Poland becomes a special economic zone for investors

A new law that extends the special economic zone benefits to Poland’s entire area was given the go-ahead on Wednesday. Photo: Pixabay/Marys_fotos

A new law that extends the special economic zone benefits to Poland’s entire area was given the go-ahead on Wednesday.

The new regulations approved in parliament are geared at companies investing in the country’s less developed regions.

Currently, Poland has 14 special economic zones that cover 25,000 hectares, or 0.08 percent of the country's territory.

Under the bill, the amount of tax incentives investors receive will depend on the socio-economic significance of the investment. Preference will be given to investments in struggling medium-sized towns.

The new rules mean that small and medium-sized companies will no longer need to move their operations to special economic zones to attract foreign investors.

The changes will offer the special-economic-zone-type benefits to an number of small and medium-sized firms, according to Entrepreneurship and Technology Deputy Minister Tadeusz Kościński, who promoted the bill.

The preferential conditions will be offered for a period of 10 to 15 years. The bill does not affect the arrangements already agreed in the currently-operating SEZs.

The idea dates back to 2017, when Prime Minister Morawiecki explained how it would work during the Economic Forum in Krynica, south-east Poland

“Each community, despite its size and particularities, each and every sq kilometre out of over 312,000 stands a chance of becoming an attractive investment zone.” Mr Morawiecki was reported as saying.

Other countries in the CEE region, including the Czech Republic, Hungary and Slovakia, have already introduced similar measures to meet foreign investors' expectations.

Economists explain that the process of SEZ expansion can be seen as an organic development, driven by the needs of investors. For instance the LG’s factory near Wrocław is registered as a part of the Tarnobrzeg Special Economic Zone,despite the fact that the latter is 460 kilometers away.

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