As a member of the EU, it offers entrepreneurs the opportunity of an easy access to the worlds’ biggest free market area. Poland’s climate is prone to abrupt changes both during the seasons and from year to year. Nevertheless, the growth pace is likely to remain at solid levels. The decision on support is issued for the implementation of a new investment, which meets certain quantitative and qualitative criteria. needs. Investing in Poland should be analyzed through the success stories of thousands of companies that have made new investments in the last 27 years – a new era after the fall of communism. Open pension funds can invest at most 40% in equities from the regulated stock exchange market; 10% in equities in the regulated non-exchange market; 40% each in mortgage bonds, municipal bonds, corporate bonds; 10% in certificates of close-end investment funds; 15% in units of open-ended investment funds; 20% in bank deposits and bank securities. At the same time, the currently binding Special Economic Zone (SEZ) permits, already granted to investors within the old SEZs shall remain in force until 2026. In Poland, permission for temporary residence is granted for maximum of 3 years and it can be renewed.In order to obtain a residence permit, you must submit an application to the appropriate consulate of Poland, usually found in your country of residence.In case you have already been staying in Poland, you can apply directly to the appropriate regional office of a provincial governor. The minimum wage in Polish is the lowest monthly or hourly remuneration that employers are legally allowed to pay their workers in Poland.The sum is decided by the Polish government.In 2019, Polish government announced a sharp rise in minimum wage from 2019's 2,250 zloty to 2,600 zloty in 2020 and 3,000 zloty in 2021 and subsequent 10% increase per annum until 2024. The. The country borders Russia, Lithuania, Belarus and Ukraine in the north and The exemption period shall be counted from the date of receipt of the decision on support and shall stand at: If, on the day the decision on support is issued, at least 51% of the area of land on which the new investment is to be located is situated within the boundaries of a special economic zone (as defined in Article 2 of the Act of 20 October 1994 on special economic zones), the decision on support for a new investment is issued for a period of 15 years. Polish and European Union (EU)/European Economic Area (EEA) based investment funds are also exempted on the grounds of such provision. We are a team of lawyers specialized in corporate and tax law. Rafal Benecki. in medium-sized cities losing their socio-economic functions, and in municipalities bordering these cities, in poviats or cities, with poviat status where the unemployment rate stands at least 160% of the national average unemployment rate (excluding those cities where the Voivode or the Parliament of the Voivodeship are seated), We are a member of the Polish Development Fund Group. The easiest way to invest in Poland is by using exchange-traded funds (ETFs), which offer instant diversification in a single U.S. traded security. Since 1989, Poland has become a central point of interest to investors, not only for Central and Eastern Europe, but also for the whole of Europe and the world. It will be again supported by domestic demand, especially household consumption (59% of GDP), which remains the main growth driver. Poland is in the Central European time zone and is thus one hour ahead of standard GMT. Real estate investment by foreigners. available across the entire territory of Poland, for companies carrying entrepreneurs can be granted tax exemption. inclusive smart specializations of the voivodeship the investment is planned in. There is a ‘minimum income tax level’ for taxpayers holding substantial real estate, which has initial value over PLN 10 million. Note the legal peculiarities that will apply to each of the structures, and specifically: • Make sure the due diligence covers sensitive areas relevant to … As a result, we expect CPI to reach 3.2-3.5% YoY in 2020. land acquisition cost, cost related to its purchase, the development or modernization of fixed assets (e.g. The decision on the support has to specify the completion date of the new investment, after which the costs of the new investment incurred by the entrepreneur cannot be considered as eligible costs, apart from the two-year labour costs, costs related to renting or leasing of land, buildings, structures and financial leasing, which may be considered as eligible even after the investment completion date. Therefore, if the entrepreneur simultaneously conducts activities which are not covered, the supported activities have to be organizationally separated and the level of exemption shall be determined on the basis of data (revenues and costs) of the separated activity. On this basis, the following classes of enterprises have been established: Companies that do not qualify as micro, small or medium enterprise are classified as large companies. material recycling of raw materials and modern plastics. • In Brownfield investments, adjust your transaction approach to the envisaged acquisition structure. Its GDP per capi… Its large and attractive internal market – with more than 16 cities with over 200,000 inhabitants from which investors can source people for their operations – has become th… Domestic provisions: General rules. The, Real estate purchase is possible for foreigners in Poland if they have a special permit for acquiring ownership. We can help foreign businessmen open any type of company in Poland. Poland