Sole Proprietorship in Poland for US Citizens (2026 Guide)

Short answer

Yes — as a US citizen you can register a sole proprietorship in Poland (jednoosobowa działalność gospodarcza, or JDG) on the same terms as a Polish national. The legal basis is the 1990 business treaty between Poland and the United States, and the Polish government's business portal says so expressly. Filing the registration takes about a day. The hard part is what comes after: Polish taxes and social security (ZUS) on one side, and the IRS on the other, because the United States taxes its citizens wherever they live.

Two things to know before you start. The treaty gives you the right to do business, not the right to live here — that needs a separate residence permit. And from 1 November 2026 a new business can be registered only online, which for an American means getting a PESEL number first.

This guide is for Americans — freelance developers, consultants, coaches, English teachers — who have moved to Poland, or plan to, and want to invoice clients legally. It walks through the whole path: legal basis, registration, Polish taxes, ZUS contributions and the US filing obligations that most Polish guides ignore.

Can a US citizen open a JDG in Poland?

Yes. Americans are one of very few non-EU nationalities who may do business in Poland on the same terms as Poles. The basis is the Treaty concerning Business and Economic Relations between Poland and the United States, signed in Washington on 21 March 1990. It promises American nationals treatment at least as favourable as Poles get when they set up and run a business here (Articles I and II). Poland's 2018 Act on foreign entrepreneurs limits most non-EU citizens to certain company forms "unless international agreements provide otherwise" (Article 4(3)) — and this treaty does. The government's business portal, biznes.gov.pl, confirms that US citizens may set up their own business on the same terms as Polish citizens.

In practice this means a US citizen can open a JDG, any commercial company (for example a sp. z o.o.), or a branch of a US company — without the residence-permit condition that applies to most non-EU citizens. The treaty's annex reserves some sectors, such as air transport, banking, insurance and agency services for third parties, and regulated professions still need Polish qualifications. Software, consulting, design and teaching are not on that list.

Does a JDG give you the right to live in Poland?

No. The right to do business is not the right to live in Poland. The treaty itself makes entry and stay subject to the laws on the entry and residence of foreigners (Article II(2)). As a US citizen you can stay in the Schengen Area visa-free for up to 90 days in any 180-day period (Article 4(1) of Regulation (EU) 2018/1806). If you plan to live in Poland and run your JDG from here, you need a separate legal basis for your stay — typically a temporary residence permit (zezwolenie na pobyt czasowy, issued as a residence card, karta pobytu), which can be granted for running a business, for work, to the spouse of a Polish citizen, or on other grounds. The non-EU spouse of another EU citizen living in Poland gets a different document instead: a residence card for an EU citizen's family member (karta pobytowa).

Registering a JDG does not by itself extend your 90-day visa-free stay. Plan the immigration side first, ideally with an immigration lawyer, and the business side second.

What do you need before you register?

Get these in place first — each one blocks a later step.

A legal basis for your stay. Visa-free stay, a visa, a residence card, or a stamp confirming a pending residence application. The business register does not ask for it — your right to do business comes from your citizenship — but your stay must still be legal, and you need an address in Poland for the next point.
A PESEL number. Poland's personal ID number. From 1 November 2026 a foreign applicant must have a PESEL to register a business (or an EU member state's cross-border eID identifier, which Americans normally don't have). You get a PESEL automatically when you register your address for a stay of more than 30 days (meldunek); otherwise you apply for one at any municipal office, and as a US citizen you must file that application in person.
A way to sign online. A trusted profile (Profil Zaufany, which also requires a PESEL) or a qualified electronic signature.
A business address. Your home address, a rented office or a virtual office. Tax and ZUS letters go there, and many now arrive through the official e-Delivery system (e-Doręczenia) instead of on paper. A new JDG sets up its e-Delivery address through the registration application — what that means in practice.
Your activity codes (PKD). Every business activity must be classified. New registrations use the PKD 2025 classification; software development, consulting, translation and teaching each have their own codes.
A Polish bank account. Not strictly required on day one, but you will need one to pay taxes and contributions and, if you register for VAT, to appear on the VAT "white list".
Your tax decision. You choose your form of income taxation in the registration form or shortly after it (more below). It is the most expensive decision in this guide to get wrong, so make it before you fill in the form, not while you do.

