Care services on lump-sum tax in Poland (2026) — a guide for caregivers

The lump-sum rate depends on PKWiU (Polish Classification of Goods and Services). For care services the code is PKWiU 88, which qualifies for the 8.5% rate.

• PKWiU 88.10.11.0 — day-care services for children
• PKWiU 88.10.19.0 — care services for the elderly and disabled
• PKWiU 88.99.09.0 — other care services

The difference between 8.5% and 15%

Example: a caregiver earns 2,000 EUR/month (~8,600 zł), 12 months = 103,200 zł/year.

| Rate | Tax | Difference | |---|---|---| | 15% (wrong) | 15,480 zł | — | | 8.5% (correct) | 8,772 zł | 6,708 zł less |

That is 6,708 zł/year of difference — money that stays in your pocket.

Registering a JDG as a caregiver

1. CEIDG

You register the sole proprietorship (JDG) in the business registry (CEIDG). In the filing:

• PKD 87.90.Z (residential care facilities) or PKD 88.10.Z (care for the elderly)
• Form of taxation: lump-sum tax (ryczałt)
• Address: your address in Poland

2. ZUS

After registration you file with social insurance (ZUS):

• Start-up relief for the first 6 months (health contribution only)
• Small preferential ZUS for the next 24 months
• Large ZUS from the 31st month

3. Tax Office

At the Tax Office you file:

• NIP-RCZ (choice of lump-sum tax) within 7 days of registering the JDG
• VAT-R if you register for VAT (usually not needed)

Who can use the 8.5% lump-sum rate?

Anyone running a care business classified under PKWiU 88. This includes:

• Caregivers of the elderly in Germany
• Child caregivers (nannies)
• Home-care workers
• Caregivers for the disabled

Condition: the activity must be classified as "care services" (PKWiU 88.10 / 88.99), not "medical services" (PKWiU 86) or "recruitment services" (PKWiU 78).

Care work in Germany — how it works tax-wise

A caregiver works in Germany but runs a JDG in Poland. What are the rules?

1. PIT — Poland

As a Polish tax resident, you pay PIT in Poland on all worldwide income. Earnings from Germany are added to your Polish income.

2. Proportional deduction method

Poland applies the proportional deduction method for foreign income. This means you can deduct a portion of Polish tax, proportionally to the share of foreign income in total income.

Important: Poland and Germany have a double-taxation treaty. This means you will not pay tax twice.

3. VAT and care services

Care services are VAT-exempt in Poland (Art. 43 sec. 1 item 18–19 of the VAT Act). This means:

• You do not issue VAT invoices
• You do not deduct input VAT
• You are not an active VAT taxpayer (unless you want to be)

4. VAT threshold

You are VAT-exempt if turnover from care services is below 200,000 zł/year. Most caregivers fall within this threshold.

Costs on lump-sum tax — what can you deduct?

As explained in the guide on lump-sum tax and costs — on lump-sum tax you cannot deduct costs of earning revenue. But you can deduct:

• Social ZUS contributions (from revenue)
• Health contribution (from revenue)
• Donations (up to 6% of revenue)
• Employee wages (if you employ workers)

You cannot deduct:

• Travel costs to Germany (coach, fuel, flights)
• Third-party liability insurance
• Training
• Equipment (computer, phone)
• Agent/broker fees

Health contribution on lump-sum tax

The health contribution on lump-sum tax is fixed, depending on annual revenue:

• Up to 60,000 zł: 461.66 zł/month (5,540 zł/year)
• 60,000 – 300,000 zł: 699.11 zł/month (8,389 zł/year)
• Above 300,000 zł: 1,258.39 zł/month (15,101 zł/year)

Most caregivers earn 80–120k zł/year → they fall in the second bracket (699.11 zł/month).

Agent / broker — how to settle?

Many caregivers work with agents (Polish or German) or care agencies. Here is what matters:

• If the agent issues an invoice for commission — that is the agent's revenue, and you deduct the cost on lump-sum? No, you cannot deduct (lump-sum has no costs).
• If the agent deducts commission directly from your pay — that is your loss, but is it treated as a cost? No, because on lump-sum you cannot deduct costs.
• If the agent acts as a subcontractor — then they are a separate entrepreneur.

Pitfalls and most common mistakes

1. Thinking care is 15% lump-sum

No. Care (PKWiU 88) is 8.5%, not 15%. Check with your accountant that you have the right PKWiU code.

2. Not filing NIP-RCZ on time

You file the choice of lump-sum tax as NIP-RCZ within 7 days of registering the JDG. If you are late — you default to the tax scale (32%).

3. No revenue register

On lump-sum tax you must keep a revenue register. Every payment from Germany, every invoice — everything must be recorded.

4. Double taxation

Poland and Germany have a double-taxation treaty. But if you do not report German income in Poland — the Tax Office may impose penalties.

5. ZUS in care work

Start-up relief and small ZUS are available in care work — if you have not run a JDG in the last 60 days. Check whether you qualify.

FAQ

Does a caregiver need a JDG?

If she works through a care agency (employed in Poland or Germany) — no. If she works "on her own account" directly with a family in Germany — yes, she must have a JDG.

Can I deduct travel costs to Germany?

Not on lump-sum tax. Travel costs, coach, fuel — you cannot deduct.

Is care in Germany PKWiU 88?

Yes, if it is a service of caring for an elderly or disabled person. PKWiU 88.10.19.0.

Do I need to be on VAT?

No. Care services are VAT-exempt (Art. 43 sec. 1 item 18–19). If turnover is below 200,000 zł — you are exempt.

Do I need to report German income in Poland?

Yes. As a Polish resident, you pay PIT on worldwide income. The double-taxation treaty prevents paying twice.

Need help with care-service accounting?

I handle accounting for caregivers of the elderly in Germany — 8.5% lump-sum tax (ryczałt), revenue registers, ZUS and PIT declarations, Tax Office filings. From 49 zł + VAT per month.

Email me at [email protected] or visit oxyok.com/pl.

Note: Lump-sum rate 8.5% for PKWiU 88.10 and 88.99 (care services). PL-DE double-taxation treaty (proportional method). Care services VAT-exempt (Art. 43 sec. 1 item 18–19). Consult an accountant before making decisions.