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Special Economic Zones - a paradise for taxpayers or areas of economic development?

Special Economic Zones combine investor needs with the needs of individual regions.

Special Economic Zones combine investor needs with the needs of individual regions.

On the one hand, They affect the economic development of Poland, with second are administratively separated areas where foreign investors can avoid taxation.

The zones are to operate in Poland to 2026 And...

Special Economic Zones combine investor needs with the needs of individual regions. On the one hand, They affect the economic development of Poland, with second are administratively separated areas where foreign investors can avoid taxation. The zones are to operate in Poland to 2026 and their opinions are divided.

Currently operating in Poland fourteen Special Economic Zones (SEZs). Foreign investors can conduct business in their territory while avoiding paying income tax. Many experts are critical of such reliefs.

According to Jeremy Mordasevich, Polish Confederation Lewiatan SEZs in the past have fulfilled their function as they have attracted new foreign companies. At present, however, their position is better compared to companies that operate outside the zones. In his opinion, this is a form of unfair competition.

SEZs were created in regions with a very high unemployment rate. Today, the problem is not the number of jobs, but the quality of jobs. As Jeremi Mordasewicz adds "Poland should move from promoting the number of jobs to premiuming their quality."

Prof. Elżbieta Mączyńska, the head of the Polish Economic Society, is also critical of SEZ. It believes that, under the influence of relief to foreign producers, domestic production will disappear, resulting in the collapse of small family businesses and people losing their jobs. The costs for their later payments are borne by all taxpayers. Prof. Mączyńska believes that we do not keep a full account, i.e. one that would take into account both costs and externalities related to SEZs.

Another expert who claims that tax breaks in special economic zones should be avoided is Stanisław Szultka from the Institute for Market Economy Research. In his opinion, the most effective zones are located near large agglomerations. Nowadays, unemployment is not always the best place. The eastern part of Poland is an example.

However, the administration is trying to defend the zones. According to the Minister of Economy Janusz Piechociński, there are companies operating in the SEZ which in worse economic conditions will not limit employment and the times when foreign companies invested in zones only because of tax relief - have passed.

The Deputy Prime Minister also pointed out that companies with foreign capital are increasingly investing in Poland without entering the SEZ, despite this possibility. Why? Because they're afraid of zoning obligations, they're not sure they can keep their jobs. Further, Piechciński emphasizes that foreign capital is 40% Polish exports, and thanks to SEZ new jobs are created.

Sławomir Majman - Head of the Polish Foreign Investment Information Agency praises special economic zones. As an argument, we managed to reindustrialise the surroundings of Wałbrzych or Łódź thanks to the zones. These were regions where in years 90. there were no jobs because traditional industries collapsed.

It also adds that in the European Union zones are being created precisely to develop new industrial tissues. In his opinion, the State must not be deprived of the mechanism of attracting both Polish and foreign investors, and there is no shortage of places for highly qualified staff in the zones.

It points to the technologically developed automotive industry, business services centres or research centres.

The SEZ has undoubtedly contributed to the economic development of Poland and to improving the conditions of functioning of companies. Unfortunately, the position of companies operating in these zones is much better than that of companies located in other areas of the state. So far, we have only a promise from the Ministry of Economy, which announces changes and promises to help small and medium-sized enterprises.

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