How do you register a JDG as a US citizen?

One application to the Central Register and Information on Business Activity (CEIDG) does almost everything, and registration is free of charge.

File the CEIDG-1 application online at biznes.gov.pl, signed with your trusted profile or a qualified electronic signature. You can pick a start date in the future. Paper applications for a new business filed after 31 October 2026 are left unprocessed.
Choose your tax form in the same application — or file the statement with the tax office later, by the 20th day of the month after the month of your first revenue. If you do neither, you are taxed on the progressive tax scale.
Register with ZUS (social security) in the same application. The ZUS registration is attached to CEIDG-1, and that is where you declare whether you start with the start-up relief (see the ZUS section). ZUS registration is due within 7 days of your start date.
Receive your NIP and REGON. As a sole proprietor your tax ID is your NIP. If you already have a Polish NIP, you enter it in the application and keep it; if not, the application doubles as the NIP application, and the number is usually assigned by the next working day. The statistical number, REGON, is assigned the same way.
Decide on VAT. If you register as an active VAT payer, or need an EU VAT number for cross-border services, the VAT-R registration can be attached to the same application or filed separately — see the VAT section.
Open a business bank account and set up invoicing. Poland's national e-invoicing system (KSeF) has been mandatory since 2026, so pick invoicing software that connects to it.

Realistic timeline: one day to file, a day or two for all numbers to appear, and you can usually invoice within the first week. The immigration side takes far longer — residence permit cases in Kraków and other big cities often run for many months. The same steps in more detail, written for EU citizens on B2B contracts, are in our JDG setup guide.

How is a JDG taxed in Poland?

If you live in Poland, you are very likely a Polish tax resident: Polish law treats you as one if your centre of personal or economic interests is here, or if you stay here for more than 183 days in a tax year (Article 3(1a) of the PIT Act). A Polish tax resident pays Polish income tax on worldwide income — how residence is decided.

A JDG owner picks one of three regimes:

	Tax scale (skala podatkowa)	Flat tax (podatek liniowy)	Lump-sum tax (ryczałt)
Tax rate	12% up to PLN 120,000 of income, 32% above	19% of income	Fixed % of revenue — e.g. 12% for software and IT consulting services listed in the Act, 8.5% for many other services
Business costs	Deductible	Deductible	Not deductible
Tax-free amount	PLN 30,000 per year	None	None
Health contribution (2026)	9% of income, min. PLN 432.54/month	4.9% of income, min. PLN 432.54/month	Fixed: PLN 498.35 / 830.58 / 1,495.04 per month, by annual revenue band (up to PLN 60,000 / up to 300,000 / above 300,000)
Joint filing with a spouse	Possible if both spouses are Polish tax residents with joint marital property for the whole year	Not possible	Not possible

The minimum health contribution on the tax scale and flat tax applies from February 2026 to January 2027; the ryczałt amounts apply to calendar 2026.

The choice applies to the whole tax year. You make it in CEIDG-1 or by the 20th day of the month after your first revenue; if you do nothing, the tax scale applies. The form then carries over to the following years, and you can change it for a new year by the same kind of deadline — the 20th day of the month after your first revenue in that year (Article 9a of the PIT Act; Article 9 of the Lump-Sum Tax Act).

The ryczałt rate depends on the exact classification of your service, not on what you call it. Software development and the IT consulting services the Act lists (PKWiU ex 62.01.1, 62.01.2, 62.02.10.0, ex 62.02, ex 62.09.20.0 and 62.03.1, where "ex" means only part of a class) are taxed at 12%, data processing (ex 63.11.1) and management consulting at 15%, translation at 15% — or 17% when you translate personally as a free profession — and teaching at 8.5% (Article 12(1) of the Lump-Sum Tax Act). Get your classification confirmed before you register. The three regimes with worked examples are in ryczałt, flat tax or the tax scale for IT contractors.

