Over 25,000 using Poland's income tax relief for those returning from emigration

More than 25,000 people in Poland are claiming a special tax relief designed to encourage Poles living abroad to come home. The scheme grants those who return after spending at least three years abroad a four-year exemption from personal income tax on annual earnings of up to PLN 85,500 (€20,061).

The number using the scheme has risen sharply since it was introduced under the former government in 2022. But experts say it remains relatively small compared to the overall scale of migration flows.

According to finance ministry data published by Rzeczpospolita , a leading daily, 8,300 people benefited from the tax relief in 2022. The following year, the number nearly doubled to 16,300 before rising to 25,100 last year.

While the newspaper claimed that nearly 50,000 people have benefited from the tax break so far, the finance ministry confirmed to Notes from Poland that its aggregate data cover both first-time claimants and those continuing to benefit from the relief in subsequent years.

The policy was introduced by the former Law and Justice (PiS) government as part of its flagship “Polish Deal” tax reform . It was intended to encourage Poles living abroad to return to Poland, as the country experiences labor shortages amid record-low unemployment .

The measure can be used not only by Polish citizens, but also holders of the “Pole's Card” ( Karta Polaka, issued to foreigners with Polish roots) as well as citizens of other EU and EEA states and of Switzerland.

However, applicants must have lived in Poland for at least five years before spending a minimum of three years abroad and then returning.

The relief can be claimed only once. Taxpayers who use the scheme and then emigrate again cannot apply a second time, even if they later return again. Eligible income includes employment contracts, self-employment, commission contracts and parental allowance.

Poland has a centuries-long history of mass emigration. After joining the European Union in 2004, hundreds of thousands more Poles moved abroad.

But recent data suggest the trend is beginning to reverse. Many Poles have been coming back in the past years, with Brexit a key factor in departures from the UK . Last year, for the first time on record, more people returned from Germany to Poland than emigrated in the other direction.

Analysts point to Poland's booming economy – which has grown faster than any other EU state over the last three decades – as a factor driving returns. Its unemployment rate is one of the lowest in the bloc and wages have been rising rapidly .

According to Statistics Poland (GUS) data, the number of Poles living outside the country for at least three months peaked at 2.54 million in 2017, since when it has been on a downward trend.

Izabela Grabowska, a sociologist at Kozmiński University, told Rzeczpospolita that around 300,000 Poles may have returned between 2017 and 2024.

According to the newspaper, the lower much numbers taking advantage of the tax relief scheme might be related to the fact that some Poles moved abroad again shortly after returning, while others may have lacked knowledge of the scheme or the required documentation proving tax residence abroad.

Grabowska also notes that “decisions [to return] are most often family-related and less often professional.”

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