How to start investing in foreign markets from Poland

Why invest abroad?

GPW is less than 1% of global stock market capitalization. By limiting yourself to the Polish market, you miss tech giants (Apple, Microsoft, Nvidia), healthcare leaders (Johnson & Johnson, Novo Nordisk) and thousands of other companies. Global investing isn't a luxury — it's the foundation of diversification.

Two approaches: ETFs vs individual stocks

Global ETFs — simplest

One ETF gives exposure to the whole world:

• Vanguard FTSE All-World (VWCE) — ~3,700 companies worldwide
• iShares Core MSCI World (IWDA) — developed markets (~1,500 companies)
• iShares Core S&P 500 (SXR8) — 500 largest US companies

You buy them on European exchanges (Xetra, Euronext) in EUR — these are UCITS versions, available to European investors.

Individual stocks — for advanced

Want to buy Apple, Tesla or ASML directly? You can, but remember:

• Concentration risk (one company isn't a portfolio)
• Need for fundamental analysis
• More complicated taxes

How to buy — step by step

Step 1: Choose a broker with access to foreign markets

Polish brokers:

• Bossa (BM BOŚ) — access to Xetra, NYSE, NASDAQ; IKE/IKZE with foreign ETFs
• mBank eMakler — foreign markets, integration with account
• XTB — 0% commission up to certain turnover, many markets

Foreign brokers:

• Interactive Brokers — broadest access, low commissions, professional platform
• DEGIRO — low costs, simple interface, European broker

Step 2: Open account

Online procedure — ID, verification, verification transfer. With foreign brokers you may need W-8BEN form (see below).

Step 3: Transfer funds

Polish brokers — transfer in PLN. Foreign — usually in EUR or USD. Exchange rate is an additional cost — compare broker rates with online exchanges.

Step 4: Place order

European ETFs (UCITS) — buy on Xetra or Euronext in EUR. The order looks the same as on GPW — choose instrument, quantity, order type (limit/market).

W-8BEN form

What is it?

W-8BEN is an IRS (US tax authority) form that certifies you're not a US tax resident. Thanks to it, withholding tax on US company dividends drops from 30% to 15% (under the double taxation treaty between Poland and USA).

Who must file it?

Anyone holding US stocks or ETFs paying dividends. You file the form with your broker — usually online, with one click.

Validity

W-8BEN is valid for 3 years — the broker will remind you to renew.

Note: IKE/IKZE

On IKE/IKZE, W-8BEN usually doesn't work — Polish brokers can't apply the reduced rate. Therefore, on IKE/IKZE it's better to choose ETFs domiciled in Ireland (UCITS), which apply the reduced rate at fund level.

Taxes — what you need to know

Capital gains

You sell at a profit → pay 19% tax in Poland. You settle yourself in PIT-38 (foreign broker doesn't issue PIT-8C).

Dividends

• US companies: 15% withholding tax (with W-8BEN) + 4% top-up in Poland = 19% total
• European companies: withholding tax depends on country (0-30%), you deduct from Polish tax
• UCITS ETFs (Ireland): withholding tax at fund level, you pay 19% on distributed dividend

Currency conversion

You calculate profit/loss in PLN at NBP rate from the day preceding the transaction. This is important for tax settlement.

IKE/IKZE

Investments on IKE/IKZE are exempt from Belka tax in Poland, but not from withholding tax abroad. Therefore, on IKE/IKZE prefer accumulating ETFs (not paying dividends) domiciled in Ireland.

Currency — risk and opportunity

Investing in USD or EUR, currency exposure works both ways:

• PLN weakening → Your foreign investments are worth more in PLN
• PLN strengthening → You lose on currency conversion

Long-term, currency "washes out" — don't hedge currency risk unless you have a specific reason.

How Freenance can help

Freenance automatically converts foreign assets to PLN and shows:

• Global portfolio in one view (PLN, EUR, USD)
• Currency impact on portfolio value
• Geographic diversification in percentages
• Estimated tax obligations from foreign investments

👉 Track global investments with Freenance — freenance.io