Business in Poland

Investment incentives

Poland incites investors with series of instruments of which the following are the most important:

  • government grants for investment projects important for national economy
  • investment incentives in the special economic zones
  • cash grants from EU funds
  • real estate tax exemptions

Financial support for investments project important for national economy

This type of aid provides earmarked subsidies from the state budget for investments projects important for national economy. The support is allocated to the investor by way of a Multi-Annual Support Programme (MASP). Sectors considered as important include: automotive, aviation, biotechnology, IT and electronics, BPO and R&D. In order to benefit from this aid investor has to create at least 500 new workplaces and incur eligible ivestments costs specified in the agreement.

The Special Economic Zones (SEZ)

​ Special Economic Zones are separated areas, in which business activity can be conducted under preferential conditions (corporate income tax exemptions). The main objective of this aid is to assist in the development of particular regions by enhancing their attractiveness for new investors. Currently there are 14 SEZ in Poland and they will operate till December 2020. In order to take advantage of SEZ incentives the investments expenditure should amount to at least EUR 100 000 and new workplaces have to be created.

Cash grants from EU funds

The grants are provided within the framework of Operational Programmes. Investor has to submit a comprehensive grant application which is evaluated by the relevant authorities. Cash grants are given to the best projects, especially to innovative projects generating new technologies and projects in renewable energy.

Real estate tax exemptions

This type of aid is a form of regional state aid. It is granted by local authorities for the specified period, usually from one to five years. The exemption usually depends on the number of new workplaces created.

SWOT for Poland

strengths

  • big internal market with 38 million people
  • favourable geographic location
  • trade rout between Central and Western Europe
  • comparatively low labour costs for well-qualified professionals
  • investment potential and human resources
weaknesses

  • poor energy supply network (problems in energy supplies)
  • a significant role of coal in the energy balance (in long term not in accordance with climate and environment protection policy of EU
  • a considerable dependence of some branches on exports and their sensitivity to fluctuation on foreign markets
opportunities

  • rules of public-private partnership and and licenses aiming at improvement of communication infrastructure
  • continued pursuit of deregulation, privatization, liberalization and competition
  • a big recipient of the EU funds
  • investments in infrastructure, IT, hotels, etc driven by 2012 football championship
threats

  • deterioration of business and consumer sentiment in Western Europe could slow the expansion of Polish exports
  • exchange rate variability
  • postponing the adoption of Euro
  • frequent changes in regulations which generate uncertainty among enterpreteurs