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When looking for country to invest or move part of the business to Europe it is worth to hang around Poland. The country went long way from Communist country under Soviet Russia influence to independent state. The journey was long and difficult but Poland succeed in it and not is booming economy. The most important thing to notice is that there is still room for new and innovative businesses.

Basics

Poland has got population of 38 433 600 people. It is bordered by Germany, Czech Republic, Slovakia, Ukraine, Belarus, Lithuania and Kaliningrad (part of Russia). The location of Poland makes it great distribution hub for goods. Poland is connected to Baltic Sea. This allows road freight, sea freight and air freight for your products, in other words global distribution.

Poland is a member of European Union, however it does not have Euro. Currency used in Poland is Polish Zloty (PLN).

(economics as for 2021 – estimated)

GDP – 1,369 trillion USD

GDP Nominal – 635 billion USD

GDP per capita – 33 413 USD

GDP per capita Nominal – 16 739 USD

GDP growth – 4,6%

Unemployment - 6,4% (March 2021)

As a EU member, Poland is part of Schengen Area.

Polish legal system is based on Civil Law.

Investing in Poland

Poland is good place to invest due to its location and access to sea. The number of people living in Poland allows to look for talented workers. Young people are highly educated and skilled professionals who would be good assets in your Polish operations. Polish work market draws workers from Ukraine and Belarus who are not only manual labours but also highly skilled professionals in IT, Sales, Marketing etc.

In regards to Free Economic Zones and Incentives, those things were mentioned in earlier post. Making it short, since July 2018 Polish Government made whole Poland a Free Economic Zone. Since that there is a possibility to invest in whatever Polish region and be treated as you would invest in FEZ. Although details on incentives are still being worked on. Nonetheless this makes moving into Poland more desirable as you are not bound to certain territory.

In regards to taxation in my opinion Poland is a interesting country. CIT is 19%, however since 2021 there is 9% tax for companies who did not exceed 2 mln EUR it total revenue (this includes VAT). This means that small companies will pay 9% tax and after they go beyond 2 mln turnover they would be paying 19%. Personal Income Tax is 17% up to 85 528 PLN and 32% for earnings above 85 528 PLN. The 32% you pay on earnings above that level. You can also choose flat tax rate which is 19%.

Value-Added-Tax basic rate is 23%, the reduced rates are 8%, 5% and 0%.

Poland is good place to think about service business would target normal consumers as the younger generation is making more money and they would want to spend it.

Key Sectors

Poland welcomes all sectors of business that would want to start they operation in the country. However like everywhere the are key sectors that are desired by authorities and where getting incentives would be much easier.

a) Aerospace

b) Automotive

c) Business Shared Services

d) Electronics

e) Food Processing

f) White Goods

Personally I would also add Block Chain technologies, Fin-Tech, Game Development, Tourism, Internet of Things and Clean Energy Transport. Those sectors were mentioned by present government as most interesting to pursue. Reason for that is the idea of making Poland a Silicon Valley of Eastern and Central Europe.

Another good idea to pursue in Poland is food processing. This you could say simplistic business (in regards to idea) is visible in Poland due to large amount of fresh fruit and vegetables production in Poland. There is possibility to precess those products and then export them with better profits.

Conclusion

As presented Poland in my opinion in interesting place to start of move part of your business. Its location that gives global access and membership to EU enables your company to make global presence with your products. If you would add lower costs of doing business and skilled workforce the decision is even more tempting.

Poland is solid in business relations. The opportunities that lay in this country are vast and ready to be harvested.

You think you would like to invest in Poland? Or maybe you want more information or discuss possibilities or ideas. SIN-TRADE Ltd works in highly confidential mode, what you tell us does not leave the company. We can assist you with moving your business, starting a new company or opening manufacturing facility. Our company can help you with accounting of your new Polish venture. We also offer Management Consulting, International Business Development Consulting and Lobbying services in EU Parliament and Polish Parliament and Local Authorities. Do not hesitate to contact us.

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