Retire to Poland with Confidence: Essential Tips for Brits Looking to Move
Thinking about retiring to Poland? You’re not alone. Whether you’re a Brit with Polish roots, married to a Polish spouse, or simply drawn to the lower cost of living and rich cultural heritage, more and more UK citizens are choosing to retire in Poland. For many Brits in Poland, especially those who are returning to Poland after years abroad, the country offers a peaceful, affordable lifestyle, along with easy access to healthcare, excellent public transport, and the chance to be closer to family. But to make the most of your move, it’s crucial to get your pension, tax, and financial planning in order before you go.
In this post, we’ll look at:
✔ How your UK pensions and investments will be taxed in Poland.
✔ The impact of Polish inheritance tax vs. UK inheritance tax.
✔ How to avoid double taxation and structure your wealth efficiently.
✔ How to secure your residency and access healthcare.
No to jedziemy! 🙂
Why UK Expats Are Retiring to Poland
While Poland might not have the Mediterranean climate of southern Europe, it offers distinct advantages for UK retirees, especially for those married to Polish nationals.
As a result, it is one of the fastest-growing destinations for UK retirees.
Here’s why Poland is becoming increasingly popular:
🔹 Lower Cost of Living – From groceries to healthcare, most expats find their pension stretches further than in the UK.
🔹 Cultural & Family Ties – Many British retirees have Polish partners with deep family roots here.
🔹 Safety – Despite its geographical position, Poland is a very safe and secure place to live.
🔹 Residency Options – Especially easy for those married to Polish nationals.
But don’t move without doing your financial homework; the UK-Poland tax and pension rules can be complex 😢
>>> Did you know? Over 8,000 Brits already call Poland their home.
Residency & Tax Status: What You Need to Know About Moving to Poland
Residency Rules After Brexit
Since the UK left the EU, Brits no longer have automatic residency rights in Poland.
You’ll need to apply for residency under one of the following routes:
1️⃣ Residence Through a Polish Spouse
This is the most straightforward option.
If you’re married to a Polish citizen, you can apply for a temporary residence card, which can lead to permanent residency after a few years.
2️⃣ Independent Residency
Even without a Polish spouse, you can retire to Poland by showing:
✔ Proof of regular passive income (e.g. pensions).
✔ Valid health insurance.
✔ A registered address in Poland.
✔ Clean criminal record.
Polish Tax Residency: What It Means
If you make Poland your “centre of vital interests,” you’ll be considered a Polish tax resident.
This means that:
✔ Your worldwide income becomes taxable in Poland.
✔ You must declare foreign assets to the Polish tax authorities.
Careful planning is essential to avoid double taxation and optimise your income.
How to Draw Your UK Pension in Poland (and Minimise Tax)
Accessing Your UK Pension in Poland
If you live in the UK, you can usually access your pension using flexi-access drawdown (FAD).
FAD allows you to take control of how and when you withdraw your pension funds.
However, once move overseas, many pension providers will deny access to flexible drawdown options.
Instead, your options may be limited to:
🔻 Buy an annuity; or
🔻 Take 100% of your pension as a lump sum, triggering:
- Likely UK withholding tax, and
- Tax on most or all of the lump sum in Poland.
UK Pension Taxation in Poland
There’s no special flat tax regime for foreign pensions in Poland (unlike Greece or Portugal).
Pension income is taxed progressively, in the same way as regular earned income.
Under the UK-Poland Double Tax Treaty:
✔ Your UK State Pension is only taxable in Poland.
✔ Income from your private pensions are also only taxable in Poland.
❗ Key Tips:
💡 Inform HMRC that you have left the UK using form P85.
💡 Apply for a ‘No Tax’ tax code so that your pension providers don’t deduct UK tax at source.
💡 Work with a specialist cross-border financial adviser to structure your pension income tax-efficiently.
UK State Pension & Poland
The UK State Pension continues to rise annually for those living in Poland, thanks to a reciprocal agreement.
Financial Advice in Poland
Most UK IFAs are unfamiliar with the pitfalls associated with living overseas.
In addition, post-Brexit, the majority of UK financial advisers refuse to work with EU resident clients.
How Brexit Changed Financial Advice for UK Expats in the EU
However, the concept of an Independent Financial Adviser (IFA) does not really exist in Poland.
Most financial products are still distributed via banks and insurance companies.
That is why it pays to find an IFA who is familiar with both the UK and Polish financial systems.
Inheritance Tax (IHT): UK vs. Poland
Do Brits Still Pay IHT After Moving to Poland?
✔ UK IHT still applies on your worldwide assets if you have spent more than 10 years out of the last 20 in the UK.
✔ Even if you have spent less than 10 years out of the last 20 in the UK, UK IHT will still apply on UK-situated assets, e.g. property and pensions (from 6th April 2027).
