Although Poland may not be part of the top low tax jurisdictions in Europe, such as Belize, it does provide several important advantages to foreign investors. Among these, we can mention a resilient economy, a large internal market and lower costs for opening and running a business compared to other western European countries.
A solid economy
Poland has a solid economic foundation and it was the only European country to record a GDP growth during the global economic crisis. Having avoided recession, the country continued to progress and some of the factors that have contributed to the recent economic performance can include private consumption, labor market performance, significant export values as well as the competitiveness shown by Polish companies. Also, another attractive European destination for starting businesses is Romania, a country which offers many opportunities to foreign investors.
Attractive investment sectors
Poland is a popular investment destination in Europe and companies find that there are many business opportunities to explore here. Among the top sectors, we can mention food processing, automotive and aerospace, electronics and business services. Poland is also an increasingly popular destination for IT companies from Northern and Western Europe. The outsourcing sector in Poland has also recorded constant growth. The business services sector is one of the top employers in the country and companies in this field are based mainly in large metropolitan areas. In fact, many investors who start a company in Poland choose to incorporate in Warsaw, Wroclaw or Krakow.
An important advantage for investors who start a business in Poland is that they have access to a variety of tax grants and incentives. The maximum level of investment aid depends on the size of the company and the region in which it will be based. Some of the types of costs incurred by companies that can be eligible for aid are those referring to purchasing land, buildings or machinery, technology transfer costs, and leasing costs, in some cases. Moreover the administrative procedures related to opening a company in Poland, such as the company formation procedure or the trademark registration, aren't very complicated.
Low unit labor costs, easy access to the EU market combined with a large internal market as well as the fact that Polish employees are talented and highly skilled are all advantages for investors who start a business, in addition to the stability and incentives that are available.
These are just some of the reasons why foreign investors choose to start a business in Poland. We encourage interested entrepreneurs to explore all that this country has to offer in terms of business opportunities.
Author: Vlad Cuc - Director of Bridgewest and specialist in company formation matters. Bridgewest is a company specialized in offering incorporation services throughout Europe and Asia.