Why is Poland Attractive to Foreign Investors?: 4 Reasons Explained

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    poland attractive to foreign investors

    Introduction

    Since the beginning of the economic transformation, Poland has experienced a variety of modifications. Being a member of the European Union enhanced the Polish economy and prepared it for further appealing for foreign investment. 

    Yet in 2004, Poland prevailed to be one of the main objectives for FDI within East as well as Central Europe Nation. Additionally, during the economic downturn in the world, Poland was an ideal place to invest foreign capital. All these factors make registering a business in Poland a great choice for foreign investors.

    In these articles, we will be going to understand the various reasons why Poland is attractive to foreign investors. As the results show that the position that Poland has taken on Poland relative to foreign investments has drastically changed.

    Why is Poland attractive to foreign investors?

    Down below we’ve listed the numerous reasons why is Poland attractive to foreign investors, let’s see what they are. 

    1. Extended Market

    As the 6th most populous country within the European Union, Poland provides investors with the opportunity to invest in a 38 million consumer market which is among the largest in Europe. It’s also located in the middle of Europe which allows for the facilitation of the export and import of goods but also reduces the cost of transportation of the merchandise. 

    Because of its location on the continent, investors who invest in Poland can reach over 500 million customers. Poland’s main trading partners include Germany, France, the United Kingdom, Italy, Hungary, Ukraine, Spain, Russia, and China.

    2. Polish Special Economic Zones  ( PSEZ )

    The Polish government realized that the new investments would be a major factor in the development of the country, resulting in the reduction of unemployment as well as an increase in the quality of the Polish economy, & that’s why they founded Polish Special Economic Zones (PSEZ). 

    They have 14 designated zones which give investors the possibility to run their businesses on favorable terms, as well as the guarantee of tax advantages. (PSEZ) provide attractive tax exemptions along with employment-related incentives, as well as well-planned investment opportunities. 

    Additionally, the tax rate for corporations in Poland is 19%, which is among the lowest rates in Europe. In certain instances when companies meet certain criteria, it’s possible to obtain financial aid from the Polish government and tax exemptions for residents.

    3. Workforce

    The workforce in Poland has been estimated at 17 million and over half of them work in the services sector. Poland offers investors a high-quality and educated workforce, particularly engineers, economists, researchers, IT experts, and researchers. Poland is home to more than 500 universities.

    4. Business Sector Growth

    The most significant growth in economic activity is evident within the R&D, automotive chemical, and electronic sectors. Furthermore, Polish tourism is a very well-developed industry because the country can attract a large number of visitors due to its scenic beauty as well as its rich history and cultural heritage.

    According to a recent study, Poland may be the center of manufacturing in Europe due to the:

    • The cost of labor is anywhere from 4 to 10 times less expensive than in other countries, and there is very little chance that this cost difference will decrease over the next couple of years.
    • The manufacturing process in Poland is less expensive by around 30%.
    • The quality and durability of Polish products are much better than those made by other nations, which makes them more efficient. This is very authentic for such regions as electric home appliances and metal products, automotive furniture, and automotive.

    Conclusion 

    As the results show that the position in Poland relative to foreign investments has drastically changed. Due to this Poland is regarded as the eighth European state concerning foreign investment. OnDemand International experts will be pleased to offer assistance and advice for foreign investors who are interested in setting up a business within Poland. Get in touch with our experts today.

    FAQ’s

    Poland’s diverse economy decreases its risk of external shocks, but it heavily depends on its EU for its export markets. 

    Poland has been strategically situated in the middle of Europe This makes it the ideal location to invest in businesses looking to export their goods both to the East as well as to the West.

    Tax-free, effective protection of the rights of investors and the simple process of establishing a business and a stable macroeconomic climate, and the ability to access skilled labour for the workforce all draw investors.

    Foreigners can indeed manage an enterprise in Poland but not all can do it. Foreigners who want to become entrepreneurs in Poland must be a member or a member of the European Union or a country that is part of EFTA or any other international agreements with the EU.

    It is the minimum share capital needed for an LLC is 5 pounds while for a joint stock company, this capital is higher at 100,000 PLN.