Recover your foreign tax refund

A foreign tax refund is the result of filing a tax return, that is, a procedure connected with recovering overpaid income tax that was collected by a foreign tax office during legal employment or business activity. In many European Union countries and beyond, the tax system provides for the possibility of recovering part or all of the tax paid if the employee's annual income did not exceed a specified threshold or if they are entitled to tax reliefs. This situation often occurs when: the employee was employed only for part of the year (for example seasonally), their income was too low to be fully taxable, they incurred additional employment-related costs (for example commuting, accommodation), they maintained a so-called double household, or they had children, which entitled them to family benefits and reliefs. The amount of tax paid abroad by the employer may vary significantly - in some cases no tax is deducted at all if there is no such obligation. For this reason, a foreign tax settlement does not always mean a refund and may sometimes involve the need to pay an additional amount. Both the actual amount of tax paid and its proportion to the total income earned in a given year are crucial here. A foreign tax refund is not granted automatically - it must be obtained by filing the appropriate tax return in the country where the work was performed. Once it has been reviewed, the foreign tax office refunds the overpaid part of the tax directly to the indicated bank account. We will accurately recalculate your foreign income and check what amount of tax was deducted abroad. We will also analyse the costs you incurred. Based on the documents provided, we will prepare a precise calculation showing the amount of foreign tax refund you may receive.

To obtain a foreign tax refund, you need to go through several key stages: Gathering the required documents - the basis for obtaining a foreign tax refund is completing the appropriate documents confirming legal employment and income earned. Depending on the country, these may include: tax cards, payslips, a certificate of income from the Polish tax office, etc. Filing a tax return - after gathering all documents, a tax return must be prepared and filed with the appropriate foreign tax office. Depending on the country, it may be possible to file the return online or on paper. Completing additional forms - sometimes the foreign office may request missing data, additional documents or explanations. It is worth monitoring correspondence on an ongoing basis so that no deadlines are missed. Waiting for the decision and transfer - after the tax return has been reviewed positively, the tax office issues a refund decision and transfers the amount due to the indicated bank account. If you are not sure how to complete the return correctly or want to avoid errors, it is worth using the help of specialists. Send us your documents by email or visit one of our Customer Service Points, and we will guide you through the tax settlement process quickly and efficiently and help you obtain a foreign tax refund.

To successfully apply for a foreign tax refund, it is necessary to complete the appropriate set of documents confirming both income earned and costs incurred in connection with working abroad. Required documents may vary depending on the country where you worked, but the following are most often needed: Documents confirming the amount of income and tax paid: - Lohnsteuerbescheinigung (from Germany), - Jaaropgaaf (from the Netherlands), - P60/P45 (from the United Kingdom), - Lohnzettel (from Austria), - payslips if there is no annual tax card, - annual income and cost summaries in the case of a company settlement. Tax identification number - some countries may require a tax identification number (for example NIN in the UK, BSN in NL, Steuernummer/Identifikationsnummer in DE). Confirmation of registration of residence - the address and period of registration must be provided. Certificates of benefits received - information about the annual amount of benefits received, such as sickness benefit (Krankengeld), unemployment benefit (Arbeitslosengeld), etc. Documents confirming costs incurred - needed if requested by the tax office, for example: - accommodation bills, - tickets or invoices for commuting to work (for example fuel, public transport), - insurance fees, - certificate of ZUS contributions paid in Poland. Bank account number - indication of the account to which the foreign tax refund is to be transferred. A well-prepared complete set of documents significantly speeds up the foreign tax refund process and reduces the risk of a request for supplements. It is worth checking the requirements of the tax office in the relevant country in advance, as even minor omissions may delay the payment of funds.

No, having a foreign currency account is not mandatory in order to receive a foreign tax refund. Most foreign tax offices make transfers to bank accounts in the SEPA system, that is, within the Single Euro Payments Area. This means that if your account in Poland has an IBAN number and a BIC/SWIFT code, money can be transferred directly to it - even if it is an account in Polish zlotys (PLN). However, it is worth remembering that foreign tax offices pay tax refunds in the currency of the country where the income was earned - for example in euros or British pounds. If the funds are transferred to an account held in Polish zlotys, the bank will automatically convert the transfer. And this is where an important issue arises: the currency conversion rate used by commercial banks is often not very favourable, and additional fees connected with currency conversion may also be charged. In practice, this may mean a real loss of even several dozen or several hundred zlotys for higher tax refund amounts. Therefore, although it is not required, having a foreign currency account in the currency corresponding to the country of employment may be cost-effective. This allows you to avoid an unfavourable exchange rate and decide for yourself when and where it is best to exchange the funds received. In summary: You do not need a foreign currency account to receive a foreign tax refund. Payment will be made in a foreign currency. Currency conversion by the bank may be unfavourable. A foreign currency account allows you to retain full control over the exchange rate.

