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POLISH INFORMATION
AND FOREIGN INVESTMENT AGENCY
Investment incentives in Poland
Sławomir Majman
President of the Board
August 2009
Poland - Key Facts
Area:
312 700 sq km – 6th in European Union
Population:
38,12 million –
Currency:
Polish Zloty (1 EUR ~ 4.7 PLN)
GDP total:
USD 567.4 billion (2008)
6th in European Union
GDP per capita: 17,560 USD (PPP, 2008)
GDP growth:
6.7% (2007), 4.8% (2008), 2.0% (2009, EC forecast)
Membership:
EU, NATO, OECD, WTO, Schengen Zone
Competitive Advantages
Location & economic fundamentals
 strategic location in continental Europe
 part of trans-european transportation
corridor
 GDP growth twice the EU average
 38 million of consumers
 9.9% growth of retail market in 2008
1000 km radius
250 mn people
Labor force
 young, well-educated work force
 ca 1.9 million of university students
 455 universities & high education schools
Investment incentives
14 Special Economic Zones
 over EUR 67 bn from EU
2000 km radius
550 mn people
Planed modernisation of roads and railroads network
Highways Speedways
Existing
Under construction
2007 – 2013
2014 – 2020
Concessions or PPP
2007 – 2013 extra projects
Source: GDDKiA, MI
Railroads
Till 2006
2007-2013
2014 – 2020
New constructions
After 2020
Air Transport
25
Passengers served
by Polish airports (in millions)
19,1
20
22,3
15,4
15
10
20,3
11,5
7,07
7,55
5
0
2003
2004
2005
2006
2007
2008F 2009F
• Regional airports on constant rise
• Three new international airports may be
created within a short proximity to the
capital city of Warsaw
Source: Civil Aviation Office
Regional Aid Map in Poland 2007 -2013
40%
50%
40%
50%
40% till 2010
30% as of 2011
50%
50%
40%
Warszawa City
30 %
50%
40%
50%
50%
50%
40%
50%
50%
Due to relatively lower GDP level in Poland the levels of admissible state
aid are higher than in most other EU countries
Maximum state aid intensity
Maximum state aid level
is calculated as a
product of the eligible
expenditures (whichever
is higher):
40%
50%
40%
50%
40% till 2010
30% as of 2011
50%
investment costs
or
2 years wage costs
50%
40%
Warsaw City
30 %
50%
40%
and state aid intensity
50%
50%
50%
40%
50%
50%
Forms of state aid in Poland
I.
Government grants through individual negotiations
individually approved and granted by the
Ministry of the Economy based on the
Council of Ministers’ Resolution
II.
CIT exemption in Special Economic Zone
only available in Special Economic Zone (SEZ)
III.
Real estate tax exemption
subject to negotiation with the local authorities
only in case if the investor is the owner of the building
(provided by the Commune Council)
IV.
Cash grants available through EU Funds
subject to negotiation with different managing
institutions depending on the investment project key parameters
All above presented instruments can be combined together however the total amount
of state aid cannot exceed the maximum aid intensity
Special Economic Zones
•
•
•
•
•
•
•
A special economic zone (SEZ) is a designated area in
which manufacturing or distribution activities can be
conducted on preferential terms
The purpose of SEZs is to support regional
development
Currently, there are 14 SEZs in Poland, each consisting
of several subzones
Total area of all SEZ – 20 000 hectares
SEZ will operate until 2020
Permits to conduct activities in SEZ are issued by the
authorities of each SEZ
Possibility of including the land selected by an investor
into SEZ
Benefits from obtaining a permit to conduct activities in SEZ :
•
•
•
eligibility for income tax exemption – a form of regional aid
plot of land prepared for an investment project, available at a competitive price
free assistance in dealing with formalities relating to the investment project
Incentives in manufacturing sector
Under what conditions? (at least)
What can you get?
Investment volume
Job creation
Investment grant
PLN 160 m
50 new jobs
Job creation grant
PLN 40 m
250 new jobs
EU funds
PLN 160 m
200 new jobs
Corporate Income Tax
Exemption
EUR 100 000
Real Estate Tax Exemption
depends on the commune
Incentives in services sector
Under what conditions? (at least)
What can you get?
Investment volume
Job creation
Job creation grant
PLN 40 m
250 new jobs
EU funds
--
100 new jobs
Corporate Income Tax
Exemption
EUR 100 000
Incentives in R&D
Under what conditions? (at least)
What can you get?
