Relocation of Ukrainian citizens and companies to Poland

Polish government on 7.03.2022 presented new legal act that is intended to help to Ukrainian citizens and companies in relocation to Poland. The new law has not yet been enacted by the Parliament, however it is expected to be processed on fast track.

At the moment – the act is intended to enter into force with past effect, i.e. from 24.02.2022.

New piece of law is strongly modifying Polish immigration rules allowing Ukrainian citizens to enter to Poland, work, and open business without special permits.

Crossing the Polish boarder by Ukrainian citizens

Ukrainian citizens are welcome to cross Ukrainian – Polish border. The government introduced number of simplifications that allow to cross the boarded even the citizens who are not in possession of valid ID's or documents conforming their identity.

Legalization of stay of Ukrainian citizens in Poland

COVID-19 quarantine requirement is lifted. Ukrainian citizens my stay in Poland based on the stamp in the passport or a certificate issued by the Polish Border Guard upon entry to Poland. New law allows Ukrainian citizens to stay in Poland for 18 months without any particular permit. After 9 months of stay in Poland. Ukrainian citizens may apply for work and residence permit that would be issued for the further period of up to 3 years.

Relocation and work in Poland

As mentioned above Ukrainian citizens who crossed the border after 24.02.2022 will be allowed to reside in Poland for the period of 18 months (just based on the stamp in the passport). Within that period all Ukrainian citizens will be entitled to:

  • work in Poland based on employment contract; or
  • open individual business (self-employed).

In practice Ukrainian citizens, will be treated almost like Polish citizens.

Healthcare after relocation to Poland

Ukrainian citizens will have unrestricted access to the Polish healthcare system, on similar terms as Polish citizens, without any fees.

Education of children after relocation to Poland

Children aged 7-18 will have the right to free education in a Polish school.

Employees relocation from Ukraine to Poland

Number of companies from Ukraine, in particular from IT industry, are recently relocating their businesses to Poland. Transfer of employees is based on the rules described above. This means that every Ukrainian citizen that crosses Polish-Ukrainian border may immediately start working for any company in Poland. No work or residence permits are required, just simple administrative notifications to relevant authorities.

Business relocation from Ukraine to Poland

There are not legal provisions allowing transfer of company from Ukriane to Poland, however recreation of company in Poland may be carried out quickly. Currently company registration in Poland can be completed in couple of days. Polish law provides ability to incorporate the company online. Ukrainian citizens who are not in possession of Polish electronic signatures may use the services of Polish Law Firms that are experienced in fast incorporations.

Polish corporate law is very much foreign investor friendly as:

  • minimum share capital of LLC: 5000 PLN,
  • no restrictions as to nationality of shareholders,
  • no restrictions as to nationality of Directors,
  • no need of special qualifications of the Directors,
  • companies may be established remotely.

Registrations required to run business in Poland

Most of the companies in Poland in order to run the business need to obtain the following numbers: tax number (NIP), statistical number (REGON), VAT number, ZUS registration for social security. First two numbers will be issued automatically during company incorporation process. Second two numbers may be obtained shortly after filling in short forms.

Relocation of IT companies to Poland

Ukraine was always strong in software development and IT business, for this reasons number of Ukrainian IT companies are not relocating to Poland. Firstly, it shall be emphasized that IT services in Poland are not licensed in any way, therefore IT companies may be established freely and quickly. Hardware and software required to run the business in Poland may be brought to the new company in Poland as share capital, leased or purchased from Ukrainian company (which is subject to relocation).

Corporate taxation

Companies in Poland after relocation from Ukraine will be subject to taxation in Poland. LLC is the most popular from of running business in Poland also due to beneficial taxation rules. Corporate income tax is paid at rates of:

  • 0 %  in case of profits retention in the company
  • 9 % for the income up to 2.5 mln EUR
  • 19 % for income above 2.5 mln EUR

At recent moment Polish government has not announced any preferential rules from companies relocating from Ukraine.

Personal taxation of employees' relocation to Poland from Ukraine

Ukrainian citizens that will be hired based on employment contact after relocation to Poland will fall under the same tax scheme as Polish citizens. They will be protected by minimum salary rules. Social security and national security contributions will be levied from remuneration of employees as per Polish legal legislations. Personal income taxes will be also levied at following rates:

  • 0 %  for employees under 26 years old
  • 17 % for incomes below 120.000 PLN
  • 32 % for income above 120.000 PLN

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.