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o f M a z o v i aI N V E S T O R ’ S G U I D E B O O K

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Mazovia Development Agency Plc

Mazovia Development Agency Plc is a company of the Mazovia Region self-government

unit, which carries out projects of an innovative character that support regional development.

Mazovia Development Agency Plc concentrates and coordinates initiatives, projects and

competitions which support an increase in activity and enterprise in the Mazovia Region. The

Agency undertakes numerous actions with the goal to establish proper supporting tools and

instruments to achieve the intended results. The company’s target is to reach the position of a

leader, supporting regional and local development in the Mazovia Region.

Warsaw

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Investor and Exporter Service Centre

Investor and Exporter Service Centre, acting within the structure of Mazovia Development

Agency Plc supports investors and exporters, and undertakes activities with the goal of com-

mercially promoting the Mazovia Region nationwide and internationally. Investor and Exporter

Service Centre is the place of first contact for foreign entrepreneurs who are interested in

investing in the region, as well as for Mazovian entrepreneurs, interested in export activities.

• WE HELP

National and international investors

• WE SUPPORT

Mazovian entrepreneurs

• WE PROMOTE

the economic potential of Mazovia

Main tasks of Investor and Exporter Service Centre:

INVESTOR ASSISTANCE

• Servicing of national and foreign investors,

interested in undertaking economic activi-

ties in the Mazovia Region

• Providing information on economic and legal

investing conditions in the Mazovia Region

• Assistance in selection of investment loca-

tions

• Creation and promotion of the Mazovian

investment offer during fairs, conferences,

seminars, workshops as well as other na-

tional and international affairs of an eco-

nomic character

Mazovia Development Agency Plc

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ECONOMIC PROMOTION

SUPPORTING EXPORT

• Realization of promotional projects to the benefit of regional economy

• Organization and participation in national and international economic affairs, in col-

laboration with the entities of local government units and institutions of the business

environment

• Providing of economic information about the

rules of economic activity on the given for-

eign market

• Supporting Mazovian enterprises by use of

export-building tools

• Assistance in establishing business relations

with foreign companies

• Organization and handling of economic mis-

sions

• Creation and promotion of the Mazovian ex-

port offer during fairs, conferences, semi-

nars, workshops as well as other national

and international affairs of an economic

character

• Organization of workshops within the scope

of foreign trade MA

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Rank CountryNumber of projects Number of

jobs 20112010 2011 Share of FDI 2011

1 United Kingdom 728 679 17% 29 888

2 Germany 560 597 15% 17 276

3 France 562 540 14% 13 164

4 Spain 169 273 7% 9 205

5 Netherlands 115 170 4% 2 229

6 Belgium 159 153 4% 3 599

7 Russia 201 128 3% 8 362

8 Poland 143 121 3% 7 838

9 Ireland 114 106 3% 5 373

10 Switzerland 90 99 3% 1 546

Others 916 1 040 27% 59 344

Total 3 757 3 906 100% 157 824

Ernst & Young’s 2012 European attractiveness survey

Ernst & Young’s 2012 European attractiveness survey places Poland in 8th place with

regard to the inflow of direct foreign investments. It is also worth pointing out that

Poland was the only country from Central and Eastern Europe that made to the list of

top 10 European countries for FDI. What is more, 10% of investors see it as the most

attractive country in Europe, a score placing it second only to Germany.

The top 10 European countries for FDI

Poland is a very attractive place for investors and a lucrative ready market.

GUIDEBOOK of Mazovia

Маzovia

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Mazovia, located in the central-east part of the country, is the biggest and most populous

(over 5 Mill. inhabitants) region of Poland. Moreover, it’s first in respect of economic develop-

ment and business activity. The biggest part of the gross domestic product (GDP) is produced

in the Mazovia Region, amounting to almost 22% of the total income of the country. Among all

foreign investments in Poland, 23% are located in the Mazovia Region.

Mazovia fulfills the function of an economic leader among the Polish Regions. The Region’s

assets are both investment attractiveness, as well as economic potential. Mazovia is also the

leading region with regard to the quality of work resources.

Warsaw

THIS is Mazovia

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Blue Tower Plaza, Warsaw

Warsaw is the biggest and most important centre of science, culture, business and poli-

tics. The fast developing city tempts with the possibility of a lightning career and develop-

ment of interests. The capital offers the greatest number of theaters, exhibitions, concerts

and universities. The metropolis attracts foreign investors constructing financial centres,

hotels and hypermarkets. The image of Warsaw, however, should not cloud the very diverse

social and economic situation in other cities and districts of the Region, which is illustrated

by indexes characterizing the amount of GDP per 1 inhabitant, the income level of house-

holds, employment structure and low unemployment.