Investment volume
Job creation
Job creation grant
PLN 3 m
35 new jobs
EU funds
PLN 2 m
10 new jobs
Corporate Income Tax
Exemption
EUR 100 000
General conditions for benefiting from regional aid
 The application for aid has to be submitted before work on the project
starts
 The beneficiary of aid must provide a financial contribution of at least
25% of the eligible costs,
 The investment has to be maintained for at least 5 years from the date
of its completion (3 years in case of SMEs)
 Each newly created job has to be maintained for a period of at least 5
years from the date of its creation (3 years in case of SMEs)
 It is possible to combine various forms of regional aid however the
total aid amount cannot exceed the admissible level.
Financial allocation of EU funds to new mebers
states in years 2007-13
Source: PAIiIZ & European Commission
European Funds in Poland in 2007- 2013
13%
1%
11%
3%
43%
28%
1%
ROP
OP Development of Eastern Poland
OP Human Capital
European Territorial Cooperation
OP Innovative Economy
OP Infrastructure & Environment
TA
Investment types
Innovative investments
OP IE
Trainings
OP HC
Research & Development
OP IE
Environment protection
OP I&E
Investments of an innovative nature aimed at establishing
an enterprise, its development, production
diversification, or implementation of a fundamental change
in the overall production process together
with the use of innovative technological solutions.
Employees trainings, including e-learning and postgraduate studies (also MBA), and related advisory,
internship and traineeship.
Research & development investments consisting in
research and implementation of the research results,
as well as investments in the development of B+R activity
of the enterprise (e.g. establishing Research
& Development Centres).
Investments related to environmental protection aimed to
help the enterprise meet the environmental
protection standards and investments consisting in
creating energy from renewable sources and biofuel
production.
Investment attractiveness of cities and regions
Best cities in terms of value
for money
2007
2006
Warszawa
1
1
Prague
8
4
Paris
16
17
Madrid
10
12
London
18
Lisbon
Top 10 Most Cost Effective
1
Warszawa
2
Kraków
28
3
Wrocław
3
2
4
South of Poland
Budapest
5
6
5
Prague
Bucarest
2
2
6
Budapest
Berlin
4
8
7
Sofia
12
19
8
Bratyslava
9
Amsterdam
Source: Cushman & Wakefield,
European Cities Monitor 2007
10
Top 10 Best Economic Potential
1
Luxemburg
2
Tallin
3
Paris
4
London
5
Region Pardubice
Tallin
6
Kraków
Bucarest
7
South of Poland
8
Villnius
9
Riga
10
Gorna Oryahovitsa
Source: Financial Times,
European Cities & Regions of the Future 2008/09
Investment attractiveness - 2008
Production sector
Modern services sector
Żródło: IBNGR, 2008
"The choice of Poland was decided above all, due to its excellent location and the
close proximity of the central and eastern European markets. What was extremely
important for us, was the availability of young, highly qualified people and our
earlier positive experiences of Poles working for us in Dublin and Limerick".
Sean Corkery,
Vice President of Dell for European, Near Eastern and African Production
"We want to engage in development of Polish economy and employ Polish talents.
Microsoft plans long-term investments in this region."
William H. Gates,
President of Microsoft
Corporation
"Poland was chosen as a location for the new plant after evaluation of many factors,
not only the ones depending on costs. Poland stole the show because of wide road
infrastructure."
Judith Pickering,
Director of Investment Programme
at Cadbury Schweppes
Poland: a place to be
• Poland is 13th - most popular
tourist destination in the world
from
Germany
29,22
from EU 15
countries
Foreigners’ visitis in Poland 2007
Main tourist destinations:
from EU 12
countries
2,15
10,23
8,32
1,03
from Russia,
Belarus,
Ukraine
from other
countries
Source: Institute of Tourism May 29, 2007
Foreign
visits in Poland (2007): 50,93 mln
•
•
•
•
Kraków
Wieliczka Salt Mine
Zakopane
Warsaw
Why Poland? Summary
Strategic location
Cost effectiveness
Great number of high potential human resources
EU-Funds (110 bn USD for the period of 2007 - 2013)
Agency’s offer
Investment process
Considering of investment
Long list of countries
Short list
Investment decision
Agency’s offer
• marketing campaigns, investment
seminars, work-shops, study tours
• co-operation with Polish Embassies
abroad
• PM assistance
• site visits
• macroeconomic and sectoral data,
information on financial incentives, SEZ
and EU funds
• assistance in obtaining financial support
from the state government
• co-operation with SEZ
• date base of suppliers and business
partners and real estate data base
• after-care services
• ombudsman for foreign investors
Thank you for your attention
00-585 Warszawa, ul. Bagatela 12
tel. (+48 22) 334 98 00, fax (+48 22) 334 99 99
e-mail: [email protected]