POLAND - A SAFE HEAVEN FOR INVESTOR
POLAND SEEN BY INVESTOR
With the European economy still suffering from the fallout
of the 2011 euro crisis, the question is where to find its bright spots of business opportunity. Poland is one of these.
For several years now Poland has known how to attract its fair share of FDI in Europe and in the CEE region in particular. Poland, with its steady economic growth, remained an attractive market for investment. According to the Financial Times, Poland held sixth place in Europe and second in the CEE region (after Russia) in terms of attractiveness for such projects.
According to UNCTAD’s World Investment Prospects Survey 2013, which polled executives of transnational companies, Poland was placed second in terms of new greenfield projects in the entire European Union. Furthermore, in its annual survey questioning investors about the most attractive countries to invest in during the 2013-2015 period, Poland was ranked fourth in Europe and the fourteenth in the world.
The projections are optimistic as well. According to EY’s European Attractiveness Survey, Poland recorded the highest increase of foreign investment in Europe and the highest number of jobs created by investors. According to surveyed investors, it is the most attractive location for investment in Central and Eastern Europe.
The “The FDI Report 2013” report by Financial Times also recognizes Poland as a leader of growth – next to Spain, Poland is the only country in Europe which experienced positive growth in Foreign Direct Investments (FDI) last year.
INVESTING IN POLAND
FEW FACTS ABOUT INVESTING IN POLAND
- Investing in real estate, land (with some exception to farm land till 2016) by the foreigner from EU couldn't be easier. There are no restriction. Property can be purchased privately, by the company or SPV.
- What's very important Poland is a country of almost 99% freehold ownership. No leaseholds, landlords, owners dictating what you can or can not do with property. YOU OWN LAND OR PROPERTY FOR INFINITE TIME!
- Opening a company or purchasing established one it's an straightforward operation.
- Mortgages for foreigners are accepted by banks which can finance building process (70-80% LTV) effectively lowering cash injection into the project.
- In contrast to UK property market purchasing a land in Poland is almost as easy as grabbing a milk from grocery shop. There's abundance of building plots where only rough planning guidance and your imagination restrict you from building a house, block of flats, office block or shared retail/living/office centre.
- Growing demand for flats and houses. Larger cities like Wroclaw, Poznan, Cracow and Warsaw act like magnets for young professionals from surrounding boroughs. Just after 6 months of constant employment they can purchase property on 90-100% LTV mortgage. Which is very common.
- Flat tax which is charged at 19% with no top earners limits.
- Only 2 hours flight from London Airports (Heathrow, Stansted, Luton, Gatwick) to most of the Polish cities.
- Ideal to have a family home and run a business - Poland acting as a IT, Financial service hub, Eastern Europe connection to Western Europe, much cheaper very well educated labour force for UK/USA corporations.
- Some of the Brands already trusted stable situation in Poland (factories, tax exempt offices) IBM, Dell, Motorola, AIG, CitiGroup, Mars, Cargill, Danone, EDF, Toyota, Michelin, Opel/Vauxhal, General Motors, Henkel, GlaxoSmithKline, Henri Lloyd, HSBC, Rolls-Royce, Tesco plus hundreds more.
- In the 2008 crisis Poland was the only EU country to not have a negative GDP!
In attachment below a downloadable document case showing facts for foreign investors combined by Price Waterhouse Copers, Randstan, Bank PKO, CBRE, Dentons and National Agency for Foreign Investments.
This document explains in detail why one of the largest cities in Poland - Wroclaw is a ideal place to start your next investment.
With the help of Frank Knight and National Agency for Foreign Investments.