pensions. If you work abroad, getting a mortgage will be more difficult, but exceptions are possible for those who have Polish citizenship or a partner working in Poland.

 

Resident Status: You need to be a resident of Poland or have a residential address in the country. EU citizens require resident registration, while citizens of other countries need a resident card.

 

PESEL Number: Most banks require a PESEL number (Polish identification number), but some banks may proceed without it.

 

Down Payment: A minimum down payment of 10-20% of the property value is usually required. There are programs that allow getting a mortgage without a down payment, but they are less common.

 

Consumer Loan

Foreigners can also obtain consumer loans in Poland. The main requirements include:

- Legal residence in Poland (resident card).

- Proof of income.

- Identity verification.

 

Some financial institutions offer assistance in obtaining a loan for foreigners, helping to gather all necessary documents and improve credit ratings.

Paying for major purchases, such as real estate or a car, in Poland requires certain procedures and knowledge of local laws.

For real estate payments, you can use personal funds or a mortgage loan; the payment is made via bank transfer.

 

A car can be purchased from a dealer or a private seller. When buying from an individual, a transaction tax of 2% of the car's value must be paid. When buying from a dealer, the tax (VAT) is included in the price. For car payments, you can use personal funds, a car loan, or leasing. Services like OTOMOTO Pay are popular in Poland, allowing for quick and convenient financing. A car can be paid for via bank transfer, which is one of the safest ways to pay; in some cases, payment can be made by credit card if the seller accepts it; in rare cases, cash payment is possible.

Deposits

Savings accounts: In Poland, you can open a savings account with a bank that provides a guaranteed interest rate on deposits.

Time deposits: These deposits allow you to lock in an interest rate for a certain term, usually from a few months to several years. Interest rates can reach up to 4.7% per annum depending on the term and amount of the deposit.

 

Investments in stocks

Online brokers: In Poland, many international and local online brokers such as Interactive Brokers, eToro, and XTB offer services. These platforms provide access to trading stocks, bonds, ETFs, and other financial instruments.

Stock market: Investing in Polish stocks and ETFs allows for portfolio diversification and participation in the growth of the Polish economy.

 

Bonds and funds

Government and corporate bonds: Bonds offer stable income with a low level of risk. They can be purchased through brokers or directly from issuers. 

Investment funds: Allow investors to invest in a diversified portfolio of assets. This can be an attractive option for those looking for professional management of their investments.

 

Alternative investments

Real estate: Buying property in Poland can be a good long-term investment. Foreigners can purchase apartments and houses and earn rental income.

Cryptocurrencies: Although cryptocurrencies are highly volatile, they provide an opportunity for significant capital growth. Several platforms, such as eToro and Plus500, are available in Poland for cryptocurrency trading.

 

Recommendations for strategy selection

Professional help: Consider consulting with a financial advisor or using robo-advisors services to help choose the optimal investment strategy considering your goals and financial capabilities.

Tax obligations depend on the tax resident status and the type of income received.

 

Tax resident status

A tax resident is a person who:

- Has a center of personal or economic interests in Poland.

- Stays in Poland for more than 183 days in a tax year.

Tax residents are required to declare all their income, obtained both in Poland and abroad.

 

Non-residents are taxed only on income received in Poland, such as:

- Salaries for work performed in Poland.

- Income from business activities conducted in Poland.

- Income from real estate located in Poland.

 

Personal taxes

 

Income tax: The tax rate is 12% for incomes up to 120,000 PLN and 32% for incomes above this threshold. Tax returns are filed by the end of April of the following year.

 

Social contributions:

 Social security contributions are 20.48% for the employer and 13.71% for the employee.

  Health insurance contributions are 9% and are not deductible from tax.

 

Tax benefits: Foreigners can take advantage of various tax benefits, such as joint filing with a spouse, deduction of social and health contributions, family, and internet allowances.

 

International taxation aspects

 

Double taxation: Poland has signed agreements to avoid double taxation with many countries, to prevent double taxation of income.

 

Capital income: Capital income, such as dividends and interest, is taxed in Poland at a rate of 19%. Provisions of international tax agreements are applied to reduce the tax burden.

 

Rental income: Rental income from properties located abroad must be declared in Poland. Tax obligations depend on the provisions of international agreements to avoid double taxation.

 

Registration and reporting:  For filing tax returns and fulfilling tax obligations, you must have a PESEL or NIP number.

 

Therefore, foreigners living and working in Poland should carefully monitor their tax obligations to avoid fines and other sanctions. It is recommended to seek advice from tax consultants to properly meet all the requirements of Polish law.

Foreigners residing and working in Poland are required to submit tax declarations to comply with the country's tax laws. Here are the key aspects of the tax declaration process:

 

Tax residency status: Tax resident / non-resident.

 

Tax residents are obliged to declare all their income earned both in Poland and abroad. Non-residents are taxed only on income earned within Polish territory.

 

Tax declaration process

 

Submission deadlines: Annual tax declarations must be submitted by April 30 of the year following the tax year in question.

 

Forms for submission:

The most common form for individuals is PIT-37, which covers income from employment, rent, and other sources.

Self-employed individuals may use forms PIT-36 or PIT-28 depending on the specifics of their activities.

 

Online declaration:

The e-PIT platform allows for online submissions. The platform is available in both Polish and English languages. To access the system, you can use a bank account, a trusted profile, or tax information such as PESEL and income data.

Declarations are automatically filled out based on data provided by employers and require only verification and confirmation.

 

Documents: To submit a declaration, you need documents proving your income (e.g., PIT-11 from the employer), as well as data about taxes and social contributions paid.

 

Potential penalties: Failure to comply with tax declaration or tax payment obligations can lead to fines and other sanctions, including the inability to legalize your stay in Poland (obtain a residence permit).

 

Additional advice

Consultations with tax specialists: Tax legislation can be complex, especially for foreigners. It is recommended to seek assistance from tax consultants to properly fulfill all requirements.

Checking the relevance of information: Ensure that you are using up-to-date tax forms and instructions, which can be found on the Polish Ministry of Finance website.

Self-employed individuals and freelancers in Poland can choose between registering as a sole proprietorship or working under a contract with a company. Important steps include obtaining a PESEL number and a NIP, which are necessary for tax reporting and interaction with government agencies.

 

PESEL (Personal Identification Number): It can be obtained through registration at the place of residence or at a municipal office.

NIP (Tax Identification Number): This number can be obtained by filling out a relevant form and submitting it to the tax office.

 

Freelancers can work under two types of contracts:

Contract of mandate: This contract does not include payment of social and medical contributions by the employer.

Contract for specific work: This contract includes payment of social and medical contributions, making it more attractive for long-term work.

 

Tax rates and reporting

Flat tax rate: A flat tax rate of 19% applies to self-employed individuals.

Progressive taxation: For those working under a contract, tax rates range from 17% to 32% depending on income.

 

Social and medical contributions

Self-employed individuals are required to pay contributions for social insurance and medical insurance. These contributions include payments for pension, accident insurance, illness insurance, and medical services. Payments are made monthly.

 

Benefits for the self-employed

Tax deductions: The self-employed can take advantage of various deductions, including business expenses, equipment depreciation, and education expenses.

Simplified accounting: The ability to maintain simplified accounting for small entrepreneurs, which reduces administrative burden.

 

Special visas for freelancers

There is a special type D visa for freelancers and digital nomads in Poland, which allows them to work and reside in the country. To obtain this visa, proof of income, medical insurance, and a temporary residence address must be provided.