Almost all industry sectors are present in the region (except mining industry, shipyards and

coke engineering), but there is no dominating sector. The biggest centre is Warsaw, which to-

gether with the surrounding towns forms

a kind of industry district. The period of

transformation of Poland’s system of gov-

ernment brought rather visible tenden-

cies for a decentralization of the capital’s

industry. The liquidation of big plants lo-

cated in great industry quarters was ac-

companied by the tendency to locate nu-

merous small plants on the city outskirts,

where no industry has been located so

far or it was only to a small extent. In

the metropolitan agglomeration, the fol-

lowing industry sectors, among others,

have developed: motor transport, elec-

trical engineering, electronics, chemical

(pharmaceuticals, cosmetics, and plas-

tics), food industry, energy, metallurgy,

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RADOM

SIEDLCEWARSAW

OSTROŁĘKA

PŁOCKMazovia

CIECHANÓW

Radom

The economic supply base of Radom with its 223

thousand inhabitants, is made up of 24.5 thousand

companies, around which operate numerous

business-supporting companies, economic self-

regulatory organizations, banks, insurance companies

and leasing companies. The city is open for any forms

of economic cooperation, focused on the development

of industry, construction, services and commerce. The

main asset speaking in favour of Radom as a location

for business is the relatively small distance (100

km) from the capital and accessibility of skilled workers (the unemployment rate in 2011:

Radom – 21.4%, Radom district – 29.9%). The town is the second biggest academic centre

in the Region, just after Warsaw, where the educational profile is adapted to the demands of

the labour market. The following industry sectors have developed in Radom: metallurgy (e.g.

GGG, Precision Machine Parts, Fabryka Łączników, Łucznik), food industry (Rolmlecz), tobacco

(Altadis), construction materials (Jadar), cosmetics (Global Cosmed) as well as telemarketing

centres. The sub-region hosts the electric power station „Kozienice” in Świerże Górne, the

brewery in Warka and the fruitprocessing plant in Przysucha.

THIS is Mazovia

Radom, Zbyszko Company Sp. z o.o.

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RADOM

SIEDLCEWARSAW

OSTROŁĘKA

PŁOCKMazovia

CIECHANÓW

15

PłockPłock is an economic centre with a very diversified branch structure, although it would

not be an exaggeration to say that the economy of this town of 125 thousand inhabitants

is dominated by the petrochemical and refinery industry, since this is the town of one of the

biggest companies in Central and Eastern Europe – Polski Koncern Naftowy Orlen S.A. The

petrochemical giant cooperates logistically with many companies in the Płock region, e.g. with

Przedsiębiorstwo Eksploatacji Rurociągów Naftowych [Company for Oil Pipelines Operation] or

Basell Orlen Polyolefins – a leader of the Polish polyethylene and polypropylene market. The food

industry is represented, among others, by the meat processing plants in Płock and Umienin,

Płockie Zakłady Drobiarskie „Sadrob” [Poultry Processing Plant Płock], HERO – producer of

jams, candied fruits, and juices, the brewery and dairy in Sierpc. The mechanical industry is

represented by the agricultural machine plant CNH Polska, and the clothing industry by the

plant of the American jeans king Lévi-Strauss. The river shipyards Centromost and Mostostal

Płock S.A., are experiencing their boom period. The unemployment rate in Płock district is

20.6% (2011). The academic environment is made up of five higher education institutions,

educating chemical technology engineers, machine construction engineers and construction

engineers.

Płock, Oil Refinery PKN Orlen S.A., photo from PKN Orlen S.A. archive

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THIS is Mazovia

OstrołękaThe biggest town of the north-eastern part of Mazovia is Ostrołęka, with its 53 thousand inhabitants.

In five local higher education facilities young inhabitants of Ostrołęka are studying e.g. economics,

public administration or health science. The economic structure of the city and the district is based

one the wood and paper industry (Stora Enso Poland) energy (power plant complex in Ostrołęka),

construction materials (Xella Ytong) as well as the agricultural and food sector. The Ostrołęka district

is a national potentate in the production of cellulose, paper and cardboards. Companies producing

food are locatedin Ostrołęka (Pekpol, Spółdzielnia Mleczarska [Milk Co-Operative], in Łysem (JBB),

in Ostrów Mazowiecka (Kruger) and in Baranów (Hochland). Two enterprises, that is Starglass and

PST, specialize in the production of heat-insulated windows. Furthemore, the district is an esteemed

producer of furniture, clothing and finishing materials for construction purposes. With regard to

numbers, small and middle-size companies are dominant. The unemployment rate is 15.2% in

Ostrołęka and 18.4% in the whole district (2011).