VAT

In 2026 you can stay VAT-exempt as long as the value of your sales in Poland does not exceed PLN 240,000 a year (Article 113(1) of the VAT Act; the limit was PLN 200,000 in 2025). In your first year the limit is prorated to the part of the year you are in business (Article 113(9)) — our calculator does the arithmetic.

Three points matter specifically for Americans working with foreign clients:

B2B services to a US company are, as a rule, taxed where the client is established (Article 28b), so no Polish VAT is charged. Such sales generally do not count toward the PLN 240,000 limit either, because the limit covers sales in Poland.
Services to EU businesses require registration as a VAT-EU taxpayer before the first one, even if you are otherwise VAT-exempt (Article 97(3)).
Services you buy from foreign suppliers — advertising, software subscriptions, online platforms — are usually an import of services. A VAT-exempt JDG then has to register as VAT-EU, self-assess Polish VAT (usually 23%) and file a VAT-9M return by the 25th of the following month. This applies to US suppliers as well as EU ones, and it is a frequent surprise.

Some activities can never use the exemption, whatever the turnover — among them legal services and advisory (consulting) services, with the sole exception of farm advisory (Article 113(13)). Check this before relying on the exemption. More in VAT for freelancers with clients abroad.

KSeF — Poland's mandatory e-invoicing

Since 1 April 2026 every business in Poland — VAT-exempt sole proprietors included — must issue invoices to business clients through the National e-Invoice System (KSeF). Until 31 December 2026 you may still invoice outside KSeF in any month in which those invoices total no more than PLN 10,000 gross, but you lose that option from the invoice that crosses the threshold. Invoices to foreign clients are issued in KSeF too, and then delivered to the client in the agreed way, for example as a PDF.

Under current law, fines for not using KSeF start on 1 January 2027. The Ministry of Finance has announced it wants to push them back to the end of 2027, but that needs a change in the law that has not yet been passed. In practice: use invoicing software connected to KSeF from day one. What changes on 1 January 2027.

How much is ZUS for a sole proprietor in 2026?

Every JDG owner pays two kinds of contributions to ZUS: social insurance (pension, disability, accident and optional sickness insurance) and the health contribution shown in the tax table above. New businesses get a ramp-up period for the social part only — the health contribution is due from day one.

Stage	How long	Social contributions per month (2026)	Main condition
Start-up relief (ulga na start)	First 6 full months	PLN 0	No business activity in the previous 60 months; not working for an employer for whom you did the same tasks as an employee in the current or previous calendar year
Preferential ZUS (mały ZUS)	Next 24 months	PLN 456.18 with sickness insurance (PLN 420.86 without)	Same as above
Small ZUS Plus (mały ZUS plus)	Up to 36 months in each 60-month period	Based on income, between preferential and full	Previous year's revenue up to PLN 120,000 and at least 60 days of business in that year
Full ZUS (duży ZUS)	After that	PLN 1,926.76 with sickness insurance (PLN 1,788.29 without), Labour Fund included	—

Figures are based on the 2026 minimum wage of PLN 4,806 and the full-ZUS base of PLN 5,652. Social contributions change every January, and the 2027 minimum wage is already set at PLN 4,950 (what it changes). If you ran a business in the US in the last five years, confirm with ZUS whether it affects the reliefs. The month-by-month timeline is in ZUS for self-employed foreigners.

Do you pay ZUS and US self-employment tax? The US–Poland Totalization Agreement

Without a treaty, a self-employed American in Poland would owe ZUS and US self-employment tax (15.3%). The US–Poland social security agreement, in force since 1 March 2009, fixes that: a self-employed person who resides in Poland is covered only by the Polish system (Article 6(4)).

To use it, apply to ZUS for a certificate of coverage, form PL/USA 1 — on paper with the UM-USA 1 application at a ZUS branch, or with the PL/USA 1 form on the eZUS platform — and attach a copy to your US tax return every year. Keep it on file: it is your proof that you owe no US self-employment tax on JDG income. This matters because the Foreign Earned Income Exclusion (below) does not reduce self-employment tax; only the totalization agreement does.

A side benefit for later: if your coverage in one country is too short to qualify for a pension there, the agreement lets that country count your coverage in the other (minimums apply), and pay you a partial benefit.

What does the IRS still expect from a US citizen with a JDG?

