Poland’s global mobility revolution

This shift is driven by reforms to employment rules and competitive tax incentives. Once a country defined by emigration, Poland now records strong inflows of skilled workers. By March 2025, more than 1.21 million foreign nationals were registered with Poland’s Social Insurance Institution (ZUS), reshaping the labour market and the wider economy.

Streamlined employment

March 2025 marked a turning point in the employment of non-EU nationals in Poland. Most labour market tests have been abolished, reducing administrative barriers in sectors such as IT, healthcare, and logistics. The process of issuing labour permits is now fully digital, which has reduced delays and unnecessary paper work. 

Applications for labour permits in 37 sectors where skilled workers are in short supply (including healthcare, construction, IT and software development) are eligible for fast-track processing. 

The impact is measurable. Poland now records an immigrant employment rate of 78.4%, the highest in the OECD, compared with the EU average of 67.9%. Around 78% of Ukrainian refugees in Poland are employed, far exceeding, for example, Germany’s rate of 31%.

These reforms have translated into steady growth in the registered workforce. Foreign registrations with ZUS increased from 1.13 million in 2023 to 1.21 million in early 2025 (a 7% rise). As of February 2025, 1.06 million foreign workers were actively insured, representing a 5.3% year-on-year increase and approximately 7% of the total workforce.

Tax incentives

For Polish nationals living abroad, particularly in the EU and UK, “Return Tax Relief” has proved transformative. It allows a full exemption from personal income tax on annual income up to PLN 85,528 (approximately EUR 19,500) for four consecutive years. Eligibility requires a minimum three-year period abroad and the establishment of Polish tax residence, evidenced by spending more than 183 days per year in Poland.

Uptake has increased sharply, from 8,300 claimants in 2022 to over 25,000 in 2024. In total, around 50,000 individuals have benefited, at an estimated fiscal cost of EUR 680 million. In return, Poland has attracted large numbers of highly skilled professionals, particularly in technology, engineering, and finance.

Returns from the UK rose by 8.7% year-on-year to June 2025, and form part of an estimated 300,000 cumulative returns since 2017. This trend has been supported by Poland’s approximately 35% lower cost of living compared with the UK, rising domestic wages and strong cultural and family ties.

The relief can be combined with other deductions, requires relatively straightforward documentation (such as UK tax deregistration), and operates in line with Poland’s double taxation treaties.

Schengen gateway

Poland’s position within the Schengen Area (a border-free zone covering 29 European countries) reinforces its role as a gateway to the EU for global professionals. By simplifying access for non-EU workers while actively encouraging the return of Polish expatriates, the country has reversed net migration flows and is working to address critical skills shortages.

With high levels of labour market integration and one of the most attractive incentive frameworks in the region, Poland is no longer merely converging with Western Europe. It is actively redefining labour mobility on its own terms, drawing the attention of investors and internationally mobile professionals alike.

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Andrzej Tokaj has built a leading cross-border legal practice and advises investors navigating Central European markets. Active, interactive, and pro-active, Andrzej’s eye for detail is valuable in finding, creating, and seizing opportunities.