EU Football Players in Poland – What Are the Rules for Tax Reporting on Business Activities?
EU Football Players in Poland – Tax Settlement for Sole Proprietorships: Key Rules
Tax Settlement for Sole Proprietorships.
Almost all professional football players playing for Polish clubs are employed under contracts they fulfill as sole proprietors. This is a tax-efficient arrangement for both players and clubs, allowing the player to pay lower taxes than if employed without operating as a sole proprietorship. It should be noted that this arrangement applies almost exclusively to EU nationals—foreigners from outside the European Union face greater difficulties in establishing a sole proprietorship in Poland.
Below, we outline the basic rules for tax reporting by a foreign football player operating a business in Poland.
How can an EU football player start a business in Poland?
Citizens of European Union member states and the European Economic Area may conduct business in Poland under rules that are essentially the same as those for Polish citizens. Among other options, they may establish a sole proprietorship or a commercial company. For a football player, the simplest option is a sole proprietorship (JDG).
Registration of a sole proprietorship is carried out through the Central Register and Information on Economic Activity (CEIDG). The application can be submitted electronically. When registering, you must provide, among other things, personal information, an identification document, your residential address, and details regarding the business. A foreign national who does not have a PESEL number may use another identifier specified on the CEIDG form.
Business registration also triggers a number of obligations toward the tax authorities and the Social Insurance Institution (ZUS). In practice, the entrepreneur should, in particular, determine:
- the appropriate PKD codes—for a football player, this will typically be 93.19.Z “Sports activities not classified elsewhere,”
- the PIT tax regime,
- VAT status (the vast majority of national-level players will be VAT taxpayers),
- the rules governing social security and health insurance coverage,
- the method of bookkeeping,
- the appropriate bank account and method of paying taxes.
What taxes does a football player operating as a sole proprietor pay?
In a typical scenario, a foreign football player operating a sole proprietorship in Poland may primarily be required to file the following:
- PIT—personal income tax—the amount of which depends on income and the chosen tax regime,
- VAT – value-added tax, if the player is a registered VAT payer or if his transactions are subject to applicable VAT rules – the tax rate is 23%,
- ZUS contributions—primarily social security and health insurance.
It is important to note that PIT and VAT are taxes, whereas ZUS consists of insurance contributions. These are therefore separate obligations that must be analyzed independently.
Forms of Taxation
Tax Bracket
The tax scale is the basic form of taxation for business activities. Unless a business owner opts for a flat tax or a lump-sum tax, they generally settle their business activities according to the tax scale.
In 2026, the tax scale is as follows:
| Annual Income | Tax |
| up to 120,000 PLN | 12% minus 3,600 PLN |
| over 120,000 PLN | 10,800 PLN + 32% of the amount exceeding 120,000 PLN |
Simply put, the tax base is income, which is:
revenue – deductible business expenses = income.
Deductible expenses are those related to business operations and that meet statutory requirements. For professional athletes, the issue of deductible expenses requires particular caution—not every expense related to an athlete’s life will automatically qualify as a tax-deductible expense.
Examples of deductible expenses for a football player include spending on sports equipment, sports apparel, physical therapy, and legal services. Whether a specific expense qualifies as a deductible cost depends on its connection to the business and whether it meets the conditions set forth in the Personal Income Tax Act.
Flat Tax – 19%
A flat tax may be a favorable form of taxation for football players with high earnings and business expenses.
Its main advantage is a flat rate of 19% of income, regardless of the income amount. The flat tax is also based on the formula described for the progressive tax scale:
revenue – expenses = income → 19% PIT.
The flat tax is particularly often considered for high earners, as it allows them to avoid falling into the 32% tax bracket. However, this does not mean it will always be more advantageous—one must take into account, among other things, business expenses, other income, health insurance premiums, and available tax credits.
It is also important to note that the deduction for health insurance premiums is limited under the flat tax. In 2026, a business owner may either classify health insurance premiums as business expenses or deduct them from income up to the statutory limit of 14,100 PLN.
Lump-Sum Tax on Recorded Revenue
The third basic form of taxation is the lump-sum tax on recorded revenue.
Here, the mechanism is completely different from that of the progressive tax scale and the flat tax. As a general rule, the tax is calculated based on revenue, not income. This means that business expenses are not deducted in the same way as under the progressive tax scale or the flat tax.
For example:
revenue × applicable lump-sum rate = tax
The current flat-rate tax rate for football players is 15%.
