Business in Poland
Before undertaking business activity in Poland, it is necessary to choose which type of legal entity to form. Most foreign companies choose to set up a "Spólka z o.o" (Sp. z o.o.) - a Limited Liability company - but also other forms can be used.
Setting up a company is easiest done with help of local lawyers.
As a standard, companies in Poland pay 19% corporate tax on earnings. Special Economic Zones are widely used, and companies can be granted various tax benefits when investing in certain regions.
Personal income tax in Poland is 18%, growing to 32% after a certain income treshold. In addition there are other social payments, that get reduced after another treshold. To simplify, employees pays 30-40% of gross salary in taxes and other related payments.
The standard VAT-rate in Poland is 23%.
The regulation of employment in Poland is governed by the Labor Code, which applies equally and must be complied with by both the executive and the employee. Employment contracts cannot be less advantageous to the employee than the Labour Code.
Expats are liable to pay Polish taxes and social charges if they stay in the country at least 183 days during a calendar year. Both wages and prices are higher in Warsaw than in other cities of the country. The minimum salary per month in Poland is PLN 2100 in 2018. In 2019 the amount will increase to PLN 2220.
There are 3 methods of terminating employment agreement in Poland: termination by mutual consent, termination with notice and termination without notice. There has to be a valid reason for terminating the employment , unless the employee is still on a probation period.
BEING AN EXPAT
Poland is growing in popularity as a destination for Expats. As part of the EU, Polish labour market is open to all EU-citizens. Many foreigners working in Poland are fully under Polish social system, but also other solutions are possible - depending on the country of origin.
If an expat can proove being under social security of another EU-country, payment of certain social costs (ZUS) can be avoided.