Why is Poland an Attractive Country for Foreign Investors?

Searching for a competitive market for starting a business in Europe? Choose Poland.

Numerous jurisdictions across the world can offer a set of competitive advantages for those who want to expand their business activities outside their country of origin. The advantages can range from various tax incentives, the types of legal entities investors can use, the easiness of doing business and the foreign investment policies, but it can also refer to the quality of the local workforce or the market conditions available for the business activity in which the investor is interested.

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Each jurisdiction has its particularities and when choosing to expand in a foreign country, the above mentioned, alongside other relevant aspects (for example, the tax system available for a specific business form or the business start-up costs) are of high importance.

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When setting up a company in Poland, investors can start a business in sectors such as the machine building, the textiles industry, iron and steel production, food processing and beverages or shipbuilding, these being some of the main economic activities developed in this country. It is necessary to know that after 1990, Poland positioned itself as one of the main economies in Europe, which experienced one of the highest GDP growths.

Businessmen who are searching for a competitive market for starting a business in Europe can choose Poland due to the following:
• tax incentives for local and foreign investors;
• the Polish tax incentives are also available for start-up companies;
• companies can benefit from full tax exemptions for specific types of taxes;
• such exemptions are generally applicable for a period of two years and they can apply to start-up businesses or to those involved in research and development activities;
• specific tax advantages can be obtained when investing in the country’s economic zones.

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The country has 14 such economic zones, which were created with the purpose of developing the economic growth of specific regions. In order to start a business in one of its special economic zones, investors must apply for certain permits, issued by the local authorities.

In other European regions, other tax advantages or benefits can be available for foreign businesses. Companies operating in the Isle of Man can obtain relevant tax advantages – for example, there is a full tax exemption on the corporate income tax for most of the business activities. The corporate income tax can apply at a rate of 10% for companies operating in the banking sector or those registered in the retail industry, provided that they have a specific annual income.

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