For retirees considering an international destination, Poland offers an affordable and culturally rich option. Compared to many of its European neighbors, Poland boasts a lower cost of living — even in its capital, Warsaw — making it an attractive choice for budget-conscious retirees. Nestled at the crossroads of Western and Eastern Europe, the country seamlessly blends historical charm, diverse architecture and a vibrant culinary scene. If you’re planning for retirement abroad, consulting with a financial advisor can help you develop a solid financial strategy.

Poland Cost of Living and Housing

According to cost-of-living database Numbeo, consumer prices in Poland are roughly 35% more affordable than in the U.S., when you exclude rent. If you look at rent alone, the cost of living in the eastern European country is 57% lower than in the U.S. This makes Poland an attractive destination for American retirees who are looking to cut spending and comfortably live off a pension.

For a specific comparison, let’s take a look at the Eastern European capital Warsaw, Poland’s most populous city. Rent in this capital is significantly lower than in New York City — 73% less. If you rent a one-bedroom apartment in Warsaw’s city center, you’ll pay approximately $1,093 each month. But if you rent a one-bedroom in New York City’s center, it will cost you roughly four times more at an average of $3,900.

Poland has a lot to offer, especially if you’re looking for a cost-effective place to retire compared to the United States. In order to make the move, you should take other costs into consideration. You’ll also want to make sure you can qualify for a visa.

Retire in Poland: Visas and Residence Permit

U.S. citizens are allowed visa-free entry into Poland for up to 90 days. But to become a legal resident in the Eastern European country, you will have to contact a Polish consulate in the U.S. to apply for a temporary or flat residence permit. You may have to show proof of sufficient funds to support your stay. So make sure that all of your documentation is in order.

When your residency permit has been approved, you’ll receive a residency card. This will help you find housing and pay your taxes. The first residence permit’s lifespan is only up to three years, but it can be renewed for longer periods.

Once you’ve lived in Poland for about five years, you’ll have the opportunity to pursue a permanent residence. This comes with two conditions: stable income and property you either rent or own, where you must be living. Your permanent residence card then has to be renewed every 10 years.

Keep in mind that you’ll have to pay some base processing fees for your permit application, and they depend on the type. So, prepare to pay upwards of $120 or more for yours.

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Healthcare in Poland

Article 68 in Poland’s constitution guarantees free medical care and hospital stay for all of its citizens. The eastern European country’s health service is financed through a national health fund. American retirees could join that fund to get emergency care and coverage for pre-existing conditions.

Many Polish citizens use private insurance to supplement their public health care coverage. While Poland’s public facilities have more treatment options than their private health center counterparts, private insurance allows covered individuals to sometimes get medical appointments and treatments faster.

Expats will have to obtain a personal identification number (PESEL) before they can apply for public health insurance. And they should also consider looking into private medical insurance to get the most comprehensive coverage for their health needs.

Poland’s Taxes

Like many European countries, Poland has different income tax regulations based on your residency status. Those who are naturalized are taxed on their worldwide income. Non-residents are only taxed on income earned from solely Polish sources. So, if your employer is not a Polish resident, you are not subject to income tax.

However, you can expect to pay a flat-rate tax for approximately 20% of your revenue during the first 183 days of the tax year in Poland. After you have resided in the country longer than six months, you will be subject to the same progressive tax rates as a resident. This ranges between 18% and 32%.

Note that even when you’ve paid your taxes accordingly to your residence status in Poland, you’ll still have to file a U.S. tax return.

Is Poland Safe?

According to the U.S. Department of State, Poland has a low crime level. This implies that both citizens and foreign nationals can live and travel in the Eastern European country with relative safety. General precautions are advised, as in other countries, to avoid crimes that, as infrequent as they may be, could target tourists or western expats. You should also note that crime in Poland is still significantly lower than in the U.S. And the public healthcare system can be a valuable safety net for unexpected travel injuries and other physical accidents.

Bottom Line

Poland is one of Europe’s most affordable retirement destinations, and it keeps up with neighboring nations in healthcare and culture. Expats will find the Eastern European country both safe and comfortable, easy to travel throughout, and one in which they can enjoy a slower pace of life while remaining very connected with nature. If you can work it into your retirement budget, then it could be the right place for you.

Tips to Help You Afford Retirement

If you have the option to move abroad for retirement, a financial advisor can help you understand all the moving parts of relocation, including the tax implications. SmartAsset’s free tool matches you with financial advisors who serve your area. You can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
You could comfortably retire in Poland, even in its capital, with an average Social Security income of $1,500 per month. For some, the value of your Social Security benefit can cover your cost of living depending on the area you settle in. Use SmartAsset’s Social Security calculator to estimate your benefit amount.
Whether you want to retire comfortably abroad or in the U.S., both an IRA or a 401(k) plan will offer you tax benefits, and help you grow your retirement savings with compound interest.