Public Aid

Entrepreneurs considering investing in Poland can choose from various solutions, including tax reliefs, exemptions, preferential loans, and government grants, for example:

Below you will find the rules for these most popular support measures:

Decision on Support

Incentives for new investments under the Polish Investment Zone (PIZ) are available across Poland in regions eligible for regional investment aid (i.e. practically all of Poland apart from Warsaw and the surrounding municipalities). This instrument offers a CIT exemption for income generated from activities specified in the granted decision on support and conducted within the investment area. Investors can benefit from up to 15 years of CIT exemption, provided they meet specific quantitative and qualitative criteria.

BENEFIT: CIT exemption

For a duration ranging from 12 to 15 years, depending on the investment's location.

What you can get aid for?

Capital expenditures (CAPEX): e.g. real estate, tangible fixed assets, (land, buildings and plant, machinery and equipment) and intangible assets (patents, licences, know-how) OR

2-year labour costs related to jobs created as a result of the investment increased by obligatory contributions, such as social security contributions.

Amount of aid

The maximum amount of state aid in the form of CIT or PIT tax exemption is determined on the basis of the regional aid map for 2022-2027 - representing the percentage of costs eligible for regional aid (SMEs +20%/10%):

^{*+10% for entrepreneurs in some regions of Śląskie, Małopolskie and Łódzkie (Just Transition Fund);}

^{**Possible further intensity increase of 5%/10% for specific sectors (legislative works in progress)}

^{*In case of an investment implemented directly in Wrocław - 15%.}

Quantitative criteria

The first set of criteria that must be met in order to receive aid in form of a decision on support are quantitative criteria (amount of minimum expenditures).

The minimum investment costs range from PLN 0,1 million to PLN 100 million depending on the location of the investment (unemployment rate or the status of a location at risk of exclusion), the size of the entrepreneur, the range of services provided and the nature of the investment (e.g. reinvestment):

for instance, large enterprises in the Wroclaw district must invest at least PLN 100 million, while in cities like Legnica or Wałbrzych, the minimum required investment is PLN 10 million.

the required investment amount is considerably lower for SMEs and micro-investors.

similarly, in the case of reinvestment, it is possible to reduce the above requirements by 50% (however in case of reinvestment in Dolnośląskie Voivodship, aid may be granted only for specific investments – so called new economic activity).

What additional conditions need to be met?

In order to receive aid, an entrepreneur must also obtain between 4 and 6 points for fulfilling the so-called qualitative criteria (in Wrocław and Dolnośląskie Voivodeship: 6 points). What can you get them for? For meeting a selection of criteria of economic or social sustainability. These include for example:

investment in specific industries;

conducting R&D activities;

membership in a key cluster;

status of micro-, small- or medium-sized entrepreneur;

investment in a specific location (e.g., a medium-sized city losing socio-economic functions);

act in the care of the employee, etc.

The entrepreneur must also declare the creation of a certain number of new jobs. After the investment is made, the entrepreneur is obliged to maintain the investment for a certain period of time.

Grant under the Programme for Supporting Investments of Significant Importance to the Polish Economy

Cash grants are usually considered by entrepreneurs to be the most attractive form of support.

Within the framework of regional aid, the grant is awarded for investments of strategic importance for Poland, on the basis of a programme that has been set up for the period 2011-2030.

The Program provides for two titles available for support:

Grants for the creation of new jobs

Grants for eligible costs of new investment (CAPEX)

BENEFIT: direct cash grant

Agreement to be signed with the minister responsible for economy.

Quantitative criteria - value of investment and state aid

This form of targeted aid is intended for the largest investments. As a result, the minimum thresholds for investment expenditures required to qualify for aid are set at a high level. They amount to:

The level of minimum investment costs and required job creation may be lower in certain cases, including the following:

reinvestment (by 50% of the new jobs requirement; in case of reinvestment in Dolnośląskie Voivodship, aid may be granted only for specific investments – so called new economic activity);

investments in the area at risk of exclusion (by 50%);

investment made by: micro-entrepreneur (by 98%), small entrepreneur (by 95%), medium-sized entrepreneur (by 80%), developing entrepreneur (by 70%).

Qualitative criteria

In order to receive aid, an entrepreneur must also obtain between 4 and 6 points (as a minimum) for fulfilling the so-called qualitative criteria (in Wrocław and Dolnośląskie Voivodeship: as a rule 6 points).

The Program has selected 11 quality criteria (and 10 for service investments). An entrepreneur can choose a maximum of 10 of them. Each qualitative criterion is awarded 1 point for meeting it.

Qualitative points have a significant impact on the final amount of aid possible.

Maximum amount of aid

The maximum amount of support is calculated taking into account the eligible costs or number of new jobs planned to be created (depending on the type of investment), the maximum intensity of support and the number of points obtained in the qualitative assessment of the investment, according to the following formula:

Aid amount (PLN) = a x b x c ÷ 10

where the individual symbols stand for:

a – amount of investment costs (or number of newly created jobs),

b – maximum aid intensity,

c – result of a qualitative investment assessment

Temporary Crisis and Transition Framework (TCTF) - support for zero-carbon sectors

EU State aid rules are moving decisively towards supporting investments that contribute to Europe's transition to a low- or zero-carbon economy.

One of the most attractive tools for this is the new State aid funding for strategic equipment manufacturing introduced by the modified Temporary Crisis and Transition Framework (TCTF).

BENEFIT: direct cash grant

Agreement to be signed with the minister responsible for economy

Who is able to receive the aid?

Companies producing batteries, solar panels, wind turbines, heat pumps, electrolysers or CCUS (carbon capture and storage) equipment. State aid will also be provided for investments in the production of key components for such equipment. It will address both the production and recovery of critical raw materials necessary for the manufacture of equipment and components of the low-carbon economy.

