Polish Investment Zone: CIT Exemption for New Investments

The Polish Investment Zone is a nationwide investment incentive scheme that allows eligible businesses to obtain a corporate income tax exemption for income generated from a new investment in Poland. Unlike the former system based primarily on designated special economic zones, the Polish Investment Zone can apply across the country, subject to location-specific conditions and an individual decision on support for a new investment. As the special economic zones are due to cease operating at the end of 2026, the Polish Investment Zone is becoming the main CIT incentive for new investments in Poland [6].

For foreign investors, the scheme may materially improve the financial viability of a manufacturing, logistics, technology or business-services project. However, the exemption is not automatic. It depends on the investment meeting statutory criteria, filing an application for a decision on support before the investment is commenced, obtaining the decision on support, and maintaining compliance throughout the exemption period.

How the Polish Investment Zone CIT exemption works

The legal basis for the Polish Investment Zone is the Act of 10 May 2018 on Supporting New Investments. The tax exemption itself is regulated by Article 17(1)(34a) of the Polish Corporate Income Tax Act. Under this provision, income earned from the implementation of a new investment specified in a decision on support may be exempt from CIT, up to the maximum amount of regional state aid available to a given investor and project [1][2].

The exemption is calculated on income from the implementation of the new investment specified in the decision on support, provided that the income is earned in the area specified in that decision. It is therefore not a general reduction of the company’s total Polish tax liability. The scope of the decision, including the investment location, eligible expenditure, minimum investment expenditure, completion deadline and the business activity covered by the decision, must correspond to the actual project.

Lawyersinpoland.com by Kopeć & Zaborowski advises investors on the legal structure of investment projects, the application process and compliance risks connected with tax incentives in Poland.

Decision on support for a new investment

A decision on support is an administrative decision issued on behalf of the minister responsible for economic affairs by the company managing the relevant Polish Investment Zone area (the former special economic zone management companies). The decision specifies the investor, the location and subject of the new investment, the minimum eligible costs, the maximum eligible costs, the deadline for completing the project and the conditions to be met by the entrepreneur, including applicable quantitative and qualitative criteria [1].

The application for a decision on support should be filed before the investor starts work on the investment or enters into commitments that may be treated as commencing it, as EU state-aid rules require the aid to have an incentive effect [5]. Under Article 13(9) of the Act on Supporting New Investments, the investment is commenced by the start of construction works, the first legally binding commitment to order equipment or any other commitment that makes the investment irreversible, whichever occurs first [1]. The purchase of land and preparatory activities, such as obtaining permits or carrying out feasibility studies, are not treated as commencement of the investment. The exact assessment depends on the factual situation and the nature of the commitments made.

The decision is granted for a fixed period. The Act allows a period of 10 to 15 years, depending on the aid intensity applicable in the area, and provides for 15 years where at least 51% of the investment site lies within a special economic zone (Article 13(3)–(5)) [1]. Under the implementing regulation, decisions issued since 30 December 2023 are granted for 12 years in Lower Silesia, Greater Poland and the eligible municipalities of the Warsaw region, 14 years in areas with a 30% or 40% aid intensity and 15 years in areas with a 50% aid intensity [3]. Decisions issued earlier keep their original periods. A government draft amendment to the Act, under work in 2026, proposes a uniform 20-year period regardless of location, as well as an electronic ePSI platform and clearer rules on the exempt income from reinvestments; until it is adopted and enters into force, the current periods apply [6].

Eligible costs and job creation criteria

The amount of available CIT exemption is based on either eligible investment costs or eligible two-year labour costs of newly created jobs. The investor generally selects the method that is more appropriate for the project. Eligible investment costs may include expenditure on land or perpetual usufruct rights, buildings, structures, machinery, equipment, intangible assets and certain lease or rental arrangements, provided that the expenditure meets statutory and EU state-aid requirements. For large enterprises, intangible assets may account for no more than 50% of eligible costs. In all cases, at least 25% of eligible costs must be financed from the investor’s own or external sources free of public support [3].

