Offshore Poland

Features of taxation of offshore companies in Poland

Classical offshore has little to do with Poland also because there are no significant differences between the taxation of resident companies of the country and firms owned by non-residents. In fact, any organization that has been registered in accordance with local law or owns a registered office within the country is considered as a tax resident in Poland. At the same time, there are no restrictions on the registration of legal business here for foreign individuals and legal entities.

Among the main taxes that are imposed on all offshore companies in Poland are the following:

• Profit tax of 19%.
• VAT - value added tax. The base rate of this tax is 23%, however, reduced rates are set for certain types of products and services. So, the VAT rate for medicines, hotel services and passenger transportation is 8%. The VAT rate on groceries, the sale of ready-made food and plants is set at 5%. Medical services, a number of computer devices for the blind, as well as educational services that are financed from public sources, are not subject to VAT. VAT is not established for the export and import of goods and services in most cases.
• Excise tax, which applies to electricity, petroleum products, tobacco products, alcohol, as well as cars which engine capacity exceeds 2,000 cubic centimeters.
• It is also worth noting that there are more than ten FEZs (free economic zones) in Poland today. An investor who has decided to register an offshore company in one of these zones can expect certain tax incentives for up to 10 years.

Form of offshore organization in Poland

The most common type of firm for offshore business in Poland is a limited liability company, or LLC. It can be formed even by a non-resident of the state (subject to the availability of a passport). The minimum authorized capital for the establishment of an LLC in Poland is 5000 PLN.

A corporate account is opened in one of the Polish banks, but there are no restrictions on opening accounts in banks of other EU countries. A Member of the Board of Polish LLC receives a work Schengen visa on an “automatic” basis. This form of business organization is the most convenient from the point of view of the subsequent interaction with the clientele, foreign banks and partners. However, it is theoretically possible to register firms of other type in Poland:

• partnership;
• joint-stock company;
• company with sole owner.

Like many other recognized and unofficial offshore zones, Poland has introduced mandatory obtaining of licenses for companies operating in the financial, banking, pension or insurance sectors.

Advantages of opening offshore in Poland

• Significant simplification of work with any firms in the EU.
• Real prospect of obtaining a residence permit, then permanent residence and, finally, European citizenship.
• Lack of any currency restrictions and the possibility of financing an incorporated business from external sources (subject to certain conditions).
• Excellent geographical location of the country and low VAT rates on import/export of products, allowing to organize profitable import or export of goods.
• Relatively inexpensive labor, the closeness of culture, language and mentality.
• A stable economy, successfully overcoming any crises and steadily developing over the decades.

Corporate law of Poland