Transcript Poland

Embassy of Poland
Trade & Investment Promotion
Section
INVESTMENT CLIMATE AND
BUSINESS OPPORTUNITIES
IN POLAND
Krzysztof Turowski, Counsellor, Head of Section
Ghent, February 26, 2013
Poland - Key Facts
Area:
312 700 sq km – 6th in European Union
Population:38,12 million –
6th in European Union
Currency: Polish Zloty (1 USD ~ 3.1 PLN, 1 EUR ~ 4.1 PLN)
GDP:
EUR 371,878 billion (2011) – GUS estimation
EUR 280.756 billion (Q3 2012) – GUS estimation
GDP per capita: EUR 16 000 (2011)
GDP growth:
Membership:
1.6% (2009), 3.9% (2010), 4.3% (2011),
2.0% (2012 – preliminary data)
EU, NATO, OECD, WTO, Schengen Zone
Competitive Advantages
Location & economic fundamentals
1000 km radius
250 mn people
 strategic location in continental Europe
 part of trans-European transportation corridor
 third fastest growing EU country in 2010
38 million consumers
Labor force
 young, well-educated work force
 ca 11% of university students in the EU
 455 universities & high education schools
 language proficiency
 increasing labour productivity
Investment incentives
 tax exemptions in 14 Special Economic Zones
 grants co-financed from the EU (EUR 90 bn)
2000 km radius
550 mn people
Polish economy in figures –
GDP growth in recent years
* Preliminary data
Polish economy in figures
– inflation rate
Source – Central Statististical Office
EU 27 average in 2012 = 2,6%*
* Provisional data
- source Eurostat
Polish economy in figures unemployment rate
Pomorskie
12,4%
2012
13.4%
Warmińsko-Mazurskie
19,5%
Zachodnio-Pomorskie
16,7%
Podlaskie
13,8%
Małopolskie
10,6%
Source: Central Statistical Office, as of September 2012
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
Podkarpackie
15,1%
0
04
Śląskie
10,4%
Świętokrzyskie
14.8%
10
20
Opolskie
13,2%
Lubelskie
13,0%
03
Łódzkie
13,2%
20
20
Wielkopolskie
9,1%
Dolnośląskie
12,5%
15% >
11-15
10% <
Mazowieckie
10.2%
02
Lubuskie
15,1%
20
Kujawsko-Pomorskie
16,7%
Tax rates
• Corporate Income Tax (CIT) rate
19%
• Personal Income Tax (PIT) rate
18% and 32%
• Value added tax (VAT)
basic rate: 23%
reduced rates: 8%, 5%
export rate: 0%
• Social Security Tax paid by employer
between 19.48% and 22.14%
Corporate income tax rates
across Europe
Bulgaria
Ireland
10%
13%
Latvia
15%
Lithuania
15%
Romania
Poland
19%
Hungary
19%
Slovakia
19%
Estonia
Entrepreneurs in Poland
pay one of the lowest CIT
in Europe
16%
21%
Czech Rep.
20%
Slovenia
20%
Ukraine
25%
Netherlands
26%
Finland
26%
Sweden
UK
Spain
26%
28%
30%
Germany
33%
France
33%
Belgium
Source: www.wodlwide-tax.com
34%
Polish economy in figures
– foreign trade
in EUR billion
* Estimation – Ministry of Economy
Polish economy in figures –
trade exchange with the EU
countries
Export
1. Germany: 35 650,34
2. U.K:
9 552,38
3. Czech Rep: 8 910,15
4. France :
8 274,55
5. Italy:
6 901,83
6. Netherlands: 6 340,71
7. Sweden:
3 757,54
8. Slovakia:
3 637,22
9. Hungary:
3 428,84
10. Belgium:
2 927,69
Import
1. Germany: 32 057,52
2. Italy:
7 785,80
3. France:
6 010,20
4. Netherlands: 5 833,43
5. Czech Rep.: 5 542,53
6. U.K.:
3 683,28
7. Belgium:
3 381,77
8. Slovakia:
3 166,09
9. Spain:
2 962,14
10. Sweden:
2 852,17
Polish-Belgian commercial turnover: 6 309,46 (9th place)
Preliminary data of the Ministry of Economy; in EUR million
FDI flows worldwide & in Poland
in 2011 (bn USD, UNCTAD)
World
Poland
Source: UNCTAD, 2012.
