Investment incentives in Poland

Admissible intensity of  regional aid is expressed as a percentage of qualifying costs, which include: investment outlays (aid for initial investment) or value of two-year labor costs of newly employed workers (aid for job creation).  The regional aid for initial investment may be granted along with the aid for job creation, provided that the overall amount of aid does not exceed the maximum admissible amount of aid. Admissible amount of state aid is defined as the product of the maximum intensity of aid and the higher of the following two amounts: the value of investment outlays or the two-year labor costs of newly hired employees.

With the exception of aid granted in favour of large investment projects the maximum aid intensity is increased for microenterprises and small-sized enterprises by additional 20 percentage points and for medium-sized enterprises by additional 10 percentage points. For large investment projects the level of aid is reduced.

The admissible amount of aid for a large investment project (qualifying expenditures exceeding EUR 50 million) will be calculated according to the formula: 

Mmaximum amount of aid = R × (50 + 0,50B + 0,34C)

Where:

R - is the maximum aid intensity allocated to the given area;
B - is the qualifying expenditure between EUR 50 million and EUR 100 million;
C - is the qualifying expenditure above EUR 100 million.

Every case of regional investment aid must be notified to the European Commission if the aid proposed for the large investment project exceeds 75 % of the maximum admissible aid that an investment of EUR 100 million may obtain under the rules described above. Proposed aid cannot be put into effect before the Commission takes a decision authorizing such aid.

Maximum admissible intensity of regional aid in Poland (from July 2014):

 Region (Voivodeship)                                                                                                                          Maximum intensity

 Source: Polish Information & Foreign Investment Agency, Investor Services Department