Banking, Money and Taxes in Poland

Money in Poland is called the Zloty (PLN); Euros are not accepted even though the nation joined the European Union (EU) in 2004.

The currency comes in denominations of 10, 20, 100, or 200 Zloty bills, and a single Zloty is made up of 100 Groszy. Plans for Poland to change to the Euro are set for 2012.

Expats can change money in banks or kantors (exchange offices). Banks will likely charge a commission, whereas the kantors usually provide better exchange rates, and don't charge a commission.

Banking in Poland

For many years, banking in Poland was at the mercy of a state monopoly typical of an East European communist economy. The system was inefficient up until the early 1990s due to outdated banking technology and shortages of trained personnel.

However, considerable financial and technical aid from the IMF, the World Bank, and the central banks of other Western countries has inspired large-scale improvements.

Expats moving to Poland these days will find a good number of both local and international banking options; each have different fee policies and different account options. Its highly recommended expats do some preliminary research to find which will work best for them.

Cash and ATM machines are plentiful, and conveniently located around the major cities. Credit cards are widely accepted.

Citibank, HSBC and mBank are most commonly used by expats; staff in these companies can generally speak English, and online banking can also be done in English.

Smaller, more traditional Polish banks and branches may not have English-speaking staff readily available.

Opening a bank account in Poland

A local bank account is necessary for day-to-day activities, not to mention, a must-have for expats to receive payment from employers.

Expats can use their passport and residency card (Karta Pobytu) to open a bank account. In cases where an expat doesn't have a residency card, its often adequate to sign a declaration of residency.

A small monthly fee is required to maintain the account, and additional charges for transactions and direct debit orders also apply.

Taxes in Poland

Expats living and working in Poland qualify for tax status based on the amount of time they spend in the country, or the nature of their employment contract.

Those who are residents, or who spend more than 183 days of the tax year in the nation, will be taxed on their worldwide income.

Poland has a progressive tax system, meaning that according to the annual income earned, expats will be taxed between 19% to 40%.

It is necessary for expats to register for a tax identification number upon arrival (NIP). This is a ten-digit coded number that is also required for social security payments. It can be requested and applied for at your local public tax office.