Opening a Polish JDG: key tax and status checks
Foreign residents need to confirm their eligibility and calculate taxes before registering a sole proprietorship in Poland. Moving from employment to B2B work can also affect ZUS relief and tax options.
A foreign national planning to establish a Polish sole proprietorship, known as a JDG, should first verify whether their residence status permits it. Ukrainians with PESEL UKR and holders of certain permanent, family-based or long-term residence rights may qualify, while an ordinary temporary work-and-residence permit without UKR status generally does not. inPoland.net.pl reported this on Thursday, October 15.
Special care is needed when an employee leaves a job and immediately provides the same services to the former employer under a B2B contract. According to the guidance, this arrangement may remove access to preferential ZUS contributions and prevent the entrepreneur from using the revenue-based ryczałt regime for those services.
The registration date can have financial consequences as well. A person earning at least the 2026 minimum monthly salary of PLN 4,806 gross under an employment contract will normally pay only the health contribution through the JDG. However, opening the business too early may use up the six-month Ulga na start period before substantial freelance activity begins.
Entrepreneurs must choose among ryczałt, the progressive 12% and 32% scale, and the 19% flat-rate income tax based on their revenue, deductible costs and type of work. Poland’s VAT exemption threshold is PLN 240,000 in annual sales from 2026, but purchases of software, online advertising or other services from foreign suppliers may still trigger VAT-UE registration and reporting duties. CEIDG registration itself is free.