The United States taxes its citizens on worldwide income, wherever they live. Moving to Poland and opening a JDG does not end your US filing obligations — it adds a few.

You keep filing Form 1040. Net self-employment earnings of USD 400 or more trigger a filing requirement on their own. If you live and have your main place of business abroad, you get an automatic extension to 15 June (attach a statement to the return), but interest on any tax due runs from 15 April. The Polish annual return is due by 30 April.
Your JDG goes on Schedule C. A JDG is not a separate legal entity — it is you. You report its income and expenses on Schedule C, in US dollars.
Foreign Earned Income Exclusion (FEIE, Form 2555). If your tax home is in Poland and you pass the bona fide residence test or the physical presence test (at least 330 full days in a foreign country during any 12 consecutive months), you can exclude up to USD 132,900 of foreign earned income for 2026.
Foreign Tax Credit (FTC, Form 1116). The alternative, or complement, to the FEIE: a credit for foreign income tax paid. Which of the two fits depends on your income, your Polish tax regime and your plans, and is a question for your US tax preparer. Whether Polish ryczałt, a tax on revenue, and the health contribution qualify as creditable foreign taxes is a technical question for a US expat tax specialist.
Self-employment tax. Covered by the totalization agreement described above — with a PL/USA 1 certificate, you pay ZUS instead.
FBAR and FATCA. If your non-US accounts — your Polish business account included — exceed USD 10,000 combined at any point in the year, you must file an FBAR (FinCEN Form 114). Larger balances may also require Form 8938. Expect your Polish bank to ask for your US tax ID: under the Poland–US FATCA agreement, Polish banks report American account holders.
The tax treaty helps less than you think. The US–Poland income tax treaty in force is the one from 1974; a replacement signed in 2013 has not entered into force. Like all US treaties, it lets the US keep taxing its own citizens (the "saving clause", Article 5(3)), so in practice relief comes from the FEIE and the FTC.
Watch your state. Some US states keep taxing former residents who have not clearly given up their domicile — Virginia and California say so in their own guidance. Check yours before you leave.

We keep your Polish books in PLN and prepare year-end figures your US preparer can work from for Schedule C. But the US return itself belongs with a US-qualified expat tax professional.

Common mistakes — and a checklist to avoid them

The costliest mistakes are not about the registration form. They come from treating Poland and the US as two separate problems.

Assuming a JDG gives you the right to stay. It does not. Without a residence basis you are limited to 90 days in any 180.
Leaving the PESEL for later. From 1 November 2026 there is no paper registration, and without a PESEL you cannot file online.
Letting the tax form happen by default. Skip the choice and the tax scale applies for the whole year, whatever your costs and income; the next chance to change is the following year.
Guessing the ryczałt rate. The rate follows the exact classification of your service. Software consulting taxed at 12% and management consulting taxed at 15% can look alike on an invoice.
Forgetting the VAT-EU number. Selling to EU businesses, or buying ads, software or services from foreign suppliers, usually requires VAT-EU registration even when you are VAT-exempt.
Paying US self-employment tax for nothing. Without the PL/USA 1 certificate from ZUS, you may end up paying social security twice.
Skipping the FBAR. Your Polish business account counts toward the USD 10,000 threshold.
Invoicing outside KSeF once you are obligated. Fines are due to start in 2027.

