Retiring abroad is an exciting prospect, and for many UK citizens, Poland offers a wonderful blend of culture, affordable living, and proximity to the UK.
As a result, it is increasingly becoming a popular destination for British expats, especially those who already have ties to the country, such as a Polish spouse.
This guide will help you navigate the key considerations when planning your retirement to Poland, from residency requirements to healthcare, finances, and integrating into the local community.
Why Retire to Poland?
Poland offers a host of advantages to retirees:
- Cost of living: While Poland can no longer be considered a cheap country to live in, compared to the UK, the cost of living is still generally lower. Housing, food, and public transportation are affordable, especially outside of the major cities. This can mean stretching your retirement savings further.
- Quality healthcare: Poland has a well-developed healthcare system, and British retirees can access it, particularly through private healthcare plans.
- Proximity to the UK: Poland is just a short flight away from the UK, which makes it easy to visit family and friends.
- Rich cultural life: Whether you’re interested in art, history, or simply enjoying the great outdoors, Poland has something for everyone.
Cities like Warsaw, Kraków, and Wrocław are cultural hubs, and there’s also a growing number of expat communities.
Legal Requirements for UK Retirees in Poland
Residency Requirements Post-Brexit
Since the UK left the EU, the rules have changed for British citizens who want to live in Poland.
Here’s what you need to know now:
- Temporary residence: To stay longer than 90 days, you’ll need a temporary residence permit. This is typically granted for up to 3 years at a time. You can apply for this permit based on your retirement and income status.
- Permanent residence: After living in Poland for five years, you can apply for permanent residency. If you’re married to a Polish citizen, this time can be shortened to three years (see below).
Moving with a Polish Spouse
If you are married to a Polish national, the process is much simpler.
You can apply for a family reunification visa, and after three years of legal residence in Poland, you can apply for permanent residency.
Having a Polish spouse also helps immensely with integration into the local community, language barriers, and navigating the bureaucratic processes, which can sometimes be challenging.
Financial Considerations
Pensions
One of the biggest concerns for UK citizens retiring abroad is what happens to their UK pensions.
State Pension: You’ll still receive your State Pension as if you were living in the UK.
This includes any annual increases, known as the “triple lock,” which ensure your pension keeps up with inflation.
Your UK State Pension payments will be taxable in Poland.
Private pensions: If you have a personal or occupational pension, it can also be paid to you in Poland.
You will need to make sure to check with your pension provider about the logistics of receiving your pension abroad.
These payments, unless they are from a UK government scheme such as the NHS or fire service, will be taxable in Poland.
However, they will usually have UK tax deducted at source.
To avoid the hassle of reclaiming tax from HMRC (funny how they are far less enthusiastic about returning overpaid tax as they are about collecting tax that is due), you should obtain a No Tax (NT) Code.
QROPS: For tax reasons, QROPS arrangements are usually not suitable for Polish residents.
Currency Exchange
Retiring in Poland means managing your finances in Polish złoty (PLN).
To make the most of your pension and any other UK-based income, it’s important to plan for currency exchange.
Some tips include:
- Open a Polish bank account: You’ll need one for daily expenses, and it makes paying for services in Poland much easier. Many UK banks no longer allow expats to maintain accounts, so having a Polish account is crucial.
- Minimise forex costs: When you do transfer funds from one currency to another, use an online service like Wise or Revolut. They will give you a much better rate than your bank.
- Watch for exchange rate fluctuations: Keep an eye on the GBP/PLN exchange rate.
Tax Considerations
Poland and the UK have a double taxation agreement, meaning you won’t pay tax twice on the same income.
However, taxes can be tricky when living in one country and earning income from another.
It is also important to know how inheritance tax works if you have assets in both the UK and Poland.
Both countries have their own rules, and consulting with a financial advisor familiar with both jurisdictions can help ensure your estate planning is solid.
Healthcare in Poland
One of the main concerns for retirees is healthcare, and fortunately, Poland has a robust healthcare system.
There are two primary options:
Public healthcare: If you are a resident in Poland, you may be eligible for Poland’s public healthcare system, known as NFZ (Narodowy Fundusz Zdrowia).
Contributions to the NFZ can be arranged through the ZUS (Social Insurance Institution) or private healthcare plans.
Private healthcare: Many expats opt for private healthcare in Poland.
Private insurance plans are affordable and give you access to faster and more comprehensive care than the public system.
This is particularly attractive for retirees who may have more specific healthcare needs.
Finding a Place to Live
Poland offers a variety of living options depending on your budget and lifestyle preferences:
- Cities: Major cities like Warsaw, Kraków, and Gdańsk offer a vibrant cultural life and international communities, but prices can be higher.
- Countryside: If you’re looking for peace and quiet, Poland’s countryside is affordable and beautiful, with many picturesque villages. It’s a great option if you’re seeking a slower pace of life in retirement.
- Coastal and Mountain regions: The Baltic coast and the Tatra mountains are popular for retirees who want access to nature and outdoor activities. Coastal towns like Sopot or mountain regions like Zakopane offer a relaxed lifestyle with stunning scenery.
Renting vs. Buying
- Renting: Renting is a common option for expats, especially when first arriving. Rental costs are affordable compared to the UK, and it allows flexibility if you want to explore different areas before settling down.
- Buying: If you’re ready to settle in Poland long-term, buying property can be a good investment. Prices are still lower than in Western Europe, although they have been rising in recent years. If you’re married to a Polish citizen, property purchases can be simpler, but it’s still vital to seek legal advice.
Learning the Language and Integrating
While English is widely spoken in major cities, particularly among younger generations, learning Polish will make your life much easier and enrich your retirement experience.
Polish can be challenging, but even a basic understanding can go a long way.
Many expats integrate more smoothly into Polish life through:
- Language classes: There are many courses specifically aimed at expats, both online and in person.
- Joining expat communities: Poland has growing British expat communities, particularly in Warsaw and Kraków, offering social events, support groups, and even business networking opportunities.
The Bottom Line
For Brits, especially those with a Polish spouse, the retirement opportunities that Poland offers are vast.
From affordable living and quality healthcare to the rich cultural life and natural beauty, Poland is an increasingly attractive retirement destination for those looking for a new chapter in their lives.
However, while retiring in Poland can be a rewarding experience, it is essential to start planning as early as possible.
Navigating the legal requirements, competing tax systems and financial logistics can be daunting.
Working with a financial adviser who understands the financial landscape in both the UK and Poland will help ensure your retirement in Poland is as smooth and stress-free as possible.
Get In Touch
I am a UK-qualified financial adviser and have been living in Poland for the past 24 years.
I specialise in helping Brits, and those with a connection to the UK, to get their financial ducks in a row.
Use this link to schedule a no-strings call to see how I can help.