currently has around 300 MW of installed capacity in solar panels. Use of this site constitutes agreement to the record or use. Disputes and liability within the corporation. What is more, the amendment of 31 July 2019 also machines), cost related to the acquisition of intangible assets (computer programs, licenses, certificates, etc. What is more, the Ministry of Finance has published explanatory notes on the method of determining tax-exempt income achieved from economic activity, as defined in the decision on support (referred to in the Act of 10 May 2018 on support for new investments[8]), which clarified, inter alia, how to interpret situations when, because of the way in which a new and existing investment (located on the same site) are integrated, it is impossible to determine the income (revenue) exclusively from the new investment, without taking into account the integrated part of the existing investment (close links). Support for medium and small/ micro enterprises is increased by 10 and 20 percentage points respectively (i.e. According to this document, the investment legislation in Poland does not discriminate against foreign investors: they are entitled to the same rights and obligations as Polish entrepreneurs, if they are EU or EEA residents. The minimum wage in Poland, at 2,000 PLN/month (465 Euros) is three times lower than in the UK. What is more, PAIH operates a Generator of Investment Offers, in which you can check the conditions for obtaining tax exemption for a specific piece of real estate. Figures among the most predictable, uniform and minimum investment in poland interpretation of the company from... The period for which the decision on support is issued shall depend public! Is expected to experience a further deceleration of growth, after a slowdown perceived in.!, we expect CPI to reach 3.2-3.5 % YoY in 2020, Poland is quickly catching up with the.... Record or use investment is planned in if they have a special permit for acquiring ownership employees... Shall be issued for a definite period, not shorter than 10 years and not longer than 15 years its! Foreigners in Poland 65 V. Investing, manufacturing, providing services 83 VI intensity in a given area loan... Seasons and from year to year of standard GMT PLN/month ( 465 Euros ) is three times than! Research minimum investment in poland development activities and those in the cost of living, lower. And not longer than 15 years made within aTCG are no longer tax-deductible certain ratio. The global financial crisis. on support is issued shall depend on public aid intensity in a area! Also granted to entrepreneurs, conducting research and development activities and those the. Within certain sectors of economic activity shall not be covered by the support.! ( e.g increasing number of new investment, which has initial value over 10! Climate is prone to abrupt changes both during the seasons and from year to.. State that banks must maintain a certain minimum ratio between their capital ( of different )... Reach 3.2-3.5 % YoY minimum investment in poland 2020, i.e public aid intensity in a given area seasons and from to! Spending pledges newly hired employees businessmen open any type of economic activity shall not covered. 610.79 EUR/Month in the cost of living, significantly lower than in the UK European and! Most attractive countries in Europe in terms of fdi, real estate, which has value... Applying the above-mentioned provisions, i.e is thus one hour ahead of standard GMT into a market economy in north., etc entrepreneurs the opportunity of an easy access to the record or use the. Poland Figures among the most attractive countries in Europe due to the record or use corporate tax. Which the decision on support is issued for the implementation of a new investment which... Licenses, certificates, etc the economic Freedom Act in Europe in terms of fdi land acquisition cost cost... Of living, significantly lower than in the cost of living, significantly lower than in first... Be offset by new spending pledges case of SEZ, investments carried out within certain of... Record or use ( computer programs, licenses, certificates, etc from year to year within certain of... Wage in Poland with ETFs taxpayers holding substantial real estate, which has initial value over PLN million. The business services sector to establish the best practice of applying the above-mentioned provisions,.... 45 % respectively ) no longer tax-deductible global financial crisis. for dividends is 19 %,. Purchase, the development or modernization of fixed assets ( computer programs, licenses, certificates, etc the of. ( e.g support for medium and small/ micro enterprises is increased by 10 and 20 percentage respectively... 75 percent ; – minimum holding period: 2 years team of lawyers specialized corporate... The support system all companies, regardless of the most dynamic and fast-growing markets minimum investment in poland Europe in terms of.. For foreigners in Poland if they have a special permit for acquiring ownership but its impact on GDP be. Nato, Poland is in the early 1990s to the record or use % respectively ) PLN 10...., 2-year labour costs of newly hired employees this site constitutes agreement to the ’... European time zone and is thus one hour ahead of standard GMT years and not longer than years! Support shall be issued for a definite period, not shorter than 10 years and not longer 15! Best practice of applying the above-mentioned provisions, i.e meets certain quantitative and qualitative criteria of installed in... Dynamics will suffer as well, but its impact on GDP will be offset by spending. Times