Poland has made significant progress in developing improvements to attract foreign investments. The most important issue in 2004 was the reduction in corporate income tax to 19%. The strict banking regulations on the provisioning of loans have been relaxed and have therefore helped reduce lending costs domestically, resulting in an improvement in the aggregate investment performance. Improvements in the bankruptcy laws and in the administration of real estate registers should help improve the capability of banks collecting on collateral and their willingness to lend.

Key benefits in investing in Poland

There are several key benefits in investing in Poland including:

• Skilled labor force
  Skilled labor is generally concentrated in central and northern Poland, specifically in regions of Warsaw, Gdansk, Silesia and Poznan. Most white-collar positions now require English-language skills.
• Central Location
  Poland is conveniently located in the center of Europe.
• Assess to EU markets
  With its recent membership to the EU, Poland has made many positive changes. The EU membership allows total free movement of capital, goods, people and services within the 25 EU member states. Poland is now becoming a major part of the European and Global business environment.
• Water Transport
  The ports of Szczecin-Swinoujscie and Gdynia have seized new market opportunities, catering, for example, to tinker imports of oil from the Middle East. In 2003 Poland’s two largest ports, Gdansk and Szczecin-Swinoujscie, handled 21.6 tons of cargo and 17.7 tons of cargo, respectively. Investment Incentives
  The ports of Szczecin-Swinoujscie and Gdynia have seized new market opportunities, catering, for example, to tinker imports of oil from the Middle East. In 2003 Poland’s two largest ports, Gdansk and Szczecin-Swinoujscie, handled 21.6 tons of cargo and 17.7 tons of cargo, respectively.
  • Eligible regions and level of aid
    Investment incentives are available for investments located anywhere in Poland and are eligible to receive public aid. Investors can apply for various forms of regional aid related to new investments, employment grants, real estate tax exemption or employee training grants. Income tax incentives are only available for projects located in Special Economic Zones.
  • Cash Grants for investment and employment
    Application for investment and employment grants can be filed by investors twice a year, in January and June, to the Minister of Economy and Labor. Within a single application, an investor can apply for two forms of funding:
    • New investment
    • New employment
    The investment funding amount depends on investment location, investment value and the size of the enterprise. A league enterprise may obtain up to 25% of eligible expenditure.