These agreements regulate in which country income should be taxed and how to avoid double taxation. They may also affect how the refund is calculated or exclude the obligation to pay additional tax in Poland. A double taxation agreement (DTA) is an international agreement concluded between two countries - for example Poland and Germany, the Netherlands or Austria - whose purpose is to protect taxpayers from having to pay tax on the same income in both countries at the same time. In the context of a foreign tax refund, this agreement plays a key role because: If you work abroad, income from that work is usually taxed in the country where you perform the work. The DTA specifies that Poland does not collect additional tax on this income (or applies an appropriate method, for example the exemption with progression method). Although income earned abroad may be exempt from tax in Poland, it often has to be shown in a Polish tax return. This is relevant, for example, when determining the percentage rate for taxing other income taxable in Poland (the so-called exemption with progression method). Thanks to the provisions of the agreement, the taxpayer - despite earning income abroad - will not be charged additional tax in Poland on the same source of income, provided the conditions set out in the DTA are met. The rules arising from the agreement may affect, for example, whether and in what form foreign tax reliefs, tax-deductible costs or family circumstances can be taken into account. The DTA also regulates the exchange of information between offices and helps avoid problems resulting from the lack of clear taxation. In summary, double taxation agreements protect against excessive tax burden and ensure that income earned abroad will not be taxed again in Poland. Knowing the specific agreement in force between Poland and the country of employment is very important when applying for a foreign tax refund and filing a tax return - it affects both the settlement method and the possibility of obtaining the highest possible tax refund.

Yes, in many cases it is necessary to include foreign income in a Polish tax return - regardless of the fact that the tax has already been paid abroad and that you are entitled to a foreign tax refund. This obligation results from the so-called unlimited tax liability in Poland, which applies to people who have their place of residence in Poland (centre of vital interests). If you work only in Poland, the office will automatically settle your income tax by choosing the simplest settlement method, for example without taking tax reliefs into account. If you work abroad but the centre of your family, professional or financial life is still in Poland, you are a Polish tax resident. In this situation, you are obliged to show foreign income in your annual PIT return - even if you do not have to pay tax on it in Poland. Whether and how foreign income should be settled in Poland depends on the type of agreement concluded between Poland and the country of employment. There are two main methods: Exemption with progression method - foreign income is exempt from taxation in Poland, but it affects the determination of the tax rate for other income taxable in Poland. Proportional deduction method - foreign income is also taxable in Poland, but tax paid abroad can be deducted (double taxation is avoided through offsetting). It is worth noting that the mere fact of receiving a foreign tax refund does not automatically create a tax obligation in Poland. The obligation concerns rather the foreign income itself, not the refund. However, if you file a PIT return without including foreign income (despite such an obligation), you may expose yourself to tax proceedings or a correction by the Polish office. Contrary to appearances, showing foreign income does not always mean paying additional tax in Poland. Often - especially under the exemption with progression method - you will not pay a single zloty in Poland, but you will complete the formalities and avoid problems with the tax office. In short: income earned abroad that forms the basis for a tax refund usually has to be shown in a Polish tax return if you are a Polish tax resident; this means filing a PIT36 ZG return. The form of settlement depends on the double taxation agreement between Poland and the country of work. It is worth consulting specialists in order to settle correctly in Poland and avoid consequences from the tax office. We invite you to contact our office by phone or email, or through our numerous Customer Service Points throughout Poland.

Settling income earned abroad, and therefore also applying for a foreign tax refund, is mandatory in many cases - especially if you are a tax resident in Poland. This applies to people who worked legally abroad and had income tax advances deducted, regardless of whether this was seasonal work, posted work or a longer contract. It is worth settling for several reasons. First, you may recover overpaid tax - advances are often collected in excessive amounts, especially if you did not work for the whole year or you are entitled to tax reliefs. Second, you avoid problems - many countries require a tax return to be filed even if there is no obligation to pay additional tax. Failure to settle may result in penalties. In Germany, the deadline for filing a tax return is 31 July for the previous tax year. It is possible to settle up to 4 years back, but it is worth not waiting, especially if you are entitled to a foreign tax refund - the sooner you file your return, the sooner you will receive the funds due. In Austria, the deadline for filing a tax return for people obliged to settle is 30 June for the previous year. You can do this up to 5 years back. In the Netherlands, the standard deadline for filing a return for people not registered in the Netherlands is 30 June. As in Austria, a tax return can be filed up to 5 years back, but in all three countries it should be borne in mind that the tax office may impose penalties for delay. In the United Kingdom, the tax year runs from 6 April to 5 April of the following year, and tax settlement is not mandatory (the obligation applies only to self-employed persons or those running a business in the UK). The deadline for filing a paper tax return is 31 October. If you are entitled to a tax refund, you can apply to recover it for up to 4 tax years back, so in 2025 this is possible for the tax years 2024/2023, 2023/2022, 2022/2021, 2021/2020. It is worth acting earlier to avoid losing the right to a foreign tax refund. Settling income and therefore applying for a foreign tax refund is not only an opportunity to recover money, but also a way to fulfil obligations towards the tax authorities and protect yourself against possible legal consequences.

