UK LTD vs Polish Sole Proprietorship: Tax Calculator and Real Savings 2026
The Numbers Don’t Lie: LTD vs Polish JDG
Polish entrepreneurs running sole proprietorships (JDG) face one of the highest tax burdens in the EU. A UK Limited Company offers a dramatically different picture. Let’s compare real numbers.
Scenario: IT Contractor, 25,000 PLN/month revenue
| Polish JDG | UK LTD | |
|---|---|---|
| CIT / Income Tax | 12% flat (~3,000 PLN) | 19% (~4,750 PLN equivalent) |
| ZUS / National Insurance | ~1,600 PLN | £0 on dividends |
| Health Insurance Levy | 9% (~540 PLN from dividends) | N/A |
| Dividend Tax (PIT) | 19% on remainder | 19% PIT in Poland |
| Monthly effective burden | ~8,500+ PLN | ~5,000 PLN |
Annual savings: ~42,000 PLN
What makes the difference?
- No National Insurance on dividends — UK does not charge NICs on dividend income. Poland charges 9% health insurance levy on all dividend income.
- Single CIT rate — 19% regardless of profit level. Poland jumps from 12% to 32% above €2M.
- Lower accounting costs — UK LTD accounting from 400 PLN/month vs Polish full accounting often 500-800+ PLN.
But wait — is this really legal?
Yes. The UK-Poland Double Taxation Convention ensures you’re not taxed twice. Your LTD pays 19% CIT in the UK. You then declare dividends in Poland and pay 19% PIT. The key is proper structure: real UK presence, genuine business activity, substance over form.
The Bottom Line
For Polish entrepreneurs earning above 15,000 PLN/month, the UK LTD structure can save 30,000-80,000+ PLN annually — entirely legally.
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This article is for informational purposes. Individual circumstances vary — consult a qualified advisor.
