The Polish Investment Zone (PSI) is a government support program for businesses. It offers income tax exemptions, under CIT or PIT, for up to 15 years in exchange for carrying out a new investment. The program covers different industries and scales of activity, from microbusinesses to large companies. Below are the conditions, criteria and step-by-step procedure described in this guide.<\/p>\n
The PSI program is intended for companies planning new investments, such as building new production facilities<\/a><\/strong>, service centers or research and development centers. It supports both projects built from scratch and the expansion of existing facilities. The program covers all company sizes, while small and medium-sized enterprises may benefit from preferential terms, including lower minimum investment values that depend on company size and region.<\/p>\n Although PSI covers a broad range of industries, priority is given to investments in areas such as:<\/p>\n Some industries cannot use PSI, including businesses involved in manufacturing:<\/p>\n and businesses operating in energy, wholesale or retail trade, construction, accommodation, food services and gambling.<\/p>\n Businesses may receive relief from income tax<\/a><\/strong> for up to 15 years. The amount of the exemption depends on the company’s size and the investment location. The less economically developed the region, the greater the support, ranging from 10% to 50% of the investment value.<\/p>\n The PSI program offers support for 10 to 15 years, allowing businesses to plan long-term development with the support of tax exemptions.<\/p>\n The program is available to a broad range of businesses, including small and medium-sized companies and companies in innovative industries.<\/p>\n First, determine whether your business meets the PSI criteria in terms of company size, investment value and other requirements.<\/p>\n PSI is available to businesses of different sizes, and company size affects the minimum investment value:<\/p>\n The investment value and number of jobs the company plans to create will vary depending on its enterprise category.<\/p>\n CIT<\/strong><\/p>\n Under the Corporate Income Tax Act, entities that may benefit from the relief include legal persons, companies in formation and other organizational units without legal personality, subject to certain exceptions:<\/p>\n PIT<\/strong><\/p>\n Under the Personal Income Tax Act, the following may also qualify for the relief:<\/p>\n PSI supports five main types of investment:<\/p>\n Establishing a new facility<\/strong><\/p>\n A new investment involving the establishment of a business or facility means creating an independent entity separated from the taxpayer’s other activities. To qualify as new, the business or facility must be independent and operate separately from the taxpayer’s other business activities. Creating a new business must not be confused with optimization measures that unjustifiably move assets from another part of the taxpayer’s activity to create the appearance of this type of investment.<\/p>\n Increasing the production capacity of an existing facility<\/strong><\/p>\n An existing facility may receive support to expand its production capacity. However, purchasing a single machine or device qualifies only if it significantly increases production efficiency.<\/p>\n Example: If a company buys a new machine or welding robot that makes it possible to increase the number of products manufactured, this increases production capacity. By contrast, buying a machine that only replaces existing equipment, without increasing output, does not qualify as a development investment.<\/em><\/p><\/blockquote>\n Diversifying production<\/strong><\/p>\n Diversification means introducing new products that the facility did not previously manufacture. This requires investment in new fixed assets or technologies that enable production of new products or significant modernization of existing production lines.<\/p>\n Example: Before the project, a company manufactured only solar collectors. After the project, it also begins producing automation systems for solar installations. Introducing a new product type into production is an example of diversification.<\/em><\/p><\/blockquote>\n Changing the production process<\/strong><\/p>\n Eligible investments introduce changes to a facility’s production technology that increase efficiency. One example is moving from a manual to an automated production line.<\/p>\n Example: A production-process change may occur when a company previously manufactured solar collectors on a manual production line and automates the entire production process after completing the project.<\/em><\/p><\/blockquote>\n Acquiring the assets of a closed facility<\/strong><\/p>\n Acquiring the assets of a facility at risk of liquidation may qualify as a new investment, provided that the purchasing business is independent of the seller. The acquisition covers only the facility’s tangible assets and does not include the acquisition of shares or ownership interests.<\/p>\n The investment value from which you can seek support depends on company size and the location of the planned investment. Lower minimums apply to micro and small enterprises, and higher ones to medium-sized and large businesses. The thresholds also vary by region. Requirements are lower in less developed areas to encourage investment there.<\/p>\n On 25 September 2024, new minimum investment outlay thresholds were introduced for businesses seeking a tax exemption under PSI. These rules, based on the announcement of the President of Statistics Poland on average unemployment rates and the Council of Ministers’ regulation on public aid granted to certain businesses for new investments, applied until September 2025. Check the currently applicable thresholds directly with the managers of the Special Economic Zones or on the relevant institutions’ websites, because minimum investment outlays are updated periodically using Statistics Poland data.<\/p>\n Minimum investment outlays in PSI<\/a><\/strong><\/p>\n PSI offers different support terms depending on the region, to promote development in less developed areas.<\/p>\n The investment location also determines the length of the tax exemption period:<\/p>\n To use the relief, a business must maintain the new investment and fixed assets for at least:<\/p>\n Example: If a medium-sized enterprise plans an investment worth PLN 15 million in a region where the relief is 50%, and eligible costs include purchasing machinery and modernizing an existing facility, it may receive PLN 7.5 million in tax exemption, or 50% of PLN 15 million.<\/em><\/p><\/blockquote>\n The more technologically advanced and innovative the investment, the greater the chance of obtaining support.<\/p>\n A detailed description of the PSI qualitative criteria is available in two documents:<\/p>\n Websites of Special Economic Zone managers, such as the Katowice Special Economic Zone<\/a><\/strong> or the Krakow Technology Park<\/a><\/strong>, provide supplementary documents and detailed guidance on qualitative requirements and application procedures.<\/p>\n PSI support covers only so-called eligible costs<\/strong>, meaning expenses that may be included when calculating the tax exemption. They include:<\/p>\n The right to an income tax exemption on income from a new investment depends on incurring eligible costs.<\/p>\n Eligible costs include costs of:<\/p>\n More about eligible costs is available in the 2020 tax explanations<\/a><\/strong>.<\/p>\nPreferred sectors<\/h2>\n
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Industries excluded from the program<\/h2>\n
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Benefits of participating in PSI<\/h2>\n
Income tax exemption (CIT or PIT)<\/h3>\n
Duration of support<\/h3>\n
Program flexibility<\/h3>\n
Step-by-step guide: how to obtain PSI support<\/h2>\n
Step 1: Check whether you qualify for PSI<\/h3>\n
Company size<\/h4>\n
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Entities eligible for a tax exemption<\/h4>\n
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Type of investment<\/h4>\n
Step 2: Assess the minimum investment value<\/h3>\n
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Where to find more information about minimum PSI investment outlays<\/h4>\n
Step 3: Check the investment location<\/h3>\n
Support intensity by region<\/h4>\n
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Tax exemption period<\/h4>\n
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Relief amount by location and company size<\/h4>\n
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Conditions for using the tax exemption<\/h4>\n
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Step 4: Assess whether your investment meets the qualitative criteria<\/h3>\n
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Step 5: Identify eligible costs<\/h3>\n
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Catalogue of eligible costs under Section 8 of the WNI regulation<\/h4>\n
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Step 6: Apply for a support decision<\/h3>\n