Poland: Investing

FDI in Figures

The flows of foreign direct investment in Poland slowed down after the global recession, but have since then became again dynamic. In 2011, they grew by more than 30% in comparison to 2010. Poland figures among the most attractive countries in Europe in terms of FDI. Its main assets are its strategic position, a large population, its membership in the European Union, economic stability and a fiscal system attractive to businesses.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	14,689	13,698	9,681
FDI Stock (million USD)	163,360	186,115	193,141
Performance Index*, Ranking on 141 Economies	89	65	-
Potential Index**, Ranking on 141 Economies	42	-	-
Number of Greenfield Investments***	370	222	-
FDI Inwards (in % of GFCF****)	12.8	41.1	-
FDI Stock (in % of GDP)	31.1	42.5	-

Source: UNCTAD - Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

FDI Inflows By Countries and Industry

Main Investing Countries	2010, in %
Netherlands	17.8
Germany	13.5
France	12.4
Luxembourg	8.7
Italy	7.0
USA	6.2
Switzerland	3.8
United Kingdom	3.7
Austria	3.7
Sweden	3.5
Spain	3.3

Main Invested Sectors	2010, in %
Manufacturing Sector	31.7
Financial intermediation	18.6
Real estate, renting and business activities	17.5
Trade and repairs	15.9
Transportat, storage and communications	5.7
Electricity, gas, water	4.1
Construction	2.5

Source: OECD, Stat Extracts - Last Available Data.

Why You Should Choose to Invest in Poland

Strong Points: A fast-growing economy, location in central Europe, a multilingual work force and cheap labor costs make Poland an internationally attractive country. Poland also enjoys a well managed healthy economy, which is withstanding the crisis better than other European countries. Unlike other Central European countries, its population did not have to resort to loans in foreign currencies, in particular Swiss, a fact which protects the population from maximum debt.
Weak Points: Slow administrative procedures (according to the World Bank it takes 31days to form a company) and a deficit in the current account are the negative points linked to the Polish economy. The adoption of the Euro, initially planned for 2012 is compromised by the financial crisis and thus delaying the benefits to the economy.
Government Measures to Motivate or Restrict FDI: - Investment assistance in special economic zones (SEZ);
- Entrepreneur access to European Union structural funds;
- Creation of industrial and technological zones that enable a synergy of companies working in the same sector;
- low costs of labor.

In order to face the economic crisis and support long term foreign investments, the Polish government has formulated a stabilization and development plan of Euro 24 billion, particularly to grant credit to small and medium companies and invest in renewable energy sources.

Protection of Foreign Investment

Country Comparison For the Protection of Investors

	Poland	Eastern Europe & Central Asia	الولايات المتحدة	Germany
Index of Transaction Transparency*	7.0	6.3	7.0	5.0
Index of Manager’s Responsibility**	2.0	4.0	9.0	5.0
Index of Shareholders’ Power***	9.0	6.2	9.0	5.0
Index of Investor Protection****	6.0	5.5	8.3	5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Procedures Relative to Foreign Investment

Acquisition of Holdings: Taking a majority holding in the capital of a Polish company is allowed, as long as an authorization is obtained.
Obligation to Declare: The investment promotion agency in the country gives information about the authorizations necessary for setting up business.

Office Real Estate and Land Ownership

Possible Temporary Solutions: Regus (http://www.regus.pl/); Inoffice (http://www.inoffice.pl/); Chambers of Commerce including the CCIFP
The Possibility of Buying Land and Industrial and Commercial Buildings: Possible

Investment Aid

Forms of Aid: Poland has no funds to help foreign investors. Polish aid is only of a fiscal nature. In the framework of the European long term program PHARE, investors can obtain medium term aid. European funds are very important for SMEs and large companies based in Poland and they represent a total of 80 billion euros for the period 2007-2015, including 25 billion dedicated to infrastructure. The Polish Investment Agency provides a lot of information.
Privileged Geographical Zones: In the case of investment in special economic areas, investors can benefit from tax relief. In addition, in the case of hiring in regions with high levels of unemployment, companies can benefit from tax reductions.

Investment Opportunities

Tenders, Projects and Public Procurement: Public Procurement Office
Tenders Info, Tenders in Poland
Ted - Tenders Electronic daily, Business opportunities in EU 27
DgMarket, Tenders Worldwide

Finding Assistance For Further Information

Investment Aid Agency: The Polish Agency for Information and Foreign Investment
Polish Agency for industrial development
Other Useful Resources: Website/Guide to investment
Poland's official website
Doing Business Guides: Doing Business in Poland, 2007
Poland Commercial Guide 2010 - Buy USA

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