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How to Pay Contractors in Poland: Complete 2025 Guide

For businesses paying independent contractors in Poland

Quick Summary

Best payment methods for Polish contractors:

  1. Wise (lowest fees, best rates)
  2. SEPA transfer (for EUR payments within EU)
  3. PayPal (widely accepted)
  4. Payoneer (popular alternative)

Key requirements:

  • NIP (Polish tax ID)
  • Written service agreement (umowa zlecenie or umowa o dzieło)
  • Currency considerations (EUR or PLN)
  • VAT invoice (faktura VAT) for services
  • ZUS compliance (social security - contractor's responsibility)

Why This Guide Is Different

Poland is a growing tech hub in Central Europe with competitive rates and EU membership benefits. If you're hiring contractors in Poland, you need to understand:

  • Payment method preferences (Wise and SEPA transfers are popular)
  • Currency considerations (EUR or PLN - both widely used)
  • NIP requirements (Polish tax identification number)
  • VAT invoicing system (faktura VAT)
  • Contract types (umowa zlecenie vs umowa o dzieło)
  • Time zone advantages (CET/CEST is UTC+1/+2, perfect for European business hours)

Payment Methods Compared

MethodCostSpeedBest For
Wise$2-$61-2 daysRegular payments, best exchange rates
SEPA Transfer$0-$51-2 daysEUR payments within EU
PayPal$5-$12InstantWidely accepted, instant transfers
Payoneer$5-$101-3 daysPopular with Polish freelancers
Bank Transfer$15-$353-5 daysLarge amounts, traditional method

Recommended: Wise or SEPA

Why Wise/SEPA are best for Poland payments:

  • Lowest fees ($0-$6 vs $15-$35 for traditional bank transfers)
  • Real mid-market exchange rate (Wise)
  • Fast transfers (1-2 business days)
  • SEPA is ideal if you have EUR account and contractor accepts EUR
  • Wise works for both EUR and PLN

Currency Considerations

Polish contractors are comfortable with both EUR and PLN, depending on their business setup.

EUR vs PLN

Pay in EUR if:

  • Contractor prefers EUR (common for international work)
  • You have EUR account or operations in EU
  • Using SEPA transfers
  • Contractor works primarily with EU clients

Pay in PLN if:

  • Contractor specifically requests PLN
  • Contractor's expenses are primarily in PLN
  • Simpler for contractor's local accounting

Pro tip: Many Polish contractors are flexible on currency. Ask your contractor which they prefer - EUR is common for international work, PLN for local expenses.

Tax and Compliance Requirements

NIP (Tax ID)

NIP (Numer Identyfikacji Podatkowej) is Poland's tax identification number.

  • Required for: All contractors providing services
  • Format: 10-digit number
  • Your responsibility: Verify contractor has valid NIP
  • Contractor's responsibility: Register with tax office and maintain NIP

VAT Invoice (Faktura VAT)

Polish contractors must issue VAT invoices for their services.

  • What it is: Official invoice with VAT details
  • VAT rate: Typically 23% for services (some exemptions apply)
  • Reverse charge: For B2B services to foreign companies, VAT may not apply (reverse charge mechanism)
  • You keep: Invoice for your tax records

Contract Types

Poland has specific contract types for contractor work:

  • Umowa zlecenie: Commission contract (for ongoing services)
  • Umowa o dzieło: Contract for specific work (for defined deliverables)
  • B2B contract: Business-to-business (contractor operates as sole proprietor)

Important: As a foreign company paying a Polish contractor, you typically don't withhold Polish taxes. The contractor handles their own tax compliance and ZUS (social security). For B2B services, the reverse charge mechanism often applies for VAT.

Why Hire Polish Contractors?

  • EU membership: Easier compliance and payment within EU
  • Skilled workforce: Strong engineering and technical talent
  • Competitive rates: 30-50% lower than Western Europe
  • Time zone: Perfect overlap with European business hours
  • English proficiency: Many tech workers speak English well
  • Growing tech hub: Thriving startup and tech ecosystem

Tools for Managing Polish Contractors

Kontrable is built specifically for managing international contractors:

  • Track payments across Wise, SEPA, PayPal, and other methods
  • Store contracts and VAT invoices
  • Handle multiple currencies (EUR, PLN, USD, etc.)
  • Generate payment reports for accounting
  • No per-contractor fees (unlike Deel at $49/month per contractor)
Join Kontrable Waitlist

Frequently Asked Questions

Q: Should I pay Polish contractors in EUR or PLN?

A: Both are common. Ask your contractor which they prefer. EUR is popular for international work, PLN for local expenses.

Q: What is the reverse charge mechanism?

A: For B2B services between EU countries, the buyer (you) may be responsible for VAT in your country, not the Polish contractor. This means the contractor doesn't charge Polish VAT on the invoice.

Q: Do I need an EOR platform for Polish contractors?

A: No. EOR is for employees. Polish contractors handle their own tax and ZUS compliance. You just need a good payment method (Wise/SEPA) and contractor management tool (Kontrable).

Q: What's the best payment method for Poland?

A: Wise offers the lowest fees ($2-$6) and works for both EUR and PLN. SEPA is also excellent if you have EUR account and contractor accepts EUR ($0-$5).

Get Started

Managing Polish contractors?

  1. Verify contractor has valid NIP
  2. Set up Wise account or SEPA transfers
  3. Create written service agreement (umowa zlecenie or umowa o dzieło)
  4. Ask contractor for currency preference (EUR or PLN)
  5. Request VAT invoice for each payment

Want to automate this?

Kontrable launches January 2026 with contractor management tools built for international teams.

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