Poland has a growing economy and a business-friendly environment, making it an attractive destination for foreign investors looking to form a company. This article will explore the advantages of forming a company in Poland for foreign investors, including access to a large market, a well-educated workforce, and a favorable business climate.
Table of Contents
- Access to a large market
- Well-educated workforce
- Favorable business climate
- EU membership
- Tax friendly location
- The advantages of forming a company in Poland for foreign investors. Conclusion
Access to a large market
Poland has a population of over 38 million people, making it the sixth-most populous country in Europe. This large domestic market provides foreign investors with the opportunity to tap into a wide range of consumer and business markets.
Poland has a well-educated workforce, with a high proportion of its population holding a university degree. This provides foreign investors with access to a skilled and productive workforce that can help drive business growth.
Favorable business climate
Poland has a business-friendly environment, with a relatively low corporate tax rate and a well-developed infrastructure. Additionally, the government has implemented a number of initiatives to support foreign investment and the growth of small and medium-sized enterprises.
Poland is still a relatively a cost-effective location for business operations, with lower labor costs and other operational expenses compared to many other European countries. This can help foreign investors to achieve significant savings and increase profitability.
Poland is an EU member state, which gives foreign investors access to the EU’s single market and all its benefits, such as the free movement of goods, capital, services, and people. This can provide a significant boost to business operations and growth.
Tax friendly location
In recent years Poland has become kind of a tax haven within the EU. Not only you can take advantage of R&D and IP BOX tax reliefs, but most importantly you can pay as little as 9% of CIT, or not pay CIT at all using our famous “Estonian CIT”.
IP Box in Poland
A tax relief for companies dealing with intellectual property. The income tax rate on the income related to IP decreases to 5%.
R&D tax relief in Poland
A tax relief for companies operating in research and development sector (construction, production, IT etc.). It’s idea is about allowing the taxpayer to deduct R&D costs from the tax basis multiple times. From 2022 it can be used jontly with IP BOX!
“Estonian” corporate income tax in Poland
“Estonian CIT” is a game changing tax solution for many businesses. Simply you do not pay any corporate income tax on the company’s profit unless you pay out a dividend. And even if you distribute the profit you get a preferential effective tax rate of 20% (small taxpayers) or 25% (other companies) for corporate and personal income taxes combined. What is not to love about this regulation?
The advantages of forming a company in Poland for foreign investors. Conclusion
Poland offers many advantages for foreign investors looking to form a company, including access to a large market or a well-educated workforce. As well as a favorable business climate, cost-effectiveness, mambership in the EU and, most importantly – tax friendliness. By understanding these advantages, foreign investors can make informed decisions and develop strategies to succeed in the Polish market. Of course we always recommend to conduct thorough market research and take professional advice before starting a business in Poland.
If this article was interesting for you and you want to know more on the topic it concerned we encourage you to contact us. Specialists from our law firm in Poland, Warsaw, will be happy to help. If you are interested in company registration in Poland visit our dedicated landing page.