All of Poland is a special economic zone

There are fourteen Special Economic Zones (SEZs) in Poland, which attract investors by offering numerous benefits. The first one was established in 1995 in Mielec in order to provide a stimulus to the region affected by high unemployment. Two years later, another SEZ was created in Tarnobrzeg - both are managed by the Industrial Development Agency (Agencja Rozwoju Przemysłu S.A. - ARP S.A).

SEZs are officially designated areas providing various incentives for businesses, including PIT or CIT exemptions, and in some territorial units property tax exemptions as well. Furthermore, SEZs have good technological infrastructures, plots of land with utility infrastructure as well as production halls and warehouse facilities. Also of key importance is the support provided by the zone manager (ARP S.A) at every stage of the investment project. The SEZs, defined as specially designated areas, will maintain this status until the end of 2026, and the deductions resulting from permits for investment projects in their territory will be applicable until that time.

The concept of the SEZ proved attractive, but the territorial restrictions and costs associated with relocating production to the zone constituted a barrier for smaller companies. The Polish Investment Zone (PIZ), based on the idea of SEZs, was introduced by the Act of 10 May 2018 on supporting new investments; as a result the related laws have been extended to cover the whole country. Hence, the PIZ has replaced the SEZs; as a result it is no longer possible to obtain new investment permits in the frames the SEZ. This means that until the end of 2026, in Poland there are two systems related to tax deductions for investment projects, under the Special Economic Zones and under the Polish Investment Zone. The so-called Decision on the Support (Decyzja o wsparciu - DoW) in the frames of the PIZ, currently issued by the entities managing the fourteen SEZs, is an equivalent of an investment permit. The procedure for acquiring a DoW is simpler and faster, which makes it easier for entrepreneurs to benefit from the available reliefs. The DoWs are issued for 10, 12 or 15 years, depending on the availability of public support in a specific region. Under this program, businesses can get CIT or PIT exemptions of up to 70% of the value of the project. The Podkarpackie Voivodeship is one of the regions with the highest level and duration of support.

In order to obtain a DoW, a business entity must meet certain criteria, and report R&D investments, a potential for creating new jobs and for increasing production capacity. Initially, large companies constituted a majority of those benefiting from tax exemptions, but now nearly 70% of the decisions are issued to small and medium-sized companies.

SEZ EURO-PARK MIELEC, a pioneering project in Poland, over the years has produced excellent results, becoming an effective tool for economic growth. Since 1995, the SEZ has issued more than 600 investment permits and decisions on support, attracting more than 260 companies. Investments have exceeded 20.5 billion PLN, as a result of which over 50,000 jobs have been created in the subzones across five voivodeships. Permits issued until 2018 will expire at the end of 2026, but the decisions on support under the PIZ will remain valid. The entity managing the zone issues such decisions for companies operating in three cities with powiat rights (Rzeszów, Krosno, Lublin) and 20 administrative districts in the Podkarpackie and Lubelskie voivodeships.

EURO-PARK Mielec, being a major economic entity, comprises businesses of various specialisations, most importantly related to aerospace, automotive, wood processing, metal processing and pharmaceutical industries. The zone also provides support for innovative companies and startups; these can operate in the Podkarpackie Science and Technology Park AEROPOLIS, where they use office areas, production halls, the Technology Incubator and Research Laboratories.

EURO-PARK WISŁOSAN, established in 1997 in Tarnobrzeg, has expanded to include subzones in six voivodeships. The last business permits under the SEZ were issued before August 2018. After that date, decisions on support under the PSI have been issued, offering the same tax breaks. The entity managing EURO-PARK WISŁOSAN issues such documents for companies operating in 28 administrative districts and seven cities with powiat rights (Radom, Tarnobrzeg, Zamość, Chełm, Siedlce, Biała Podlaska, Przemyśl) in the Podkarpackie, Lubelskie, Mazowieckie and Dolnośląskie voivodeships.

Both zones offer locations with complete infrastructures and access roads, production facilities for lease as well as halls and warehouses custom-built for the investors. Between 1997 and 2024, ARP S.A. issued more than 500 permits and decisions on support for businesses operating e.g. in automotive (including electromobility), furniture, food, plastics and metal processing industries. There are more than 200 companies operating within the zone, employing more than 36,000 people, with investments exceeding 23.5 billion PLN.

EURO-PARK MIELEC and EURO-PARK WISŁOSAN offer public support, i.e., exemption from income tax (CIT/PIT) at the highest level allowed in the European Union. Depending on the size of the company, the tax deductions range from 50% to 70% (50% for large companies, 60% for medium-sized companies, 70% for small and micro enterprises). Decisions on support are valid for up to 15 years.

ARP S.A. continues to invest in new production and warehouse facilities as a result of which the economic zones in the Podkarpackie have highly attractive options for entrepreneurs. The Special Economic Zones and the Polish Investment Zone, the program that replaced SEZs, are key tools for supporting economic development in Poland by providing the investors with benefits, advanced infrastructure and administrative support.