For business · Law City Katowice
Optimizing how doctors structure their practice
Katowice and all of Silesia · also available online
How a doctor's practice is structured determines the tax, the health insurance contribution and the liability — and the differences can be significant. We choose and implement a solution built on your actual numbers, for doctors in Katowice and Silesia.
What does optimizing a doctor's practice involve?
Optimizing a doctor's practice means choosing the legal form and tax treatment for the practice so that, while staying fully compliant with the law, tax and contribution burdens are as low as possible, and the structure matches how services are provided (contract work, an independent practice, or a medical entity). A doctor can operate as a sole proprietor, through a company, or through a medical entity structured as a limited liability company (spółka z o.o.), and each of these forms affects income tax, the health insurance contribution, liability and succession differently. The right option depends on the level and sources of income and on professional plans, so we choose it individually.
Who this is for
- Doctors working on contracts with medical entities, hospitals and the National Health Fund (NFZ)
- Doctors running an individual or group practice
- Doctors considering a company or a medical entity structured as a limited liability company (spółka z o.o.)
- High-earning doctors looking for legal ways to reduce their tax burden
- Doctors planning succession of their practice or protection of their assets
Scope of services
- Choosing and implementing the business structure: sole proprietorship, partnership, or a medical entity structured as a limited liability company
- Choosing the tax regime: flat-rate income tax, a 14% lump-sum rate for healthcare services, or Estonian CIT within a company
- Analyzing the health insurance contribution and combined burdens for contracts with medical entities, hospitals and the National Health Fund (NFZ)
- VAT settlements: the exemption for medical services and correct VAT treatment of non-therapeutic activities (expert opinions, rental, training)
- A succession plan for the practice and asset protection, including through a family foundation
- Ongoing legal and tax advice and support in dealings with the tax authorities (KAS)
Benefits and risks
Benefits
- A structure matched to actual income and the way services are provided
- A legal reduction in combined tax and contribution burdens
- Limited personal liability (through a company or medical entity)
- Correct VAT treatment for medical and non-therapeutic services
- Organized succession and asset protection
Things to keep in mind
- The wrong structure can raise your tax and health insurance contribution instead of lowering them
- Some activities without a therapeutic purpose are subject to VAT
- A company or medical entity means more accounting and formal obligations
- Changing structure mid-year is often not worthwhile without prior analysis
Frequently asked questions
Which tax regime is best for a doctor?
It depends above all on the level of income and costs. At higher income levels, the 19% flat-rate income tax often works well, while at low cost levels the 14% lump-sum rate for healthcare services can be attractive. At very high income levels, it's worth considering a limited liability company under Estonian CIT. There's no single right answer for everyone, so we compare the options using your actual numbers.
Does a doctor have to pay VAT?
Healthcare services aimed at prevention, preserving, saving, restoring and improving health are VAT-exempt under Article 43(1)(18) and (19) of the VAT Act. Activities without a therapeutic purpose can be taxable, however — for example, some certificates and tests issued for court or insurance purposes, as well as rental income or training. The line isn't always obvious, so it's worth establishing it in advance.
Can a doctor run a practice as a limited liability company?
Yes. A doctor can operate as a medical entity structured as a limited liability company, registered with the register of medical entities (RPWDL). This structure limits personal liability and opens the door to Estonian CIT, but it comes with greater formal and accounting obligations. Whether it pays off depends on the scale of the practice, which we assess individually.
When does it make sense to switch from a sole proprietorship to a company?
Most often when income is high enough that the combined burden of tax and the health insurance contribution under a sole proprietorship becomes noticeable, or when protecting personal assets and organizing succession matters. Making the switch, though, requires analyzing the tax consequences of the conversion itself. We run the numbers on both scenarios before we change anything.
How long does it take to put a new structure in place?
Simple changes, like choosing a tax regime for the coming year, can be arranged in a few days. Converting into a company or setting up a medical entity usually takes a few weeks, depending on registration with the National Court Register (KRS) and the RPWDL. We give you a timeline and a quote after the first conversation.
Can I combine a hospital contract with my own practice?
Yes, many doctors combine a contract with an individual practice. Each source of income can be taxed and settled for VAT differently, so everything needs to be structured consistently to avoid mistakes and inflated burdens.