Quantitative and supplementary criteria

The amount of min. expenditures and new employees: EUR 110 million; 50 new jobs.

Meeting of at least 5 supplementary criteria (out of 14). The number of points declared is relevant to the final amount of aid.

What makes TCTF so attractive?

Significantly higher limits of available aid compared, for instance, to what regional aid offers. For example, an investment of EUR 1 billion in the so-called 'a' region can get an aid up to EUR 350 million. In Wrocław – up to EUR 200 million.
The aid does not require its prior notification to the European Commission. This speeds up significantly the procedure for the real disbursement of funds, save time and expenses for such proceedings.
The investment is also be possible in areas where it would not be feasible to grant state aid in the form of regional aid. This is because its purpose is not to support specific regions, but specific industries.
In exceptional cases, where there is a real risk of investment being redirected outside Europe, Member States may grant the amount of aid that the beneficiary could have received to an equivalent investment in an alternative location (so-called ‘matching aid’ ) or the amount required to incentivise the company to locate the investment in the EEA (so-called ‘funding gap’), whichever is lower. While such aid will involve certain restrictions and require notification to the European Commission, it also offers the possibility of support on an unprecedented scale.

Aid under the new rules can be provided until 31 December 2025. However, this is not the same as the date by which projects should be completed. They may last longer, but the aid must be obtained before the indicated date.

This is a completely new perspective on a State aid and a huge investment incentive for key sectors. A big boost can therefore be expected in this sector. 

Given the time restrictions, it is worth looking at investment plans as soon as possible, and reviewing them to see if they could count on aid from the new source in the form of TCTF.

R&D Tax Relief

R&D relief is a tax preference that allows you to reduce the tax base by the costs of R&D activities that have been included by the taxpayer in tax deductible costs (eligible costs). The entrepreneurs may deduct 200% of eligible employee costs and 100% of other eligible costs. The R&D centers deduct 200% of all costs (apart from large entrepreneurs in the scope of patents – in this case 100%).

Who can benefit from tax relief?

Entrepreneurs who incurred costs for R&D activities - in practice, every entrepreneur involved in the technological development of products/processes. The result of R&D work is not necessary (the R&D project does not have to end in success/commercialization).

Main eligible costs:

remuneration and social security contributions

materials and raw materials

specialized equipment

expertise, opinions, advisory services and equivalent services, and the results of scientific research

scientific and research equipment

depreciation write-offs on fixed assets and intangible assets

obtaining and maintaining a patent

Main benefits:

the possibility of using it also in the event of a loss or when the deduction amount exceeds the tax base (then the deduction in the next 6 tax years),

the possibility of benefiting from tax relief while having the CIT exemption decisions (under certain conditions)

tax mechanism to be used any time during a fiscal year

R&D relief can be combined with the IP BOX

Robotisation Tax Relief

Robotization Tax Relief allows for additional deduction of eligible costs incurred for the purchase (lease) of new industrial robots from the tax base. The robotization tax relief allows for additional deduction of 50% of eligible robotization costs (the principles of settlement of robotization tax relief are similar to R&D tax relief). The relief is limited in time and will be valid until the end of 2026.

Who can benefit from tax relief?

A solution for entrepreneurs planning to modernise production plants, increase capacity or reduce manual work in favour of process automation

Main eligible costs

The costs of purchase or leasing of new industrial robots used in the production process, including:

software to this robot

machines and additional devices functionally attached to this robot (e.g. tracks, rotators, drivers, motion detectors or end-effectors)

machines, devices and other equipment functionally attached to this robot (for the purpose of ergonomics and work safety for employees; e.g. enclosure, guards, area scanners)

machines, devices or systems for remote management, diagnosis, monitoring or servicing of this robot (e.g. sensors and cameras)

devices for human-machine interaction

cost of training for employees operating the robot.

Characteristics of an industrial robot

automatically controlled; programmable; multitasking and stationary or mobile,

with at least 3 degrees of freedom and having manipulation or locomotion properties for industrial applications,

exchanges data in digital form with control and diagnostic or monitoring equipment for remote: control, programming, monitoring or diagnosis;

connected to information and communication systems to improve production processes, in particular to production management, planning or product design systems;

monitored by sensors, cameras or other similar devices and integrated with other machines in the production cycle.

*Conditions must be fulfilled cumulatively

Main benefits:

additional deduction of 50% of eligible robotization costs

simple settlement mechanism

unsettled tax relief (e.g. due to the generated loss or income insufficient for full deduction) may be deducted from income within the next 6 years

IP Box

A preferential tax rate on income (5%) generated from the commercialisation of intellectual property rights (e.g. patents, utility model protection rights, rights from the registration of an industrial design), created, developed or improved by an innovative company (i.e. one that carries out research and development work) as part of its business activities

Qualified intellectual property rights: created, developed or improved as part of the conducted R&D activity:

the right to an invention (patents),

additional protection rights for the invention,

protection rights for a utility model,

rights from registration of an industrial design,

rights from registration of integrated circuit topography,

additional protection rights for a patent for a medicinal product or plant protection product,

rights from registration of a medicinal and veterinary product admitted to trading,

rights from registration of new plant varieties and animal breeds,

rights to a computer program.

Basic requirements:

carrying out R&D activities related to the development, creation or improving a given intellectual property right and its commercialization,

detailed records of revenues and costs related to intellectual property rights in a manner enabling calculation of the tax base.

Main benefits:

5% CIT rate on qualified income

The period of application of the relief - the entire duration of legal protection of qualified intellectual property rights

Support not only for the IT sector