Investment in Poland – what to remember

CEE region offers great opportunities for investment. Whether you are interested in opening a manufacturing plant, outsourcing some of your services or are looking for a new market, the territories in the east of Europe can offer you a lot.

Poland is the largest country in the CEE region. It has a population of over 36 million, several universities, and various special economic zones in different parts of the country. It is a throbbing heart of Europe, linking the old continent with the “new” European states. It has been an EU member since 2004 and has joined the Schengen area.

The main issue to consider when investing in Poland is the legal form of your Polish entity. Spółka z ograniczoną odpowiedzianością, corresponding to a limited liability company, is one of the more popular solutions. Another option is spółka komandytowa, or general partnership.

Are you planning to employ personnel? If so, take some time to consider various types of employment contracts present in the Polish law. You may hire staff full-time, or just to perform specific tasks.

A contract for undetermined period offers job security, healthcare and pension benefits. However, it is more expensive from the taxation point of view, both for the employer and the employee. Short-term contracts offer more flexibility, but also may make your staff feel underappreciated.

As to employees, do you know that Poland has several universities and a large part of its population was, is, or intends to be a student? The country offers a large pool of professionals. What is more, personnel costs and wages are competitive in comparison with the west of Europe. The minimum monthly salary from January 2017 is 2,000 PLN (after tax), currently an equivalent of around 450 euro.

If you intend to break new ground in your field of activity, Poland may be a good choice. Polish government is keen to boost innovativeness in Poland and has recently introduced many changes in regulations and incentives for entrepreneurs investing in research and development.

To learn more about investing in Poland, visit www.paiz.gov.pl, a web portal of the Polish Information and Foreign Investment Agency.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.