Establishing a limited company (spółka z ograniczoną odpowiedzialnością or sp. z o.o.) in Poland offers several tax benefits for entrepreneurs and investors. Some of the key advantages of setting up a limited company in Poland include:
- Limited Liability: Shareholders’ liability in a limited company is generally limited to their capital contributions. This means that their personal assets are protected from the company’s debts and liabilities, providing a degree of financial security.
- Attractive for Foreign Investors: Poland is an attractive destination for foreign investors due to its strategic location in Europe, stable economy, and membership in the European Union. Establishing a limited company can facilitate foreign investment in Poland.
- Tax Benefits: Poland offers a competitive corporate income tax rate of 19%, which can be advantageous for businesses. Additionally, if your revenues earned in the tax year did not exceed the net amount of 2 million euro, corporate income tax is reduced to 9% which is very competitive compared to other EU countries.
In the video below, I explain what the different taxes are when you intend to invest in real estate in Poland:
- VAT
- Tax on rental income
- Tax on capital gains
- The difference between investing as a private person and investing as a limited company
