Increasing Number of Foreign Businesses in Poland – Ukrainians Prevail
According to the Social Insurance Institute, the number of foreigners starting their own businesses in Poland is increasing. Nowadays, there are 4500 more entrepreneurs in Poland than four years ago.
One of the reasons seems to be the fact that in 2018 Polish government introduced the Polish Investment Zone program. This program is an extension of Special Economic Zones – the tax relief is available for investments in every location in Poland. Poland has fully become an economic zone. The Regulation of 28 August 2018 of the Council of Ministers on public aid granted to entrepreneurs for executing new investment projects (came into force on 5th September 2018).
The Benefits of Foreigners Businesses in Poland:
From the moment of implementing the new law, investors are able to benefit from the income tax exemption for new investments located anywhere in Poland. It provides an opportunity for tax exemption for all investments in Poland over 10, 12, or 15 years given that they fulfill specific entry criteria. The PIZ exemption allows for CIT exemption of income generated by activities covered by a decision on support (defined by the PKWiU codes) and conducted within the territory specified in this decision.
The foreigners working or businesses in Poland pay contributions to the Social and Pension Insurance Fund, and the number of them is constantly growing.
In addition, the number of foreigners who are self-employed in Poland is growing. It has already reached 19,5 thousand over the past three years. In total, citizens of 148 countries are engaged in self-employment in Poland.
683,000 foreigners were registered with ZUS in 2019. This means more than a 10-fold increase in their number in the Polish Insurance System over the past decade.
Most of the business activities in Poland are usually carried out by the citizens of Ukraine and Vietnam. Russians and Belarusians come next. In total, out of 19,000 businesses in Poland, 4,800 are owned by the citizens of Ukraine.
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