Business

A company car (JDG) for Ukrainians in Poland

A car in the business is a natural step for many entrepreneurs from Ukraine — courier work, services, trade, client visits. But before counting the tax saving, you must clear two hurdles: the conditions for running a sole proprietorship as a foreigner, and the rules for accounting for a car, which tightened noticeably in 2026. Both topics below — concretely and without marketing promises.

In short: To run a JDG you need legal residence and a PESEL number. A company car: operating leasing is usually best at 23% VAT, VAT deduction is 50% (mixed use) or 100% (business only, VAT‑26 + mileage log). From 2026 the cost cap dropped to 100,000 zł for combustion cars.

1. Can a Ukrainian citizen run a sole proprietorship?

Yes — a Ukrainian citizen who is legally resident in Poland and has a PESEL number may start a business on the same terms as a Polish citizen and register it in CEIDG. Registration is free and can be done online at biznes.gov.pl (a Trusted Profile is required). The same applies to the spouse of a Ukrainian citizen who came to Poland from Ukraine because of the war.

The key condition is legal residence, not merely holding a PESEL. If your stay ceases to be legal, your CEIDG entry will be removed by administrative decision. Legality is lost, among others, when your residence title expires or if you leave Poland for more than a month (except assignments by a Polish entity).

Caution — the rules are moving: Access rules for Ukrainian citizens to sole proprietorships changed during 2026, and sources give different dates and transitional conditions. Before you register or restructure, verify the current state at biznes.gov.pl or with an adviser — especially if your residence title expires soon. An alternative, available largely regardless of residence status, is a limited liability company (sp. z o.o.).

2. A car in the business: leasing, loan or cash?

The mechanics are the same as for Polish entrepreneurs:

Operating leasing — the lessor stays the owner and you book the instalments (capital + interest), the initial fee, insurance and registration as costs. VAT is spread across instalments (better cash flow). Minimum term: 2 years.
Purchase (cash/loan) or a finance lease — the car enters your fixed assets and you depreciate it; VAT is paid upfront at purchase.

For a new entrepreneur, leasing is often easier to obtain than a bank loan — fewer documents, a faster decision, less weight on a long BIK history. That is a real advantage if you have been in Poland only a short time.

3. VAT: 50% or 100%?

50% VAT — mixed use (business and private). The default, safe option with a single car in a sole proprietorship.
100% VAT — only for exclusively business use: a VAT‑26 filing, a mileage log and a usage policy. In practice a single car also driven privately will not meet this — and the tax office does check.
Running costs (fuel, servicing, tyres, car wash): 75% for mixed use, 100% for business-only.

A car for your business — don’t overpay at the start: Check the real value → VARTOCAR report 49 zł

4. The 2026 change: the cost cap fell to 100,000 zł

This is the key change of the year, and it applies to you exactly as to a Polish entrepreneur. From 2026 the cap for booking a car’s value as cost is:

100,000 zł — combustion cars emitting ≥ 50 g CO₂/km (practically all petrol and diesel),
150,000 zł — low-emission cars (some plug-in hybrids),
225,000 zł — electric and hydrogen.

Anything above the cap will never be a tax cost. Basis: art. 23(1)(4) of the PIT Act. In operating leasing the cap applies proportionally to the capital part of the instalment (interest is fully deductible). More figures in the article on financing a car purchase.

5. The lump-sum tax trap

Many entrepreneurs from Ukraine choose the lump-sum tax (ryczałt) because it is simple. But under it you cannot deduct costs — so the entire tax benefit of a car (instalments, depreciation, fuel) disappears. Only VAT remains, if you are VAT-registered. Before buying a car „for the business to save tax”, check whether your tax form even allows it.

6. The order that saves money

Check your residence title and whether a sole proprietorship is the right form for you (alternative: sp. z o.o.).
Decide your tax form — under the lump-sum tax a car brings no cost benefit.
Choose the financing (operating lease vs loan) — compare offers.
Verify the car’s value before buying — a loan or lease on an overpriced car is the worst case. If buying from a private seller, also read what foreigners must watch for.

Compare leasing, loans and business accounts at Finumero →

This material is informational and is not tax or legal advice. Rules on residence and business activity of foreigners change — verify the current state before deciding.

Frequently asked questions (FAQ)

Can a Ukrainian citizen open a sole proprietorship in Poland? Yes, if legally resident in Poland with a PESEL number — on the same terms as a Polish citizen. CEIDG registration is free. Access rules changed during 2026, so verify the current state before registering.

What happens to my business if I lose legal residence? The CEIDG entry is removed by administrative decision. Legality is lost, among others, when your residence title expires or if you leave Poland for more than a month.

How much VAT can I deduct on a car in a sole proprietorship? 50% for mixed use (business and private) or 100% for business-only use — the latter requires a VAT-26 filing, a mileage log and a usage policy.

Is a company car worth it under the lump-sum tax? Under the lump-sum tax you cannot deduct costs, so the benefit from lease instalments, depreciation or fuel disappears. Only the VAT deduction remains, if you are VAT-registered.