World Investment Report 2011
World’s most attractive
destinations for Foreign
Direct Investments
Rank 2011
(2010)
Source: World Investment Report, 2011
Country
1
China
2
USA
3
India
4
Brazil
5
Russia
6 (12)
Poland
:
:
9
Germany
13
UK
14
Singapore
According to UNCTAD the key
factors attracting FDI to Poland are:
• rapidly expanding domestic market
• size of the domestic market
• flexible & skilled labour force
• high quality/cost ratio
Growth reasons:
1. Cash reserves of MNCs
2. Restructurization / Delocation
3. Undervalued companies
Investment attractiveness of Poland
– strengths
Source: AmCham, KPMG
Investment attractiveness of
Poland – weaknesses
Support from
government
institutions
0,00
-0,20
-0,40
-0,60
-0,80
-1,00
-1,20
-1,40
Source: AmCham, KPMG
Simplicity of tax
system
Red tape
Quality of railway
system
Quality of road
system
Forms of regional aid
 Tax breaks
 CIT exemption in Special Economic Zone
 Real estate tax exemption
 Cash support
 Government grants through individual
negotiations
 Cash grants available through EU Funds
Special Economic Zones
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A special economic zone (SEZ) is a designated area in which
manufacturing or distribution activities can be conducted on
preferential terms
The purpose of SEZs is to support regional development
Currently, there are 14 SEZs in Poland, each consisting of
several subzones
Total area of all SEZ – 20 000 hectares
SEZ will operate until 2020
Permits to conduct activities in SEZ are issued by the
authorities of each SEZ
Minimum investment: EUR 100,000
Possibility of including the land selected by an investor into
SEZ
Benefits from obtaining a permit to conduct activities in SEZ :



eligibility for income tax exemption – a form of regional aid
plot of land prepared for an investment project, available at a competitive price
free assistance in dealing with formalities relating to the investment project
Government grants
Program of support of investments of considerable
importance for Polish economy
Production
Modern services
 automotive
 ICT
 electronics
 SSC
 aviation
 BPO
 biotechnology
 R&D activity
 „big investment” in other sectors
Purpose of support
 development of innovativeness and competitiveness of Polish economy
Result of support
 50 programmes of total amount 13,5 bn PLN (since 2004 r.)
 33,7 thous. of new jobs
Source: PAIiIZ, Ministry of Economy
Students and graduates
 20 m people aged 35 and less
 455 higher education institutions
 almost 2 m students
• 18 universities
 more than 430 thous. graduates every year
• 22 technical universities
 more than 90% of students know foreign
• 95 academies of economics
 growing number of science students
languages
Main academic centers
Students in Poland
TRI-CITY
OLSZTYN
SZCZECIN
City
BIALYSTOK
Students
Graduates
BYDGOSZCZ/TORUN
Warszawa
276 000
65 300
Wroclaw
146 000
30 000
Katowice
112 000
23 500
Krakow
185 000
35 500
101 – 150
Poznan
137 500
33 000
51 – 100
Tricity
95 000
20 500
Lodz
120 500
27 500
WARSZAWA
POZNAN
ZIELONA GORA
LODZ
LUBLIN
WROCLAW
201 >
KIELCE
OPOLE
KRAKOW
KATOWICE
No. of students (thousands)
151 – 200
RZESZOW
50 <
Source: Central Statistical Office
Why Poland? Summary
Strategic location – gateway to EU
Economic and political stability
Availability of skilled human resources
Innovative economy
Effective incentives system including EU-Funds
Thank you for your attention!
Trade & Investment Promotion Section
Embassy of Poland in Brussels
Av. de l’Horizon 18
1150 Brussels
Phone +32 2 771 67 54
Fax
+32 2 771 18 39
E-mail:[email protected]
www.brussels.trade.gov.pl