A significant advantage of doing business in the Republic of Poland is the opportunity to take advantage of certain tax benefits provided in connection with investments within a special economic zone.
In general, a special economic zone in Poland (hereinafter referred to as a SEZ) is a delineated, isolated territory in which the production or sale of goods (economic activity) by Polish and foreign entrepreneurs is carried out on preferential terms.
The main purpose of the operation of a SEZ in Poland is to activate economic life in certain regions of the country characterized by a high level of unemployment.
The main advantages of organizing a business in a SEZ are:
- exemption of the investor from corporate income tax (CIT) received from economic activity in the SEZ territory in the amount of 15-70% of the investment made;
- availability of land and/or commercial premises with all the infrastructure necessary for organizing a business.
At the same time, the Polish legislator also establishes certain requirements for obtaining benefits within the framework of the SEZ, including:
- the investment volume must be at least 100,000 euros, with the investor’s share of equity being at least 25%;
- investment funds must be utilized within five or more years from the date of completion of the investment project in the SEZ (three years for small and medium-sized enterprises);
- jobs at newly created business facilities must be maintained and preserved for at least five years from the date of hiring employees (three years for small and medium-sized enterprises).
As of today, there are 14 SEZs in Poland, which are located in almost all voivodeships of the country, namely:
- Kamiennagoros Special Economic Zone
- Katowicka Special Economic Zone
- Kostrzyn-Slubice Special Economic Zone
- Krakow Special Economic Zone
- Legnica Special Economic Zone
- Łódź Special Economic Zone
- EURO-PARK MIELEC Special Economic Zone
- Pomeranian Special Economic Zone
- Slupsk Special Economic Zone
- Starachowice Special Economic Zone
- Suwałki Special Economic Zone
- Tarnobrzeg Special Economic Zone “EURO-PARK WISLOSAN” Special Economic Zone
- Wa lbrzyska Special Economic Zone
- Warmi n sko-Mazurska Special Economic Zone.
According to the legislation of the Republic of Poland, SEZs operate as separate state-owned enterprises that organize and control the process of creating production facilities within the territory allocated for this purpose.
Each SEZ develops and publishes its commercial offers for a potential investor, depending on the specifics of the territory in which it operates and the existing development plan.
For the most part, these offers consist of preparing for the sale to the investor of land plots and/or other commercial real estate objects for the purpose of organizing a business there.
If a potential investor is ready to invest in a real estate object on the territory of the SEZ and seeks to take advantage of the tax benefits provided for in this regard, he should first obtain the appropriate permission from the Ministry of Economy of Poland.
To do this, it is necessary to prepare and submit to the ministry a package of documents with a detailed description of the features of the planned economic activity in the SEZ and the further development of his business in this territory.
Thus, if you are interested in the possibilities of a SEZ in Poland, the most optimal algorithm of actions in our opinion is:
- establishing a company in Polish jurisdiction;
- choosing a location and selecting the optimal SEZ for organizing a business;
- selection of a specific object for investment within the SEZ (land plot/premises);
- preparation and submission to the Ministry of Economy of Poland of documents for obtaining a permit for investment within the SEZ;
- obtaining the above-mentioned permit and actually making investments;
- setting up activities in accordance with the documents previously submitted to the ministry and the permit obtained.
The process of selecting the optimal SEZ in Poland for a given investor is complex and multifaceted, therefore, in this case, it is advisable to use the help of professional consultants.