Your checklist

Legal basis and official sources

Treaty concerning Business and Economic Relations between the Republic of Poland and the United States of America, Washington, 21 March 1990 (Journal of Laws 1994 No. 97, item 467), Articles I(1), II(1)–(2), XII(5) and the Annex, as amended by the Additional Protocol of 12 January 2004 (Journal of Laws 2005 No. 3, item 14)
Act of 6 March 2018 on foreign entrepreneurs, Article 4(3) and, from 1 November 2026, Article 4(9); Act of 13 March 2026 amending the CEIDG Act (Journal of Laws 2026, item 507), Articles 15 and 16
CEIDG Act of 6 March 2018, Articles 6(3)–(4) and 13; Act on population records, Articles 7(2), 16, 17(1)(2), 18(1)–(1a) and 42(2); Act on taxpayer records and identification, Articles 3(1) and 5a
PIT Act, Articles 3(1)–(1a), 6(2) and (8), 9a, 11a, 27(1), 30c(1) and 45(1); Lump-Sum Income Tax Act, Articles 4(1)(11), 9(1)–(1b), 12(1) and 21(2)
Act on publicly funded healthcare services, Articles 66, 79, 79a and 81; Entrepreneurs' Law, Articles 18, 22(1) and 23; Social Insurance System Act, Articles 13 point 4, 18a, 18aa, 18c and 36(4)
VAT Act, Articles 2 points 9 and 22, 17(1)(4), 28b, 96b, 97(3), 99(9), 106e(11), 106ga, 106gb(4), 106ni(1), 113(1), (9) and (13), and 145m
Regulation (EU) 2018/1806, Article 4(1) and Annex II; Act on foreigners, Articles 142(1) and 158(1); Act of 14 July 2006 on the entry and residence of EU citizens and their family members, Article 20(1)
Agreement on Social Security between Poland and the United States of 2 April 2008 (Journal of Laws 2009 No. 46, item 374), Articles 6(4) and 7
Convention between Poland and the United States on taxes on income of 8 October 1974, Article 5(3)
Official pages: biznes.gov.pl — what business a foreigner may run in Poland (in Polish), ZUS — the PL/USA 1 certificate (in Polish), KSeF — questions from sole traders (in Polish), SSA — the US–Poland agreement, IRS — Publication 54, IRS — Rev. Proc. 2025-32, FinCEN — the FBAR

How we can help

We are a bookkeeping office in Kraków serving sole proprietors, with correspondence in English. For American clients we can register your JDG in CEIDG, set up ZUS and VAT, keep your books, file your Polish returns and contributions, help you start issuing invoices in KSeF and prepare your PL/USA 1 application. We prepare year-end figures that your US tax preparer can use directly. We do not handle immigration matters or US tax returns.

The day-to-day side of a JDG is in our English guide to the sole proprietorship. If you want to talk it through, book a 30-minute call or check the price.

Frequently asked questions

Do I need to speak Polish to run a JDG? No, but official forms and letters from the tax office and ZUS are in Polish. Most foreigners rely on an accounting office to handle that correspondence.

How long can a US citizen stay in Poland without a residence permit? Up to 90 days in any 180-day period, counted across the whole Schengen Area. Registering a JDG does not extend that; a longer stay needs a residence permit or a national visa.

Can I register a JDG while still living in the US? Not in practice. From 1 November 2026 registration is online only and requires a PESEL, which you get by registering an address in Poland or by applying in person at a Polish municipal office. A JDG is also built for people who work from Poland: a self-employed person living in the US stays in the US social security system under the totalization agreement.

Do I pay social security in both Poland and the US? No, if you live in Poland and hold a PL/USA 1 certificate from ZUS. Under the US–Poland agreement you then pay ZUS only and attach the certificate to your US return as proof that you owe no US self-employment tax.

Can I invoice my American clients in USD? Yes. For Polish income tax the revenue is converted to PLN at the National Bank of Poland average rate from the last business day before the revenue date, and any Polish VAT shown on an invoice must be stated in PLN.

How does a JDG differ from a Polish limited company (sp. z o.o.)? A JDG is you: you are personally liable for its debts, and its income goes on your own tax return. A sp. z o.o. is a separate company with its own corporate income tax, full accounting and more formalities, and for a US citizen it brings extra US reporting, such as Form 5471 for an owner of 10% or more. We keep books for sole proprietorships only when the client does not speak Polish.

Can I suspend my JDG if I go back to the US for a while? Yes — for an indefinite period or for at least 30 days, as long as you have no employees. While the business is suspended you pay neither social security nor the health contribution, so you also lose NFZ health cover through the business. More in leaving Poland: suspend or close your JDG.

This article is general information, not legal or tax advice. Figures change every year. NASZKIEWICZ Biuro Rachunkowe provides bookkeeping services; for tax advice, immigration matters and US tax returns, please consult a licensed tax adviser, an immigration lawyer and a US-qualified expat tax professional. Legal status as of 10 October 2026.