Poland

Poland — the heart of Europe

Poland has an investment friendly climate — industry is developing, infrastructure is improving. The country has exceptionally educated IT engineers and specialists in many fields

We want to engage in the development of the Polish economy and employ Polish talents, said Bill Gates, president of Microsoft Corporation during his visit to Poland in February 2006 while announcing the company’s plans to locate a software engineering centre in Warsaw. “IT is the driving force of economic progress in Central Eastern Europe and Microsoft plans long-term investments in this region.”

Poland offers one of the youngest populations and one of the best-educated societies in Europe. It has highly qualified specialists with good knowledge of foreign languages, IT experts who are much sought after abroad and low labour costs. Fulfillment of all these criteria ensured that Poland became a shared services centre for Europe. International corporations see Poland as an excellent location for transferring non-production functions of a company, such as the accounting department or call centres.

Poland is becoming the European centre of modern Business Offshoring Centre services. International companies entrust certain business support operations to foreign companies that offer lower running costs. Since 2005 investors can locate BPO resources in Special Economic Zones, which offer, for example, tax exemptions. In the near future, alongside accountancy and financial services (back-office), the call centres (front-office) are expected to develop dynamically. Poland has the opportunity to be at the forefront of the foreign direct investment inflow to the BPO sector. The low labour costs and high quality of services are Poland’s big advantages.

“Poland was chosen as the location for the new investment due to high potential of Polish engineers. Another argument is the strength and stability of Polish economy, the existence of good education infrastructure and the availability of financial incentives to support high-tech investments.” said Dariusz Fabiszewski, Country General Manager, IBM Poland, who will open a new Software Laboratory in Kraków (Source: PAIiIZ, September 2005). The year 2004 saw the largest inflow of foreign capital to Poland since 2000.

The value of FDI inflow to Poland was estimated at $6.2 billion, which ranks the country second position among 19 CEE states. Poland is a large country of opportunities, especially in the light of significant and constant development of sectors. Sector structure of foreign direct investments in 2004 confirms that the majority of investments are still flowing into the manufacturing sectors of the Polish economy. Special stress should be put on the automotive sector. Polish factories are characterised by the highest quality and efficiency combined with very low costs.

Poland’s location in the heart of Europe creates the possibility of cooperating with other automotive plants in neighbouring countries. Entrepreneurs from the chemical and pharmaceutical sectors are continuing their investments in Poland. Capital is also pouring into metals and metal products, as well as machinery and apparatus sectors (mainly domestic appliances). In terms of accumulated values of foreign direct investments with regard to the sector structure, manufacturing and financial intermediation sectors are still dominating. Other sectors with significant importance to foreign investors include trade and repairs and transport.

“The stability given by the EU membership and the relative closeness to the Netherlands are some of the major advantages for Dutch companies to set up their production here. Also being the gateway to the east, Poland is a logical choice from a logistic point of view.”, said Daniel Heinst, Chief Representative of the Netherlands Business Support Office Kraków (Source: PAIiIZ, December 2005).

After 16 years of courageous economic and political reforms initiated in 1989, Poland has strengthened its position as one of the fastest-growing countries of Central and Eastern Europe. Poland is a country of extensive opportunity, with considerable economic potential. Its features include a stable democracy, an established market economy, close and good relationships with other countries from the region and an active involvement in the WTO and NATO. Since 1 May 2004 Poland has been a member of the European Union. Poland will play its part in the development of the new, expanded European Union and will help create new opportunities for companies that choose to invest in Poland. Poland is an unquestionable economic and political leader in Central and Eastern Europe. Foreign investors choose Poland for its low inflation, stable currency, rapidly growing sector of small and medium-sized enterprises, as well as for its broad and diversified supplier base. It is a trustworthy and reliable partner for international business. All of these factors contribute to a positive, investor-friendly climate in Poland, a country located at the heart of Europe, with a population of almost 40 million, famous for its hospitality and entrepreneurship. Poland is a market with the significant potential of a young, educated and highly qualified labour force.

The Polish Information and Foreign Investment Agency (PAIiIZ) is responsible for attracting foreign investors into Poland, as well as assisting them in the whole investment process. PAIiIZ offers investors: quick access to complex information regarding economic-legal investment environment, help in finding suitable partners and suppliers, and attractive investment locations, and advice during each phase of the investment process. To ensure this high level of FDI inflow, Poland offers investors various forms of state aid, such as financial grants for new investment (covering up to 25% of investment outlays), financial grants for the creation of new jobs.

CIT exemption in Special Economic Zones and real estate tax exemption, as well as low corporate income tax (19%). Its location at the very heart of the continent and with economic growth at 54% one of the highest in the region (2004) makes Poland an exciting place for investors from around the world.

 

Contact details:
Bagatela Street 12 , 00-585 Warsaw - Tel: (+48 22) 334 98 00 - Fax: (+48 22) 334 99 99 E-mail: post@paiz.gov.pl - Website: www.paiz.gov.pl

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