Why Set Up Your Business in Poland?
Poland is located in central Europe, neighbouring Belarus, Czech Republic, Germany, Lithuania, Russia, Slovakia, and Ukraine. Spanning over 304,255 square kilometres of land and 8,430 square kilometres of water, Poland is the 70th largest nation in the world with a population of nearly 40 million. The country’s strategic location in the centre of Europe positions it as an ideal investment hotspot for enterprises targeting both Western and Eastern parts of the continent.
An Overview of the Polish Economy
The Polish economy has seen a relatively good performance against the backdrop of the region of Central and Eastern Europe as well as the entire European Union. Being the sixth-largest economy in the European Union and the largest among the former Eastern Bloc members of the European Union, Poland has pursued a policy of economic liberalization since 1990. Poland joined the EU in 2004 and the country has benefited from increased and substantial investment from the Union. The Polish economy has seen exponential growth in GDP per capita at purchasing power parity growing on average by 6% p.a. over the last 20 years. One thing worth mentioning is that the Polish economy is the only one to have avoided recession during the global downturn of 2009, thus positioning itself as one of the most reliable in Central and Eastern Europe (CEE).
Why Invest in Poland?
Poland is no doubt one of the most attractive destinations for foreign investments. The advantageous economic, political stability, educated workforce as well as the large domestic market are among the important factors that attract foreign investors.
Here is a snapshot of why we should invest and do business in Poland.
- Geo-strategic Location
The location of Poland at the crossroads between Eastern and Western Europe has its geo-strategic significance in the region’s economic growth. Connecting the consumers and markets of the West and East, Poland offers foreign investors trading opportunities with the neighbouring countries. The country’s strategic location also provides easy access to other European countries and creates a market involving 500 million consumers.
- Tax Incentives and Government Support
The Polish government welcomes foreign investments and it has introduced business-friendly reforms to reduce taxes (the corporate tax rate in Poland stands at 19%). Poland offers various types of investment incentives that include a wide range of grants and can be combined with tax exemptions and loans. As a member of the EU, Poland also benefits from a free flow of goods and services. One of the incentives that worth mentioning is that the Polish government offers attractive incentives to investors who invest in areas of unemployment. The Polish government provides investors to investing in areas where there are high levels of unemployment are 50%. On top of that, the Polish government also provides incentives to investors in its R&D sector.
- Access to Large Domestic Market
Another factor that appeals to foreign investors is the ease of access to the large domestic market. The market size of Poland that is equivalent to the 38-million consumer market is one of the biggest in entire Europe. The large domestic market is, in fact, the greatest advantage of Poland.
- Special Economic Zones
The Polish Special Economic Zones are created to combat unemployment as well as to increase the competitiveness of the Polish economy. The 14 special zones in Poland offer investors the opportunity of running their business of preferential terms as well as the assurance of tax benefits. The attractive tax exemptions, employment incentives, and well-prepared investment lots are among the benefits in the Polish Special Economic Zones.
In fact, Poland stands out as one of the most successful and quickly growing economies in Central Europe. Its transformation to a democratic, market-oriented country raised Poland’s profile on the international stage. Thanks to the flow of foreign capital into its economy, the Polish economy offers a promising investment climate to foreign investors. If you are planning to tap into the European markets while expanding your business globally, Poland could be one of the popular destinations on your bucket list.