Are you looking to set up a business in Europe? Consider Poland! Here are ten reasons why.
Making smart investments in a stable and thriving economy is a no-brainer, and Poland shines brightly. It has consistently outperformed many European nations economically, making it a prime destination for business ventures.
Poland boasts an ideal startup environment, a friendly business climate, knowledgeable entrepreneurs, and robust government support. Unsurprisingly, Poland consistently ranks high among Central and Eastern European countries regarding its appeal to investors. What makes Poland stand out? There’s steady economic growth, strong domestic demand, strategic proximity to major European markets, access to a skilled workforce, and continuously improving infrastructure.
So, if you’re pondering the idea of expanding your business internationally, in this article, we’ll walk you through the myriad advantages of doing business in Poland:
Location
Poland’s strategic location is a big draw for entrepreneurs. Situated at the crossroads of Western and Eastern Europe, it is a vital link between the two, making it a key player in the Central European market for trade and transport. Additionally, its central position provides easy access to major European cities like Berlin and Prague, facilitating the movement of goods and services across the continent by road and rail.
Furthermore, Poland has become a hotspot for international companies seeking to expand their presence in Central and Eastern Europe. Many multinational corporations have chosen Warsaw as their headquarters due to its proximity to other important regional business hubs.
Being part of the European Union (EU) since 2004, Poland offers businesses access to a vast consumer market of more than 500 million people. This EU membership also means Poland follows standardized regulations and standards, simplifying cross-border trade.
Recent infrastructure developments in Poland have further improved its business environment. New motorways and faster intercity trains have enhanced logistics across the country. The construction of the North Sea-Baltic Corridor has strengthened connections between Central, Eastern, and Western European nations, making Poland an even more attractive destination for businesses.
Powerful Economy
Poland boasts a robust economy with a remarkable Gross Domestic Product (GDP) that has consistently demonstrated substantial growth. Poland’s GDP exceeded $600 billion, making it one of Europe’s largest and most dynamic economies. This impressive figure reflects Poland’s resilience and economic stability.
One of the key factors contributing to Poland’s economic strength is its strategic location in Central Europe, facilitating trade and commerce with neighboring countries. Additionally, the country’s strong industrial base and a well-educated workforce have attracted numerous international businesses, further fueling economic growth. Poland’s labor force is skilled and cost-effective, making it an attractive destination for foreign investments.
Furthermore, Poland’s prudent fiscal policies and commitment to economic reforms have played a pivotal role in maintaining a business-friendly environment. The government has implemented pro-business measures, steadily increasing foreign direct investment (FDI). Poland had received over $24.8 billion in FDI, highlighting its appeal to global investors.
English Proficiency
Polish professionals have become increasingly proficient in English, dramatically facilitating business interactions and opportunities. In recent years, Poland has made remarkable progress in English language proficiency. Approximately 14 million Poles have some level of English proficiency, a total population of around 38 million. In fact, according to the 2022 EF English Proficiency Index, Poland is ranked 13th, indicating a high level of English proficiency among its population.
This linguistic proficiency has significant advantages for business. English is the global language of commerce, and Polish professionals who are fluent in it can easily communicate with partners, clients, and customers worldwide. This fluency also enables them to access a wealth of international resources, market data, and business research, which can be invaluable for making informed decisions.
Furthermore, Poland’s education system strongly emphasizes English language learning, with English classes starting at an early age. Many universities in Poland offer programs in English, attracting international students and fostering a multicultural environment that enhances language skills.
Educated Workforce
Poland boasts a highly educated and diligent workforce, making it an ideal environment for business growth. With a literacy rate of over 99.79%, education is deeply ingrained in Polish culture. The country has numerous prestigious universities and technical schools, producing a skilled labor force with expertise in various fields.
Poland’s commitment to education is reflected in its workforce’s qualifications. Eurostat says over 40% of Polish adults aged 30-34 hold a tertiary degree, surpassing the European Union average. This skilled workforce is well-prepared for the demands of the modern business world.
Polish people are renowned for their strong work ethic, often called “workaholics.” They value professionalism and dedication, which translates into high productivity. Statistically, Poland ranks favorably in terms of productivity compared to other EU countries. This work ethic and a well-educated population make Poland an attractive destination for businesses seeking reliable and skilled employees.
