Top 5 Reasons to Invest in Poland?

A classy clickbait title? Will this list help you make up your mind and decide whether you should start your company in Poland? We say you should just do it and here's our very subjective list of five reasons why. It may work for you, it may work not, it does for most of our clients. In the end it's always down to money, so check out our free Polish company calculator below the article.

Invest in Poland

1. Low 9% Corporate Income Tax (CIT) for Small Companies

Poland is not necessarily a tax haven, yet it offers quite a few incentives for new companies. With these Poland can easily compete tax-wise with other popular EU countries such as Ireland. You won't benefit much if you're a large international corporation, but being a small and medium-size business in Poland can really pay off.

Corporate Income Tax levels in Europe and Poland
CIT levels in Europe in 2021, source: & PWC

The general income tax for companies in Poland is at a flat 19% (2021), but if your company's yearly turnover stays below an equivalent of 2 million euros (roughly around 9,1M Polish zloty) you can benefit from a low flat 9% corporate income tax. A great boost for start-ups. Even better for production and outsourcing subsidiaries, the objective of which is to provide products and services within their capital group at a price slightly above the cost.

On top of low tax for small companies, your business can also benefit from special economic zones in Poland which are scattered across the country and business activity in one of them is subject to additional tax exemptions and grants.

2. Well Educated Population

A company in Poland can also benefit from its well-educated workforce. Polish youth made it to the 10th position globally in the most recent PISA assessment (2018) and ranked 10th in mathematics (3rd among European countries following Estonia and the Netherlands), 12th in science (preceded only by Estonia and Finland in Europe) and 10th in reading (after Estonia, Finland & Ireland).

In terms of higher education, Poland is a good place to set up a company. In 2012, a quarter of the Polish population had a university degree (Eurostat 2012). Still, the trend is rising, as in 2019, over 45% of people aged 30-34 years had a higher degree compared to 14.4% back in 2002.

The majority of students in Poland are choosing subjects relevant to the business. Out of 1.23 million students in 2018, 22% studied business, law or administration, 17.2% majored in IT and other technical faculties related to the industry and construction sector. This is highly beneficial to technology companies outsourcing their core business to Poland and goes well with the next 3 reasons to invest in Poland.

3. High Proficiency in English

According to EF English Proficiency Index Poland ranked 16th (14th in Europe) in their Global Ranking of Countries. The country has been classified as "high proficiency". Europe is the world leader in English proficiency (excluding native English speaking countries), so Poland's high ranking comes as no surprise. It's worth underlining, though, that Poland ranked 2nd in Central Europe, right after Hungary, which is a satisfying result as Central and Eastern Europe has generally been lagging behind Western Europe in English proficiency.

English speaking employees are necessary for doing business in Poland, both in services and manufacturing, unless the owners and the management speak Polish themselv