SiedlceSiedlce is located 90 km from Warsaw, and 117 km from the border crossing with Belarus in

Terespol. Its location on this very active route constitutes one of the assets of this city. Siedlce is

also the stop for international express trains Berlin – Warsaw – Minsk – Moscow. The city is well

connected both with the capital, as with the eastern border of Poland, which is simultaneously the

border of the European Union. It is believed that Siedlce is a city of good perspectives. Almost 20%

out of 76 thousand inhabitants are in pre-working age and 67% are in working age. The favourable

age structure guarantees the stability of employees on the labour market, who are also gaining

professional knowledge in local higher education institutions (i.e. Akademia Podlaska, Financeand

Management Academy). A visible example of interest shown by investors are the new plants of

such companies as Stadler Rail (rail vehicles) or

Valmont Industries (steel pillars and columns).

The company Teleperformance Polska opened

a telemarketing centre in Siedlce. Among the

biggest employers in Siedlce there is also

Polimex-Mostostal (steel constructions, general

construction) and Drosed S.A. (poultry processing

and products). Siedlce is also the home town of

slicing machines (Fenes S.A.) as well as car spare

parts and components (ZPP Auto Sp. z o.o.). The

agriculture of the sub-region delivers stock to dairy

plants in Siedlce and Węgrowo (Hochland), feed

production plants (Cargill) and distillery, as well

as the meat processing plant in Sokołów Podlaski.

Stadler Rail factory in Siedlce, the producer of rail-way vehicles, which produced FLIRT trains that run

in Mazovia and Silesia.

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Ciechanów

Ciechanów has about 45 thousand inhabitants. It is an administrative, service and education

centre for the surrounding agricultural communes and constitutes, together with Płock, one of

the sub-regions of Mazovia. The town received prizes and honourable mentions of international

character within the scope of sustainable development, including the field of ecology and

environmental protection. Ciechanów systematically invests in communal infrastructure

(modern sewage treatment plant, secure storage). There are 500 individual farms within the

borders of the city (cereals, vegetables in greenhouses). Among the assets of Ciechanów, to

name a few, are: proper number of qualified employees (the unemployment rate for the town

and district in 2011 was 17.2%), good medical personnel, a developed recreation and sports

base, as well as an educational base with interesting and diversified faculties (State Higher

School of Vocational Education, Higher School of Management, Higher School of Business and

Management). An unquestionable asset is also the visibly separated industry quarter, with full

technical territorial development, as well as the stable industry branch structure in Ciechanów:

food sector (Cedrob, Ciechanów Brewery, Dairying Cooperative), paper sector (Delitissue),

printing sector (Bauer), clothing (Marconi), furniture (Cool Mebel), mechanical (Metaltech,

Luka).

Ciechanów DHL Express Poland Sp. z o.o.

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M. ST. WARSZAWA

WARSZAWSKI WSCHODNIWARSZAWSKI ZACHODNI

RADOMSKI

OSTROŁĘCKO-SIEDLECKICIECHANOWSKO-PŁOCKI

A

THIS is Mazovia

Mazovia sub-regions

The unemployment rate in sub-regions in 2011. (source: www.stat.gov.pl)

Unemployment rate Number of unemployed persons

Number of inhabitantsUnemployment rate Number of unemployed

personsNumber of inhabitants

Ciechanowsko--Płocki

16.8% 42 833 631 010

Ostłołęcko--Siedlecki

15.2% 46 459 758 056

Radomski 23.5% 60 088 624 600

Warsawsurroundings

9.95% 55 746 1 563 447

Warszawa 3.8% 41 613 1 708 491

1918

M. ST. WARSZAWA

WARSZAWSKI WSCHODNIWARSZAWSKI ZACHODNI

RADOMSKI

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EDUCATION

Higher education

The highest intellectual potential of Mazovia is illustrated by several state and private high schools, with a total of 307 thousand of students.

The region also hosts the biggest Polish universi-ty and the biggest technical university. The Univer-sity of Warsaw educates 56 thousand students, the Warsaw University of Technology - 36 thousand. A number of other educational institutions are also rightfully renowned: Warsaw School of Economics (16 thousand students), the Warsaw University of Life Sciences (23 thousand students) and the Medi-cal University of Warsaw (9 thousand students). The capital also hosts the Academy of Fine Arts, Academy of Music, and Christian Academy of The-ology, Main School of Fire Services and the Univer-sity of Cardinal S. Wyszyński. Besides Warsaw, the higher education sector is developing in all bigger towns of the Region.

