Does having family in Poland determine your tax residency?

Many taxpayers living and working abroad ask themselves: does the mere fact that my family resides in Poland mean that I am still considered a Polish tax resident?

The answer is not straightforward. The mere fact that a spouse or children live in Poland does not determine that the taxpayer’s centre of personal interests is located there. Determining tax residency requires a comprehensive analysis of the taxpayer’s overall life situation – both personal and professional. It is crucial to have a broad understanding of the concept of ‘centre of personal and economic interests’, which goes beyond family ties and also includes factors such as place of work, social activity, property ownership and plans for the future.

This approach was confirmed by the Provincial Administrative Court (WSA) in Gliwice in its judgment of February 6, 2025 (case no. I SA/Gl 1258/23), which emphasized that the mere residence of family members in Poland cannot be the sole criterion for determining tax residency.

Tax residency

To answer the above question, one must first understand the criteria — as set out in the Polish Personal Income Tax (PIT) Act — that determine an individual’s tax residency. An individual is considered a Polish tax resident if they:

• have a center of personal or economic interests (center of vital interests) in Poland, or
• stay in Poland for more than 183 days during the tax year.

Each of these conditions is assessed independently, which means that meeting either one is sufficient to qualify a person as a Polish tax resident. These rules must be applied in conjunction with double taxation treaties (DTTs) to which Poland is a party.

Tie-Breaker Rules in DTTs

A domestic determination of tax residency under Polish law does not automatically trigger unlimited tax liability in Poland. The relevant DTT provisions must also be considered.

If, under domestic laws, a person qualifies as a tax resident in two countries simultaneously, the tie-breaker rules are applied in the following order to determine tax residency:

• Permanent home – Tax residency is assigned to the country where the individual has a permanent home.
• Center of vital interests – If there is a permanent home in both countries, tax residency is assigned to the country with which the individual has closer personal and economic ties.
• Habitual abode – If the center of vital interests cannot be determined, or if there is no permanent home in either country, tax residency is assigned to the country where the person habitually resides.
• Nationality – If the person habitually resides in both or neither country, tax residency is assigned to the country of citizenship.
• Mutual agreement – If the person is a citizen of both or neither country, the competent authorities of both countries must resolve the issue through mutual agreement.

Previous practice of tax authorities

Until recently, Polish tax authorities placed primary emphasis on the place of tax residence of the taxpayer’s immediate family as the key indicator of the center of personal interests. For example, in an individual tax ruling issued by the Director of the National Tax Information on May 4, 2023 (ref. 0115-KDIT2.4011.146.2023.2.ENB):

The case involved a taxpayer who had been living and working in the UK for many years, earning all income there, and holding UK tax residency, insurance, a driver’s license, and social ties. He visited Poland only occasionally, but his wife and two minor children lived in Poland. He also co-owned a house and owned land and a car in Poland.

Despite strong professional and social ties to the UK, the tax authority concluded that the taxpayer’s center of vital interests remained in Poland. The reasoning included personal and economic connections to Poland — such as the presence of family, marital property, and ownership of real estate and a bank account.

According to the authority, even under the DTT between Poland and the UK, Poland should be recognized as the taxpayer’s country of tax residence due to stronger personal and economic ties.

Tax guidelines on tax residency

This position is reflected in the Polish Ministry of Finance’s tax guidelines from April 29, 2021, on tax residency and the scope of tax obligations in Poland. These guidelines state that the center of vital interests usually relates to having one’s closest family and property in Poland. As stated:

“In practice, the presence of a spouse, partner, or minor children in Poland is the most frequently considered factor. Therefore, relocating abroad with the entire family will, in most cases, result in shifting the center of personal interests to that country. Conversely, going abroad for work while the spouse and children remain in Poland will generally mean that the center of personal interests remains in Poland.”

Changing approach

Tax authorities are now gradually moving away from the narrow approach where the family’s tax residency was decisive in determining the center of personal interests. Increasing importance is given to professional, social, cultural, and civic activity abroad.

Although leaving one’s spouse and children in Poland — while maintaining close ties — still represents a significant personal connection, it is no longer a sufficient condition for concluding that one’s center of vital interests is in Poland. This is especially true when the taxpayer is genuinely integrated abroad and plans to move their family there in the future.

This evolving position is supported by the WSA judgment in Gliwice from February 6, 2025 (case no. I SA/GI 535/24). The case concerned a taxpayer living and working in the United Arab Emirates. Although his wife and children remained in Poland and he contributed to their upkeep, the court held that his center of vital interests was located abroad.

Notably, the facts of this case closely mirrored those of the 2023 Director of the National Tax Information’s interpretation. Yet, while the tax authority had found that the center of interests was in Poland, the WSA emphasized that merely leaving one’s family in the home country — even with ongoing relationships — does not automatically determine tax residency. The court stressed the relevance of technological advancements, which enable continuous contact with family without the need for physical presence in the country.

Conclusion

Determining an individual’s tax residency requires a case-by-case, multifaceted analysis of the taxpayer’s personal and professional circumstances. While the presence of family in Poland is an important factor, it is not a decisive one. Recent case law and the evolving stance of tax authorities underscore the growing significance of other considerations, such as place of work, social engagement, and long-term plans abroad.

If you live and work abroad while your family remains in Poland, you should approach tax residency matters with caution. We strongly recommend consulting a tax advisor to accurately assess your situation and avoid potential misunderstandings or disputes with the tax authorities.

Feel free to contact us – we offer reliable support in assessing tax residency and identifying related obligations in Poland.