The formula, where the aid is calculated on the basis of eligible investment costs, is broadly as follows:

Maximum tax exemption = eligible costs × maximum regional state-aid intensity.

For example, if eligible costs amount to PLN 20 million and the applicable aid intensity is 30%, the maximum total public aid for those costs may generally reach PLN 6 million. Both the eligible costs and the aid are discounted to the date of the decision on support [3]. The actual CIT exemption is then used gradually as the company earns exempt income from the supported new investment.

Investment thresholds are not identical throughout Poland. They depend on the size of the enterprise and the unemployment rate in the county where the investment is located. For large enterprises, the minimum eligible costs range from PLN 100 million in counties where unemployment is at or below 60% of the national average to PLN 10 million where it exceeds 250% of that average. The thresholds are reduced by 90% for medium-sized, 95% for small and 98% for micro-enterprises, by 95% for large and medium-sized enterprises providing selected business services (such as IT, accounting, engineering or call-centre services) and by 50% for reinvestments in an existing plant. A PLN 10 million threshold also applies in selected medium-sized towns losing socio-economic functions and, since 11 July 2025, in selected counties along the borders with Belarus, Russia and Ukraine [3].

Applicants must also satisfy quantitative and qualitative criteria set out in the Regulation of the Council of Ministers of 27 December 2022 on public aid granted to certain entrepreneurs for the implementation of new investments, which replaced the 2018 Regulation on 1 January 2023 [3]. Qualitative criteria are divided into economic and social sustainable-development criteria and may concern, for example, research and development activity, robotisation and automation, renewable energy, the creation of high-paid or specialised jobs, cooperation with vocational education, employee care, low environmental impact or location in a less-developed area. As a rule, the investor must score at least 6 points (5 points in 40% areas and 4 points in 50% areas), with at least one point in each category [3].

Maximum state aid intensity by region

Maximum state-aid intensity by region is a central element of the Polish Investment Zone system. The percentages are determined under Poland’s regional aid map for 2022-2027 and vary depending on the location of the investment [4]. Areas with lower levels of economic development generally offer higher support intensity.

For large enterprises, the regional aid ceiling ranges from 15% (Poznań, the Poznań subregion and Wrocław, from 2025) to 50% of eligible costs, depending on the location [4]. The City of Warsaw and most of the surrounding municipalities are not eligible for regional aid, so a decision on support cannot, as a rule, be obtained there; only selected municipalities of the Warsaw region qualify, at 25% or 35%. Small and medium-sized enterprises may benefit from an increase in the aid ceiling by 20 percentage points for micro and small enterprises and 10 percentage points for medium-sized enterprises, but this increase does not apply to large investment projects with eligible costs exceeding EUR 50 million [3][4][5]. Since 23 July 2025, the ceilings have also been raised by 10 or 5 percentage points, depending on the area, for investments covered by the EU STEP Regulation [4].

Investors should verify the exact ceiling for the municipality or county where the project will be implemented. A project located only a short distance away may fall under a different aid-intensity category. This can affect both the value of the CIT exemption and the choice of investment location.

Three key limitations of the PSI tax exemption in Poland

Three limitations should be considered before relying on a Polish Investment Zone incentive.

1. The exemption applies only to qualifying income. Article 17(1)(34a), read together with Article 17(4) of the Corporate Income Tax Act, limits the exemption to income from the implementation of the new investment specified in the decision on support, earned in the area specified in that decision [2]. Revenue from unrelated activities does not automatically benefit from the exemption.
2. The total relief cannot exceed the available state-aid limit. The CIT exemption must be combined with other public support received for the same eligible costs. Grants, subsidies and other incentives may reduce the remaining aid capacity.
3. Certain projects and sectors may be excluded or restricted. The detailed exclusions and limitations follow the Act on Supporting New Investments, the 2022 Regulation and EU state-aid rules [3][5]. Excluded activities include, among others, construction, wholesale and retail trade, accommodation and catering, financial and real-estate services and activities requiring an energy licence, while the exclusion of arms and ammunition manufacturing was lifted in July 2025. Particular attention is required in sectors subject to specific state-aid restrictions, including transport, steel, coal and certain energy-related activities. In Lower Silesia, Greater Poland and the eligible Warsaw-region municipalities, large enterprises may obtain a decision only for an investment that starts a new economic activity [3].

