Despite certain investment barriers, today Poland is one of the best investment locations in Europe. That is supported by the latest Ernst&Young Attractiveness Survey 2008 which ranks Poland in first place in Europe among locations considered for new investment.
According to preliminary data from the National Bank of Poland in 2007, the components of FDI inflows according to type of business is as follows:
- 20.0% manufacturing,
- 19.8% servicing property, IT, training, rental of equipment and other services associated with conducting business,
- 15.3% financial services,
- 11.9% trade and repairs,
- 9.4% transport, warehousing and communications,
- 23.6% other.

Poland boasts several important advantages which make it attractive to foreign investors. Firstly, Poles are workers. In comparison with the “old European Union” we are a relatively young society and increasingly better educated. Currently, every second young Pole 19-24 years of age is a student, and every year nearly 400,000 graduate from universities and colleges. Additionally, the level of education is high, especially in technical fields. Polish IT specialists are respected around the world. Poles are productive and very creative, that is valued by foreign companies. Secondly, our geographical location is also considered to be an asset. Due to increasing transport costs caused by increasing oil prices investors are more interested in projects located close to their markets. Locating projects in Poland guarantees speedy transport of goods both to EU countries, as well as the Eastern markets.

Polish preferences regarding the type of foreign investment:

The priority sectors attracting new FDI continue to be: BPO (Business Process Outsourcing) centres, automotive, electronics and research and development.
Today, Poland is competing with neighbouring countries to gain investors through qualified workers, access to research and development and educational institutions. In the near future it may become common to transfer that part of production which is based on cheap labour to those countries with lower labour costs. It can be expected that a greater number of projects will be based on new technologies.
In the case of projects serviced by PAIIZ most investors come from USA, Japan, China, India and Germany.

Polish investment market opportunities – level of state aid to investors and possible limitations, special economic zones:

The level of state aid is restricted by EU legislation, which is introducing a general ban on state aid.
That is associated with the principle of equal opportunity within the EU, as beneficiaries of state assistance are in a privileged situation in the market place.
The EU ban refers only to such state aid which influences the internal EU exchange of trade, and according to the de minimis rule such influence has to be noticeable.

However, there are two groups of exceptions: aid regulated by law and confirmed by the European Commission (regional assistance: provided in areas where the level of economic development is lower than the EU average and is earmarked for new investments or for creating new work places; horizontal: granted for research and development projects, projects associated with environment protection activities, development of small and medium sized enterprises and projects relating to employer training and employment; and industry sectors: granted exclusively to specific economic sectors, e.g. metallurgy, ship building sector, coal mining).

Of course, apart from a few exceptions (for example de minimis assistance, if within three consecutive years the value of aid does not exceed 200,000 Euros) the aid provided needs to be reported to the EC, which approves its provision. The notification applies both to project support funds, as well as individual assistance projects (such as direct support from the budget within the support system for large projects).

State aid cannot exceed the maximum level of intensity described in the regional assistance map for 2007-2013. A condition of being granted the state aid is the requirement to maintain the project/new job places for 5 years from its completion (SMEs for 3 years).
Both EU regulations, as well as Polish regulations based on them, state explicitly that it is possible to cumulate regional aid from various sources and provided in various forms, on the condition that it does not exceed stated aid limits (regional assistance map).

A condition of being granted regional aid in any form and from any source is that the investment project for which a businessman is seeking support cannot have been started.
A businessman can receive financial support in many forms. The most attractive form of state aid is subsidies (mainly granted in Poland within support programs from EU structural funds) and they are tax exempt.
Support given to new investment projects and business activity conducted within the special economic zones provides for exemption in income tax, while municipal communes (gmina) can provide support in the form of real estate tax exemptions.
Regional support includes real estate tax exemptions (based on regulations determined by individual district/municipal councils and income tax exemption in SEZ for new investment projects or creating new work places.

It is worth mentioning the recent amendment to the SEZ Act (30 May 2008 Regulation in respect of amendments to the Act on special economic zones) which increased zone areas to 20,000 ha. (from 12,000 ha.). It was signed by the President on 19 June.
Assistance based on the system of support for large investment projects (currently work is in progress to prepare a new system of support):
Aid is granted on the basis of long-term programs adopted in the form of a resolution by the Government, and an agreement between the Ministry of Economy and the investor. The aid is granted for a new investment project or to create new work places. It is individual aid and is required to be reported to EC.
Preferred industries for support are: automotive and aircraft industries, biotechnologies, BPO, R&D, IT and electronics.

State aid for foreign investors (PAIiIZ, local organisations).

PAIiIZ provides assistance to investors at every stage of the investment project, we also provide post-investment service, that is we try to assist investors, who have already invested in Poland to solve problems they may come across.

Our services include:
- information (legal, methods of conducting business in Poland, data on individual industry sectors, markets, etc),
- databank of properties for investment projects,
- inspections with investors to recommended locations,
- post-investment care.

PAIiIZ activities are supported by a network of regional Investor Assistance Centres. IAC were established with close cooperation with province chairmen responsible for regional promotion and are located within chairmen’s offices and agency for regional development.
The main goal of Investor Assistance Centres is to provide complex services to investors at the province level. Centres cooperate with PAIiIZ in servicing large investment projects and provide independent services for those investors, who contact them directly.
Additionally, investors are assisted by business service divisions/teams, which are set up in some city offices.

Assistance from SEZ (using Słupsk SEZ as an example, source Pomorska Agencja Rozwoju Regionalnego S.A.) includes:

- assistance in the construction processes,
- assistance to obtain permits from Ministry of Interior & Administration for purchase of land by foreigners,
- contact with local builders, friendly investment climate,
- assistance in cooperation with local banks,
- assistance in preparation of submissions for EU subsidies,
- assistance in finding workers,
- organising training for staff.