✔ In the UK, IHT is based on the estate of the deceased. However, in Poland (as in many other countries), it is the recipient of the inheritance that is liable for Inheritance Tax.
✔ This gives rise to the possibility of double taxation (IHT is not covered by the UK-Poland double tax treaty).
How to Reduce Your IHT Exposure:
💡 Review your UK will and create a Polish will for local assets.
💡 Use gift allowances – start transferring wealth early to reduce your estate.
💡 Consider life insurance in trust – to cover any future IHT bills.
💡 Work with advisers familiar with UK-Poland cross-border estates.
Case Study: Retiring to Poland – How Steve & Kasia Structured Their Finances
Background
Steve (60), from Manchester, and Kasia (52), originally from Kraków, are planning to retire to Poland after Steve’s retirement.
They want to live near family, enjoy the slower pace of life, and help their 2 children back in the UK onto the property ladder.
Financial Overview
💰 Steve’s 3 defined contribution pensions – total value £550,000.
💰 Cash Savings – £200,000.
💰 Stocks & Shares ISA – £180,000.
💰 Future State Pension – Steve is entitled to full UK State Pension at 67. However, Kasia currently has only 20 years of qualifying contributions.
Their Key Challenges:
1️⃣ How to structure Steve’s pensions for maximum flexibility and tax efficiency.
2️⃣ What to do with their ISA (not tax-free in Poland).
3️⃣ Helping their children in the UK without triggering IHT.
4️⃣ Managing currency risk.
Their Strategy:
▪️ Transfer Steve’s 3 UK pensions into an International SIPP, thus allowing him to retain control over how and when he withdraws his pension funds.
▪️ Apply for a No Tax (NT) tax code so that he can receive payments from his international SIPP without UK tax being deducted at source.
▪️ Sell ISA investments before becoming Polish tax residents
▪️ Move some savings into EUR and PLN-denominated accounts
▪️ Make gifts to their children and put a life insurance policy in trust to cover future IHT exposure
▪️ Make voluntary National Insurance Contributions for Kasia so that she can continue to build her UK State Pension entitlement.
Outcome
By working with a cross-border adviser, Steve and Kasia achieved a tax-efficient income, avoided double taxation, and supported their family without excessive UK inheritance tax.
Applying for an NT tax code can save UK expats thousands in unnecessary tax deductions.
Moving to Poland as a UK Retiree
FAQs
Yes—but they’re no longer tax-free.
Any income or gains are taxable under Polish rules.
In addition, you cannot make any further contributions to an ISA if you are no longer UK resident.
No.
Thanks to the UK-Poland tax treaty, pensions are only taxable in Poland.
Yes.
It depends.
If you rent it out, income is taxable in both countries (but relief is available).
You might face UK capital gains tax if you sell after becoming Polish tax resident.
It runs from the 1st of January to the 31st of December.
It depends on your bank.
Many UK banks have closed the accounts of EU residents.
Consider multi-currency solutions like Wise or Revolut.
Poland offers a lower cost of living compared to the UK, quality healthcare, close proximity to the UK for travel, and a rich cultural life.
Many British expats also have personal ties to Poland, such as a Polish spouse, which makes integration easier.
Retirees should open a Polish bank account for daily expenses.
To minimise forex costs, services like Wise or Revolut offer better exchange rates than traditional banks.
Keeping an eye on GBP/PLN exchange rates can also help optimise transfers.
Major cities like Warsaw, Kraków, and Gdańsk offer vibrant cultural scenes and expat communities.
The countryside provides a quieter, more affordable lifestyle.
The Baltic coast and Tatra Mountains are great for those who enjoy nature and outdoor activities.
Renting is a flexible and affordable option for expats who want to explore different areas before settling.
Buying property can be a good long-term investment, especially as prices are still lower than in Western Europe, but legal advice is recommended before purchasing.
Final Thoughts: Planning a Tax-Efficient Retirement in Poland
Retiring in Poland can offer an affordable, culturally rich, and fulfilling lifestyle – especially for those with family ties. But to make the most of it, you need to: ✔ Optimise your pension withdrawals. ✔ Understand your tax residency and reporting obligations. ✔ Plan for inheritance tax exposure in both countries. ✔ Manage currency risk.Want Expert Guidance on Your Polish Retirement?
I am a UK-qualified financial adviser and have been living in Warsaw for the past 24 years. I specialise in helping Brits in Poland get their financial ducks in a row. Use this link to schedule a call to see how I can help.
Ross is a qualified Chartered Financial Planner and Pension Transfer Specialist.
He has been a cross-border financial adviser for 25 years and specialises in helping British expats manage their finances with clarity and peace of mind.
If you would like to have a no strings chat with him, please get in touch.
