Poland as a winning strategy for innovation and business

Introduction

Poland has become one of Europe’s most attractive locations for IT, FinTech, and innovation-driven businesses. International founders and technology companies are increasingly considering Poland for its advantages: a supportive tax environment, modern digital solutions, and straightforward processes for company establishment and expansion, as reflected in our growing client inquiries.

Poland’s attractiveness is built on a business-friendly tax framework, extensive incentive programs, and a highly digitalized public administration. Companies benefit from modern solutions such as fully online incorporation, as well as access to the Polish Investment Zone and EU-funded programs. Drawing on our experience in structuring, relocating, and scaling technology businesses in Poland, we observe how these instruments enable companies to optimize tax positions, secure public funding, and enter the market faster while maintaining full regulatory compliance.

Online business registration

Undoubtedly, one of the key advantages why our clients, innovative businesses, choose Poland as a jurisdiction for doing business is the possibility of fully online incorporation. Due to the digitalization of public services, business registration in Poland is fast and technically straightforward. In particular, through the Ministry of Justice’s S24 system, a limited liability company can be registered entirely online within a few days, without the founders’ physical presence. Similarly, sole proprietorships can be registered remotely via the Biznes.gov.pl portal or selected banking services.

Further interaction with the state is also largely automated: implementing a national system of electronic invoicing and digital reporting standards reduces the need for on-site tax audits. This enables technology companies, particularly in the FinTech and IT sectors, to enter the market more quickly and focus their resources on operations rather than administrative procedures.

Access to the EU market and human capital

Beyond digital convenience, Poland’s strong position as a logistics and operational hub for Central and Eastern Europe offers strategic access to the EU single market. Registering a Polish company grants quick access to free movement of goods, services, capital, and labor across the EU—critical benefits for scaling businesses without extra barriers.

One of the key factors remains the quality of human capital combined with competitive labor costs. Poland consistently ranks among the leaders in global rankings of IT developer and engineer qualifications. For international companies, this creates a unique balance, enabling them to hire top-level specialists while keeping labor and office rental costs on average 30-40% lower than in Western Europe or the US.

Incentives for developers of new technologies

Another aspect worth noting is Poland’s comprehensive system of tax incentives aimed at companies developing new technologies. The tax break for research and development allows companies to deduct up to 200% of eligible expenses for personnel involved in creating innovative products. Combined with the Innovation Box (also known as the IP Box), which reduces the income tax rate to 5% on income derived from intellectual property rights, this creates exceptional conditions for the commercialization of inventions.

In addition, there is assistance for robotization, which allows deducting 50% of the costs of implementing new robots and software until the end of 2026. In practical terms, the robotization tax credit significantly lowers the effective cost of automation projects. By allowing an additional 50% deduction of eligible expenses, the incentive accelerates the return on investment for companies implementing robotics, cobots, and related software solutions, regardless of business size. This makes Poland particularly attractive for manufacturing, logistics, and technology-driven enterprises seeking to increase productivity and resilience.

Also, Poland offers two levels of tax incentives for relocation. Specialists are eligible for a return allowance, which exempts income up to PLN 85,528 per year from taxation for four years. Separately, large investors can take advantage of a flat tax regime on foreign income, which allows them to pay a fixed amount of PLN 200,000 per year on all foreign income, provided that they invest PLN 100,000 annually in areas specified by the state (science, culture, sports).

Tax efficiency through the Estonian CIT Regime

Another important advantage of choosing Poland as a jurisdiction is the availability of the Estonian Corporate Income Tax (“CIT”) regime – a preferential system of corporate taxation that offers a simplified approach to tax settlement and reduced accounting obligations.

In Estonia, CIT income tax is paid only at the time of dividend distribution, rather than when it is received. This allows companies to retain 100% of their liquidity for immediate reinvestment in development. An additional advantage is the radical simplification of administration: the tax base is net accounting profit, eliminating the need for complex parallel accounting of “tax expenses” and minimizing the risk of audit errors.

From a financial benefit perspective, the Estonian model provides a lower total burden at the “company + owner” level – approximately 20% versus 26% or more under the classic scheme. However, unlike the universal traditional system, this regime is a privilege for active businesses: it requires a transparent ownership structure (only individuals can be shareholders) and limits passive income, such as interest or royalties, to 50% of total turnover.

Polish investment zone and tax preferences

Another important advantage of doing business in Poland is access to the Polish investment zone and related tax preferences. Unlike traditional special economic zones, the Polish investment zone is a nationwide support instrument that provides income tax exemptions for 10 to 15 years, regardless of the project’s location. The tax relief is granted in the form of a support decision and is calculated as a percentage of investment costs or two-year labor costs. To obtain it, the investor must meet quantitative criteria (minimum capital) and qualitative requirements focused on innovation, sustainable development, and the creation of highly skilled jobs.

Additionally, Poland offers another structural advantage for international groups through its tax framework. An extensive network of over 90 double taxation agreements and a favorable Polish holding regime. This ensures the predictability of the tax burden when paying dividends, royalties, or interest, and also allows for effective capital structuring, making the Polish jurisdiction safe and financially justified from the perspective of compliance and tax planning.

In addition to tax instruments, a critical component of the Polish ecosystem is direct non-repayable funding through the FENG (European Funds for a Modern Economy) program with a budget of approximately €7.9 billion. The main advantage is the modular “Ścieżka SMART system”, which allows businesses to attract grants not only for scientific development but also for their direct implementation in production, digitalization of processes, green transformation, and international expansion. For small and medium-sized companies, support can reach 70-80% of the total project budget, effectively minimizing capital risks when launching complex technological solutions.

Conclusion

Poland stands out as a strategic destination for innovation-driven businesses due to its fully digital processes, attractive and flexible tax rates, extensive grant programs, seamless EU market access, and a skilled workforce. These key benefits foster growth, scalability, and technological development, making Poland a true winning strategy for IT, FinTech, and technology companies seeking efficiency and competitiveness in Europe.

At Manimama Law Firm

At Manimama Law Firm, we assist businesses in navigating this regulatory environment. We support documentation, manage application processes, and develop long-term compliance strategies for crypto-related businesses.