Why Poland?

A market with great potential – but not one for ad hoc decisions

For years, Poland has been attracting foreign investors as a location for manufacturing, services, sales, logistics, IT, and research and development activities. For companies from Germany, Austria, Switzerland, and other EU member states, Poland is geographically close, well integrated into the European economic and logistics space, and at the same time large enough that entering the market is not merely a test run. It can be a genuine strategic step in the company’s expansion.
This is no coincidence. Poland offers several locational advantages that often tip the scales in favor of an investment decision in practice.

Market Size and Regional Significance

First: market size. Poland is one of the largest economies in the European Union and a key market in Central and Eastern Europe. For entrepreneurs, this means not only access to Polish customers but also the opportunity to serve a larger region – from Germany and the Czech Republic through the Baltic states to Ukraine and other eastern markets.

Strategic Location and Access to the EU Single Market

Second: location. Poland is situated between Western and Eastern Europe and is also part of the EU single market. For manufacturing, logistics, and distribution companies, this has very concrete implications: delivery times, access to suppliers, proximity to key customers, and the opportunity to establish operational structures within the stable legal framework of the EU.

Skilled Workforce and Expertise

Third: the availability of a skilled workforce. Investors value well-trained employees, strong technical, engineering, and IT expertise, as well as the extensive experience of Polish professionals in collaborating with international companies and projects. In practice, investors regularly cite three factors as decisive arguments in favor of Poland: a skilled workforce, proximity to Western European sales markets, and access to the EU single market.

Infrastructure and Operational Base

Fourth: infrastructure. In recent years, Poland has significantly expanded its transportation infrastructure, warehousing and industrial capacity, and office space. For investors, this is relevant not only when selecting a plot of land or an office. It influences the entire operational model – from transportation costs and workforce availability to the scalability of operations.

Tax and Investment Incentives

Fifth: the system of tax incentives. Poland offers instruments that (when properly planned) can significantly reduce the effective tax burden on an investment or innovative activity. Among the most important are the Polish Investment Zone, the R&D tax credit, the IP Box, the tax relief for robotization, prototype funding, expansion funding, and the so-called Estonian CIT model.

However, these instruments should not be selected based solely on their names. Each incentive has its own requirements and restrictions. Sometimes the shareholder structure determines whether an incentive is even available – for example, the Estonian CIT model is generally not available to a Polish subsidiary whose shareholder is a foreign corporation. In other cases, the size of the investment is decisive – a project that is too small may fail to meet the thresholds required for the Polish Investment Zone. In the Polish Investment Zone, qualitative criteria also play a role: type of activity, job creation, collaboration with academia, the investment’s impact on the region, or aspects of sustainable development.

Tax Incentives Should Be Considered from the Outset

Therefore, tax incentive instruments should be discussed right from the start, not only after the company has been registered or the location selected. Legal form, ownership structure, investment volume, financing model, business profile, and location can all determine whether a specific incentive is available and whether it can be utilized in a legally secure manner.

Poland Is an Attractive but Challenging Market

This does not mean, however, that entering the Polish market can be reduced to merely establishing a company.
Poland is an attractive but challenging market. Foreign entrepreneurs quickly encounter areas that, without local support, can delay market entry or give rise to legal and tax risks. Typical issues include: the pace and frequency of tax law changes, procedural formalism, the language of documents, extensive registration requirements, banking procedures, reporting obligations regarding beneficial owners (transparency register), VAT, transfer pricing, employment, and cross-border settlements.

n practice, the problem rarely lies in something being unfeasible. More often, it stems from a single decision having multiple consequences that are not immediately apparent.

Choosing a Location Means More Than Just an Address

An example: choosing a location is not merely a matter of land, a production facility, and road access. It is also a matter of the intensity of regional aid, the availability of a funding decision, the labor market, labor costs, the business profile, and the ability to legally distinguish tax-exempt income from other revenue. According to the regional aid map, the differences between regions are significant: in some voivodeships, the maximum aid intensity for large companies is 50%, while in parts of Warsaw and the surrounding area, no regional aid is currently available. In between lie regions with an aid intensity of 25%, 30%, or 40%; in the cities of Poznań and Wrocław, it stands at 15%.

There are further exceptions: no aid is provided for the capital city of Warsaw or several adjacent counties, including Legionowo, Mińsk, Nowy Dwór, Otwock, Piaseczno, Pruszków, Warszawa Zachodnia, and Wołomin. Other counties in the Warsaw area, such as Grodzisk Mazowiecki or Żyrardów, are, however, eligible for regional investment aid.
From a tax perspective, the choice between neighboring locations can have significant economic implications.

Legal Form and Ownership Structure Are Decisive

The situation is similar with regard to legal form and ownership structure. A Polish limited liability company (spółka z ograniczoną odpowiedzialnością) is often the obvious choice. However, it is not enough to simply establish and register a company. It is necessary to examine who the shareholders will be, how investments will be financed, whether payments to affiliated companies are planned, and whether dividends, license fees, management fees, or debt financing will play a role in the future.

This analysis is not only relevant for ongoing tax compliance. It can also influence the availability of tax incentives. The tax assessment differs fundamentally depending on whether the shareholders are individuals, whether the entity is a Polish subsidiary of a German GmbH, or whether a joint venture structure with multiple investors is in place. In one scenario, the Estonian CIT model may be worth considering; in another, it must be ruled out from the outset, so that the focus is instead on the Polish Investment Zone, the R&D tax credit, or the IP Box. Such decisions should be made prior to registration, not only after the first fiscal year.

A Good Start Is a Matter of the Right Sequence

A well-prepared start in Poland therefore involves more than just registering a company. What matters is putting the individual decisions in the right order.

First, the business model must be understood. Then the appropriate legal form must be chosen. This is followed by registration, VAT, a bank account, employment, accounting, and taxes. Only on this basis can investment and tax incentives be meaningfully discussed, not as an afterthought, but as an integral part of the plan.

The Role of a Local Advisor

This is precisely where a local advisor is needed – one who does not focus solely on individual formalities or isolated regulations. When entering the Polish market, legal, tax, accounting, and business perspectives must be integrated. Otherwise, it is easy to make a decision that seems straightforward at first but proves costly after a few months.

I guide investors through this process in a structured manner and with a clear focus: explaining the available options, highlighting consequences, clearly identifying risks, and proposing a solution that fits the specific business model. I communicate clearly and accessibly – without unnecessary legal jargon, but with the necessary awareness of where legal and tax precision is crucial.

Poland Is a Good Investment Location — Provided There Is a Plan

Poland can be an excellent location for investment. However, one prerequisite is essential: market entry should be based on a clear plan, not just the decision to register a company. That plan should encompass not only the formal commencement of business operations, but also the ownership structure, investment volume, location, employment model, and potential tax incentives. Only then does it become clear which solutions are genuinely available and which only look good on paper.