Compliance and tax-risk management for foreign investors

The financial benefit of a decision on support may be significant, but errors in implementation can create material tax exposure. Risks include incorrectly identifying eligible costs, exceeding deadlines, changing the location or scope of the project without obtaining an appropriate amendment to the decision, failing to meet conditions specified in the decision on support, failing to maintain the investment and the new jobs for the required period (generally five years for large enterprises and three years for SMEs), or allocating income incorrectly between exempt and taxable activities [3]. If the decision is revoked, the tax exemption is lost and the unpaid tax must be settled [2].

Where a company carries out both qualifying and non-qualifying activity, the activity covered by the decision must be organisationally separated and reliable accounting and documentation are essential [2]. The company must be able to demonstrate how exempt income was calculated and how costs were allocated. This is particularly important during a tax audit or an examination of compliance with the decision on support.

Investors should also assess the incentive before selecting the Polish entity, financing method and operational model. Corporate, labour, regulatory and transfer-pricing issues may affect the overall effectiveness of the project.

This is informational material, not legal advice. For support in assessing an investment project, preparing an application or managing CIT exemption compliance, contact the Kopeć & Zaborowski legal team.

FAQ – Polish Investment Zone

What is the Polish Investment Zone?

The Polish Investment Zone is a state-aid mechanism under which businesses may obtain a CIT exemption for income earned from the implementation of a qualifying new investment carried out in Poland.

Is the PSI tax exemption in Poland available to foreign companies?

Yes. Foreign investors may apply for a decision on support if they conduct or plan to conduct eligible business activity in Poland and meet the statutory investment and quality criteria. The CIT exemption is available to the extent that the investor is subject to Polish CIT on the relevant income, including through a Polish company or, where applicable, a permanent establishment in Poland.

Must an application for a decision on support be filed before starting the investment?

As a rule, yes. The application should be filed before the investor starts work or enters into commitments that may be treated as commencing the investment. The assessment depends on the factual circumstances.

How long can the CIT exemption last?

Under the current rules, a decision on support is issued for 12, 14 or 15 years, depending on the regional state-aid intensity applicable to the investment location, and for 15 years where the site lies mainly within a special economic zone. A draft amendment under work in 2026 proposes a uniform 20-year period.

What costs can be included as eligible costs?

Eligible costs may include expenditure on land or perpetual usufruct rights, buildings, machinery, equipment, intangible assets and certain leasing or rental arrangements. The costs must satisfy Polish and EU state-aid conditions.

Can a company combine the Polish Investment Zone exemption with grants?

Potentially yes, but all public aid for the same eligible costs must be aggregated. The combined support cannot exceed the applicable maximum state-aid intensity.

Bibliography

[1] Act of 10 May 2018 on Supporting New Investments, consolidated text: Journal of Laws of 2025, item 469.

[2] Act of 15 February 1992 on Corporate Income Tax, in particular Article 17(1)(34a), Article 17(4)–(6d), consolidated text: Journal of Laws of 2026, item 554, as amended.

[3] Regulation of the Council of Ministers of 27 December 2022 on public aid granted to certain entrepreneurs for the implementation of new investments, consolidated text: Journal of Laws of 2025, item 108, as amended (Journal of Laws of 2025, item 833).

[4] Regulation of the Council of Ministers of 14 December 2021 on establishing the regional aid map for 2022-2027, Journal of Laws of 2021, item 2422, as amended (Journal of Laws of 2025, item 908).

[5] Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, as amended.

[6] Chancellery of the Prime Minister, Draft act amending the Act on Supporting New Investments (UD391), gov.pl, https://www.gov.pl/web/premier/projekt-ustawy-o-zmianie-ustawy-o-wspieraniu-nowych-inwestycji.