Affordable Cost of Living
Poland has become an attractive destination for businesses and individuals alike due to its lower cost of living and affordability. The country’s cost of living is significantly lower than many Western European nations, making it an ideal place to live and conduct business. According to data from Numbeo, the cost of living in Poland is approximately 40% lower than in the United Kingdom and 30% lower than in Germany.
One of the key factors contributing to Poland’s affordability is its competitive labor costs. The average monthly gross salary in Poland is considerably lower than in Western European countries, which allows businesses to save on labor expenses while maintaining a skilled workforce. Additionally, the cost of office space and utilities in Poland is relatively low, making it more cost-effective for companies to establish and operate offices or manufacturing facilities.
Moreover, Poland’s favorable tax environment, including a corporate income tax rate of 19%, has attracted foreign investment and entrepreneurs. This combination of factors has led to a thriving business ecosystem in Poland, with many startups and multinational companies choosing to set up operations there.
Trade Incentives
Poland extends a welcoming hand to foreign businesses, backed by financial support from the European Union and local sources. This support encompasses a diverse range of incentives tailored to each project, including regional assistance, government grants, and specially designated economic zones offering favorable conditions for growth.
The Polish government actively supports foreign investment through incentives such as tax exemptions and grants. The Special Economic Zones (SEZs) offer tax breaks of up to 70% in corporate income tax for qualifying companies. Moreover, Poland’s competitive labor costs and skilled workforce are significant advantages for businesses seeking to establish a presence there.
Business Friendly Atmosphere
Firstly, Poland boasts a competitive corporate tax rate of 19%, one of the lowest in the European Union, making it an appealing destination for foreign investments. Additionally, it offers tax incentives for research and development activities, further encouraging innovation and growth.
Poland’s access to European Union funds is a significant advantage. The country received substantial EU funding, including over €90 billion from the European Structural and Investment Funds for 2014-2020. These funds support infrastructure development, entrepreneurship, and regional growth.
The availability of venture capital and angel investors has surged, with Polish startups attracting significant investments. Venture capital investments totaled 775 million euros in 2022, with Iceye, the global leader in deploying SAR (synthetic aperture radar) technology in microsatellites, receiving the most cash.
Growing Tech Market
Poland has emerged as a burgeoning software tech hub, facilitating business growth and innovation on a massive scale. With its strategic location in Central Europe and a highly skilled workforce, Poland has become a destination for companies seeking software development services. The numbers speak for themselves: in 2021, Poland boasted over 450,000 IT professionals, which has likely grown substantially since then.
This talent pool has been instrumental in attracting major global players such as IBM, Google, and Microsoft to establish their research and development centers in the country. Poland’s cost-effective yet high-quality software development services have also enticed numerous startups and enterprises to outsource their IT needs to Polish firms.
The impact of Poland’s tech prowess extends beyond its borders. The country consistently ranks among the top outsourcing destinations in Europe, with a thriving software export industry worth billions of dollars. Its tech-friendly policies and infrastructure investments have transformed Poland into a dynamic software development and tech entrepreneurship ecosystem. As of 2022, it was already home to over 20,000 IT companies.
Investment in projects
Poland has some exciting and ambitious plans on the horizon. First up is constructing a central airport, set to be a game-changer. This mega project, located just 37 km from Warsaw, will seamlessly connect air, rail, and road transport, making it a crucial hub for travelers. Initially, it will cater to 45 million passengers, with plans to eventually serve 100 million. The first phase is set to wrap up by the end of 2027.
Quality of Life
Poland boasts a remarkable quality of life, characterized by high life expectancy and a vibrant, youthful population, creating a conducive environment for business and innovation. With a life expectancy of over 78 years, Poles enjoy a longer and healthier life, providing a stable and skilled workforce. What sets Poland apart is its youthful demographic; the median age is around 25.8 years, with a significant portion of the population under 30. This youthful vigor infuses dynamism into the business landscape.
Moreover, Poland’s educational system has been producing a steady stream of skilled professionals, making it an attractive destination for investors. Impressive statistics underscore the ease of doing business; in the World Bank’s Ease of Doing Business Index, Poland consistently ranks high, making it a fertile ground for entrepreneurs. With a high quality of life, long life expectancy, and a youthful workforce, Poland offers a promising environment for personal well-being and business growth.
