The Polish Investment Zone explained: tax exemption across all of Poland

The Polish Investment Zone (Polska Strefa Inwestycji, PSI) is the scheme through which Poland rewards new investments with a corporate income tax exemption. Since the act of 10 May 2018, the PSI replaced the fourteen Special Economic Zones: the exemption no longer applies only within designated areas, but to new investments across all of Poland, typically for twelve years.

From 14 zones to the whole country

Until 2018, an investor had to settle physically in one of fourteen Special Economic Zones to obtain tax benefits. That model has been replaced: under the PSI you apply for a support decision (decyzja o wsparciu) for your own location, wherever it is. You no longer move your factory or office to a zone; the zone, in effect, comes to you.

Many websites, including advisers’ sites, still tell the old story of “14 zones until 2026”. That is outdated. Anyone investing in Poland today deals with the PSI.

How the exemption works

The core is an exemption from corporate income tax (CIT, or personal income tax for sole traders) on profit from the new investment. The main lines:

• Duration: the support decision typically runs for twelve years; the exact term depends on the region.
• Level: the exemption ceiling is a percentage of the investment costs and differs by region and company size. Less developed regions and smaller companies get more headroom.
• Conditions: the investment must meet quantitative criteria (a minimum investment size, depending on region and company size) and qualitative criteria, such as employment, innovation or cooperation with education.

Who is this for?

The PSI is designed for production and service investments: a factory, an expansion, a shared service centre. For foreign companies opening an entity in Poland or acquiring and expanding an existing business, the exemption can change the business case. Especially combined with the low base rate: 19% corporate income tax, or 9% for small companies.

Apply before you invest

Important: the support decision must be in place before the investment starts. Costs incurred before the decision do not count. Polska Consult Holland assesses whether your project qualifies, liaises with the regional zone administrator that runs the PSI, and guides the application. See also our page on tax advantages in Poland or get in touch directly.