A lump-sum tax may be attractive to a player who has high income and relatively low tax expenses. However, if a football player incurs significant expenses related to his activities, the lump-sum tax may prove to be less advantageous.
To qualify for the lump-sum tax, statutory requirements must also be met. One of the basic limits is an annual income cap of 2 million euros, calculated according to the rules set forth in the law.
VAT
Not every football player is required to be a VAT taxpayer, but most of them will be.
As of January 1, 2026, the threshold for VAT exemption is 240,000 PLN in annual sales. If business operations begin during the year, the threshold is adjusted proportionally.
For football players in the top leagues, this limit is usually exceeded very quickly. If a player issues invoices for large amounts to a Polish club, it will most often be necessary to file VAT returns as an active taxpayer, unless there is a specific basis for treating the transaction differently.
For a VAT-taxable service provided to a Polish club, the standard VAT rate is generally 23%, unless the specific transaction qualifies for an exemption or a different rate.
Social Security
Conducting business in Poland entails the obligation to pay social security contributions, unless the entrepreneur qualifies for an applicable exemption or is subject to the legislation of another country.
A new entrepreneur may, in certain cases, take advantage of exemptions.
One such relief is the startup relief, which—provided the statutory conditions are met—allows entrepreneurs to be exempt from paying mandatory social security contributions for the first six months. However, this does not mean that health insurance contributions are waived; these remain mandatory.
After the start-up relief, it is also possible to take advantage of preferential social security contributions, known as “small ZUS.” The contributions will then be lower for 24 months from the start of the relief period.
Health Insurance Premium
The health insurance premium depends on the chosen form of taxation.
Under the progressive tax scale, it is generally 9% of the assessment base, while under the flat tax rate, it is 4.9% of the assessment base. A minimum assessment base also applies for both the progressive scale and the flat tax rate. Starting in February 2026, the minimum monthly contribution is 432.54 PLN.
For the lump-sum tax, the rules are different. The health insurance premium depends on the level of income earned since the beginning of the year. In 2026, the monthly premiums are as follows:
- 498.35 PLN – for income up to 60,000 PLN,
- 830.58 PLN – for income above 60,000 PLN up to 300,000 PLN,
- 1,495.04 PLN – for income above 300,000 PLN.
For a professional football player with high earnings, this means that once the relevant thresholds are exceeded, the health insurance premium under the flat-rate system may be significantly higher than the minimum.
Tax Settlement for Sole Proprietorships – Summary
In principle, it is possible and relatively straightforward from a formal standpoint for a foreign football player from the European Union to establish a sole proprietorship in Poland. However, correctly determining the method of taxation and insurance coverage can be significantly more complicated.
When a player’s income is high, the differences between the various models can be very significant. Therefore, the choice of a tax regime should be preceded by an individual calculation that takes into account the contract amount, business expenses, other sources of income, and any other relevant information. Typically, however, the lump-sum tax regime is the most advantageous option for football players.
It is also worth remembering the social security contribution reliefs available to new entrepreneurs: the startup relief (6 months) and the small business social security relief (24 months).
FAQ
There is no single form of taxation that will be the best option for every player. The choice depends primarily on the level of income, business expenses, and other sources of income. Football players may settle their business income under the progressive tax scale, the 19% flat tax, or lump-sum taxation on recorded revenue. For players earning high revenues and incurring relatively low business expenses, the 15% lump-sum tax may often prove advantageous. However, the actual PIT and health insurance burden should always be compared for each available option.
If a football player runs a business and provides services to a club that are subject to VAT, they may be required to register as an active VAT taxpayer. From 2026, the annual VAT exemption threshold is PLN 240,000, which means that professional players with higher-value contracts may exceed it quickly. In a typical case, services provided to a Polish club are subject to the standard 23% VAT rate, unless a specific exemption or different VAT treatment applies.
As a rule, operating a sole proprietorship in Poland involves the obligation to pay social security and health insurance contributions. However, a new entrepreneur may, subject to statutory conditions, benefit from the “relief for start-ups” and subsequently from preferential social security contributions. In the case of players moving between EU countries, it may also be necessary to determine which country’s social security system applies under EU coordination rules.
Under the progressive tax scale or the 19% flat tax, a football player may deduct expenses that are properly connected with the business activity and meet the requirements set out in Polish tax law. Depending on the circumstances, deductible costs may include sports equipment, physiotherapy, legal services, and other expenses directly related to performing the contract. However, not every expense connected with sport, health, or the player’s lifestyle will automatically qualify as a tax-deductible cost. Each expense should be assessed individually and properly documented.
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