Incentives for inward investors
10.03.2010
Poland offers investors ready access to a market of over 450 million people in the European Union. The country’s central location, its young and well-educated society, competitive (inexpensive) labour costs and investment incentives make Poland one of the prime locations in Europe.
State support
The incentives available to inward investors in Poland consist of tax incentives and financial assistance. Bearing in mind that Poland is a member of the EU, incentives must be in line with the EU state-aid regulations. In general, the various combinations of state aid on the territory of Poland cannot exceed 50% of the investment value for large companies.
Tax incentives
Tax incentives are the most frequently used type of incentive in Poland and they fall into two groups:
- corporate income tax exemption
- local tax exemption
Financial assistance
The Polish government offers cash grants to strategic investors. Poland is particularly interested in attracting Shared Service Centre, Information Technology and Research & Development projects, and offers substantial cash incentives for this purpose. Allocation for this activity is EUR 1.0bn, of which EUR 240m is to be distributed in 2009:
- if an enterprise sets up a centre of any kind and employs 100 or more people, it is possible to receive a cash grant of up to 30% of two years’ labour costs,
- if an enterprise plans to invest more than EUR 40m (USD 50m) in innovative production and to employ more than 200 people, it is possible to receive a 25% return on the investment ‑ paid in cash.
the article from Doing Business - publication prepared by: PriceWaterhouseCoopers in the cooperation with MARR