To increase the amount of a foreign tax refund, it is worth using available tax reliefs and the possibility of deducting costs, which in many countries significantly affect the final settlement amount. The most commonly included costs primarily include expenses connected with maintaining a double household (doppelte Haushaltsführung). This situation occurs when you work abroad but the centre of your private life (family, permanent place of residence) remains in Poland. You can then deduct, among other things, the costs of renting accommodation, service charges and travel costs between the workplace and the family home. Daily commuting costs are also taken into account. If you commute by your own car, you can include a specified mileage rate. In some cases, receipts for public transport tickets or fuel invoices are also accepted. Social and health insurance contributions are also an important group of costs if they have not been automatically included in the tax system - this happens in the case of employees posted to work in Germany by a Polish company whose insurance continues to be paid in Poland. In such a situation, the employer should be asked to issue an appropriate certificate showing the amount of contributions paid.

Yes, it is important that all costs are supported by documents - receipts, tenancy agreements, certificates from the employer, transfer confirmations, etc. Well-documented costs increase the chance of a favourable settlement and a higher foreign tax refund. The foreign tax office does not have to, but may ask the taxpayer to present documentation confirming the declared tax reliefs, and failure to provide the required documents may result in the relief being rejected. Each country has its own regulations and limits, so it is worth using the help of specialists. If you have doubts about the costs you can show in your tax return, contact our office and we will help you determine what can be deducted in a given tax system and therefore how to obtain the highest possible foreign tax refund.

The waiting time for a foreign tax refund depends on several factors, such as: the country from which we apply for the refund, the workload of the local tax office, the completeness of documents and any requests for supplements or explanations. In most European countries, the standard waiting time is 3 to 6 months, counted from the date of submitting a complete application. However, in practice this time may be extended, especially during periods of increased tax return filing (for example in spring) or if the tax office has doubts and requests additional certificates, explanations or corrections. For example: In Germany, the tax office has up to 6 months to review a tax return, but if the case requires additional explanations, this deadline may be extended. In the Netherlands, the procedure can be more time-consuming - a tax refund is often made after 6-8 months, and sometimes even later if questions arise from Belastingdienst. If the settlement concerns several years back, the procedure may be additionally extended. In Austria, settlement can be expected within 2-6 months from filing the return, but, as with other countries, the Austrian tax office may ask additional questions about the submitted tax return. In the United Kingdom, for paper applications the waiting time is 3 to 6 months. An additional factor affecting the length of the wait is whether the documentation was submitted correctly and completely from the beginning. Any inconsistency or missing confirmation may result in a request for supplementation, which automatically extends the procedure.

The cost of settling tax from abroad depends primarily on the country where you worked and the type of employment. Our office offers transparent, fixed service prices that are adapted to the scope and complexity of the settlement. For individuals working abroad under an employment contract, the following rates apply: Tax settlement from Germany: - 500 PLN for individual settlement - 600 PLN for joint settlement of spouses Tax settlement from the Netherlands: 400 PLN Tax settlement from Austria: 500 PLN Tax settlement from the United Kingdom: 500 PLN For people running a sole proprietorship of the German Gewerbe type, the settlement cost is 900 PLN due to the more complex nature of the documentation and the scope of tax analysis. We also offer comprehensive support for Polish construction companies providing services in Germany. In this case, details are available in our current price list. Each settlement is carried out carefully and with consideration of possible reliefs and costs that may increase the foreign tax refund.

Freistellungsbescheinigung is a certificate issued by the German Tax Office (Finanzamt) that exempts a company from the obligation to withhold 15% construction services tax (Bauabzugsteuer). Without this document, the German contractor is obliged to reduce each invoice payment by 15% and transfer that amount to the Finanzamt. The certificate is issued for a maximum of 3 years and requires a new application after its validity expires. For construction companies working regularly in Germany, this is one of the most important documents - details can be found on the Freistellungsbescheinigung subpage.

Freistellungsbescheinigung is a certificate issued by the German Tax Office (Finanzamt) that exempts a company from the obligation to withhold 15% construction services tax (Bauabzugsteuer). Without this document, the German contractor is obliged to reduce each invoice payment by 15% and transfer that amount to the Finanzamt. The certificate is issued for a maximum of 3 years and requires a new application after its validity expires. For construction companies working regularly in Germany, this is one of the most important documents - details can be found on the Freistellungsbescheinigung subpage.

Theoretically yes, but in practice it is risky. German HR and tax regulations differ significantly from Polish regulations, there are a dozen or so different offices involved (Finanzamt, Zollamt, SokaBau, Berufsgenossenschaft, Krankenkasse), and most documentation must be kept in German. Errors in working time records, VAT returns, SokaBau notifications or Mindestlohn calculations may result in penalties of up to EUR 500,000. For companies regularly posting employees, outsourcing the service to specialists is usually cheaper than the risk of an error.