CJEU - Recent Developments in Direct Taxation 2025

1. Introduction

Poland’s personal exit tax regime imposes a 19% tax on unrealized capital gains of individuals who cease to be Polish tax residents, as a result of which Poland loses the right to tax income from the future disposal of the individual’s assets. The regime is regulated in the Personal Income Tax Act of 26 July 1991, in particular Articles 30da-30di, which introduce taxation of so-called unrealized gains (niezrealizowane zyski) upon a change of tax residence or the transfer of assets abroad. The tax applies where the aggregate market value of the assets covered by the regime exceeds PLN 4 million. The tax base is determined on an asset-by-asset basis as the difference between the market value of the asset on the day preceding the change of residence and its tax acquisition cost. While taxpayers may opt to pay the tax immediately or, where the transfer of residence is to another EU or EEA Member State, in installments over a period of up to five years, the taxable S. 230event is the mere change of residence itself, rather than the actual realization of any gain. The underlying rationale of the regime is to tax latent appreciation at the moment when Poland’s taxing jurisdiction...