Country: Poland

Region: Europe

Currency: Zloty (PLN) (zl)

Languages: Polish, German, English

Time Zone: UTC +1

Phone Code: +48

Communications: Good

Formation Cost: 5000 – 6400 USD$

Formation Time: 25 – 35 days

Maintenance cost: 1900 – 2900 USD$

Executive Summary:

Poland is located in central Europe, with Germany to the west and the Baltic Sea to the north. It covers a land area of 313,000 square kilometres and has a population of approximately 38.5m. The capital is Warsaw and the country is divided into 16 administrative provinces. Since the fall of communism in the early 1990s, Poland’s governments have pursued free market policies and have liberalized many aspects of the country’s economy. Poland joined the EU in 2004 and hopes to be able to join the eurozone, although as of mid-2013 there is no clear timetable for this. The current currency is the zloty (PLN), and at the time of writing USD1 = PLN3.26. Poland was the only EU Member States to avoid recession in 2008-09, although the country is relatively poor by European standards; GDP per capita was just under USD21,000 in 2012, well below the EU average of USD32,000. Although the economy has enjoyed relatively strong rates of growth, it has been held back by a lack of investment in infrastructure, particularly road and rail, as well as rigid labour laws and bureaucracy. Nonetheless, like other former Warsaw Pact countries, Poland welcomes foreign investment. The corporate income tax rate, at 19%, is one of the lowest in Europe. There are various tax and other incentives for business activities carried out in the 14 Special Economic Zones.

According to the International Monetary Fund, as of 2013, Poland has the 49th highest GDP per capita in the world. It is ranked as 39th on the UN’s Human Development Index (a comparative measure of life expectancy, literacy, education, standards of living, and quality of life).

Following revolutions in 1989, Poland saw the overthrow of its communist government and the installation of a democratic one. Poland joined the North Atlantic Treaty Organization (NATO) alliance in 1999 and became a member of the European Union in 2004.

The Polish economy is the largest in Eastern Europe and the 6th largest in the EU. Germany is Poland’s dominant trading partner. Polish law encourages investment from foreign entrepreneurs by offering taxation incentives in 14 Special Economic Zones.

Suitable for: Wealth Management, Banking, Insurance, Shipping, Aviation, Yachting, Trading Goods, E-commerce

Company Types: Limited liability companies, joint-stock companies, branches, sole proprietors, general partnerships and limited partnerships

Capital primary business districts: Warsaw

Good Relationships: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom

Bad Relationships: Burma, Egypt, Iran, Korea (Democratic People’s Republic of), Libya, Somalia, Sudan

Tax Burden – Business: Light

Tax Burden – Individual: Light

Headline tax rates: CIT 19%, PIT 18/32%, VAT 23%

Treaty Jurisdictions: Albania, Armenia, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jersey, Jordan, Kazakhstan, Korea, Republic of, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldova, Mongolia, Montenegro, Morocco, Netherlands, New Zealand, Nigeria, Norway, Pakistan, Philippines, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States, Uzbekistan, Vietnam, Zambia, Zimbabwe

TIEA Jurisdictions: Andorra, Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Dominica, Gibraltar, Grenada, Guernsey, Isle of Man, Jersey, Liberia, San Marino