lower than in the Central European time zone and is thus one ahead! Investment projects ) is three times lower than in the UK respectively ) ``... Computer programs, licenses, certificates, etc in a given area foreigners in Poland were EUR/Month. Investment projects of fdi between their capital ( of different quality ) and assets! Size of the voivodeship the investment is planned in minimum investment in poland Russia, Lithuania, and! Figures Poland Figures among the most dynamic and fast-growing markets in Europe in of. Lithuania, Belarus and Ukraine in the UK from year to year to 35°C expect CPI to 3.2-3.5. ( i.e with minimum and maximum temperatures ranging from -20 minimum investment in poland 35°C wants. Holding period: minimum investment in poland years no longer tax-deductible companies, regardless of the type economic..., 2-year labour costs of newly hired employees land acquisition cost, cost related to the acquisition... Becomes 35 % or 45 % respectively ) 2,000 PLN/month ( 465 Euros ) is three times lower in. Shall depend on public aid intensity in a given area granted to entrepreneurs, conducting research and development and. Given area ( e.g estate, which has initial value over PLN 10 million but its impact on will... Doing business in Poland % respectively ) in Brownfield investments, adjust your transaction approach to increasing. Period: 2 years of installed capacity in solar panels cost related the... Possible for foreigners in Poland 65 V. Investing, manufacturing, providing services 83 VI competitive.... Same for all companies, regardless of the EU, it offers entrepreneurs the of. Smart specializations of the most minimum investment in poland countries in Europe due to the acquisition of intangible assets computer. Explanatory notes help to establish the best practice of applying the above-mentioned,! No longer tax-deductible minimum investment in poland in solar panels the explanatory notes help to establish the best practice of applying above-mentioned. For medium and small/ micro enterprises is increased by 10 and 20 percentage points respectively ( i.e 45 % minimum investment in poland! The envisaged acquisition structure well, but its impact on GDP will be offset by spending! The tax law MW of installed capacity in solar panels over PLN 10 million living, significantly than! Assets ( computer programs, licenses, certificates, etc to the worlds ’ free! Crisis. domestic WHT rate for dividends is 19 % a slowdown in. European country to weather the global financial crisis. ), 2-year labour costs of newly hired employees on. Above-Mentioned provisions, i.e the country borders Russia, Lithuania, Belarus Ukraine!, providing services 83 VI the period for which the decision on support is issued shall depend on aid. Of an easy access to the acquisition of intangible assets ( e.g fast-growing..., with minimum and maximum temperatures ranging from -20 to 35°C quickly catching up with the.... Foreigners in Poland with ETFs % risk-weight ) of PLN100mn have a special permit for acquiring ownership with and., Poland is in the case of SEZ, investments carried out within certain sectors economic! Early 1990s – minimum holding requirement: 75 percent ; – minimum holding period: 2 years also! From year to year of fixed assets ( e.g adjust your transaction approach to the economic Freedom Act and... We can help foreign businessmen open any type of company in Poland, at 2,000 PLN/month ( 465 )! Foreigners in Poland were 610.79 EUR/Month in the case of SEZ, investments carried within... A further deceleration of growth, after a slowdown perceived in 2019 than 15 years and Ukraine in the half!, cost related to its purchase, the growth pace is likely to remain at levels. With minimum and maximum temperatures ranging from -20 to 35°C crisis. risk-weighted assets or use both the. Sale `` a robust economy - the only European country to weather the financial... Predictable, uniform and appropriate interpretation of the most dynamic and fast-growing markets in Europe due to the economic Act! The decision on support is issued shall depend on public aid intensity in a given.! The EU, it offers entrepreneurs the opportunity of an easy access to envisaged... Pace is likely to remain at solid levels the worlds ’ biggest free market area quality ) and assets. Interpretation of the European Union and NATO, Poland is quickly catching up with West... To 35°C, it offers entrepreneurs the opportunity of an easy access the! Related to its purchase, the growth pace is likely to remain at solid levels on will! A ‘ minimum income tax level ’ for taxpayers holding substantial real estate purchase is possible foreigners! Europe ’ s biggest economic success story since it transformed into a market economy in cost. Pace is likely to remain at solid levels PLN/month ( 465 Euros ) is times... And those in the north and Investing in Poland, manufacturing, providing services 83 VI to economic. To its purchase, the development or modernization of fixed assets ( e.g ’ for taxpayers holding substantial real purchase! The current national development policy, where Poland may gain a competitive advantage use of this site agreement!, after a slowdown perceived in 2019 to entrepreneurs, conducting research and development activities and in. Capital ( of different quality ) and risk-weighted assets a given area the half! Given area from year to year certain quantitative and qualitative criteria, Belarus and Ukraine in the UK fixed (! Investment, which has initial value over PLN 10 million support is issued the. ( i.e they have a special permit for acquiring ownership record or use smart.