A big educational centre in terms of post-middle school vocational education is the munici-pality of Warsaw and the Warsaw sub-region. Basic vocational schools, technical schools and profiled postsecondary schools educate youth in several professions and specializations. Besides IT specialists, electronic engineers, electricians, construction staff (masons, carpenters,

steel fixers, welders), mechanics, typographers, hotel staff, gastronomy staff, many young peo-ple are also interested in professions within the branches of: clothing and hairdressing, geology-geodesy-road engineering, aviation, gardening, chemical and photochemical science as well as many others. The schools are open to technologi-cal novelties and exchange of experiences. For example, the Warsaw Technical School of Con-struction cooperates with the Warsaw University of Technology, the gastronomy and hotel schools implement international standards through coop-eration with foreign partners, among things.

It’s worth to say that the development of voca-tional education has become one of the priorities for the Ministry of National Education.

University of Warsaw

University of Warsaw Library

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The Radom sub-region hosts 9 higher schools. It is the only place in Poland where one can

study technology of leather and electronics of railway transport, as well as technological auto-

mation processes. The Bachelor degree can be acquired e.g. at the following schools: Higher

School of Social and Technical Sciences, Private Higher School of Environmental Protection,

Higher School of Finance and Banking, Higher School of Economics and the Higher School of

Radom. Humanistic faculties are predominant at the College of the Maria Curie-Skłodowska

University. This makes Radom the second biggest academic centre, after Warsaw, in the Ma-

zovia Region. The secondary school sector in Radom is represented by several units, educat-

ing in the fields of construction, agricultural, clothing, electronics and automotive professions,

among others.

The sub-region Ostrołęka-Siedlce hosts five higher education institutions educating 16

thousand people. At four faculties of the University of Natural and Humanistic Sciences, 11

thousand students study to become: IT specialists, bioengineers, agronomist and chemists,

among others. The University has the right to confer scientific titles within the field of agron-

omy as well as chemical and zoo-technical science. Siedlce is also the location of the Higher

School of Finance and Management, as well as the Health Science Department of the Medical

University of Warsaw. Ostrołęka offers higher education at the Economical College of the Uni-

versity of Łódź, the Higher School of Economy and Social Science, Health Science Department

of the Medical University of Warsaw and the Higher School of Public Administration. Numer-

ous secondary schools of the sub-region, including technical secondary schools, profiled high

schools, basic vocational schools (IT-specialists, gastronomy staff, mechanics) prepare young

people for professions that suit to the economy.

The Ciechanów-Płock sub-region has 5 higher education institutions and 11 thousand

students. The most prestigious higher school in Płock is the School for Technical and Social

Science of the Warsaw University of Technology, offering, among others, studies at the facul-

ties of Construction, Mechanics and Petrochemistry. The offer of upper secondary and postsec-

ondary education is very diverse. Young people of the region study in vocational construction

schools, as well as postsecondary IT and medical schools. MA

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WARSAW

TRANSPORT infrastructure

The metropolitan functions of Warsaw and the almost central location of the Region in Poland influenced the establishment of the commuting system within the Region.

Warsaw is a countrywide transport centre in road, railway and air traffic. Many funds, coming also

from the European Union, are invested in the construction and development of road infrastructure.

Main national roads and international roads leading through Poland, lead to Warsaw and through the

Mazovia Region. The distances between the capital and the main towns of the Mazovia Region are: to

Ciechanów – 100 km, Ostrołęka – 115 km, Płock – 111 km, Radom – 102 km and Siedlce – 89 km.

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WARSAW

Warsaw Chopin Airport

Chopin Airport in Warsaw is the biggest domestic and international airport in Poland. One of its advantages is a short distance to the centre of Warsaw (10 km). The Chopin Airport operates flights to over a dozen cities in Poland and a few dozen cities in Europe, Asia and North America. It handles about 87% of foreign and about 43% of domestic passenger air traffic. At present Warsaw has over 80 regular connections with airports across Poland and worldwide. The number of charter flights is increasing. In 2010 the Warsaw airport handled over 9 million passengers. There is a VIP Aviation civil terminal for private and corporate flight passengers and crews. The opening of the airport in Modlin in 2012 plays a signifi-cant role in handling domestic and foreign passenger and cargo flights. Warsaw Modlin Airport handles short- and medium-distance international flights as well as interconnecting domestic flights. In Przasnysz there is an airport of regional importance, which can land single- and double-engine aircrafts (no jet engines). In addition, there will be local airports in Sochaczew and Radom. There is also an active airport Warszawa-Babice in Warsaw dis-trict of Bemowo. It is used by Warsaw Aero club, Helicopter Emergency Medical Service, and many owners of small aircraft and private civil helicopters.

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WHY INVEST in Mazovia?

Poland is the main beneficiary of direct foreign investments in Central and Eastern Europe.

Mazovia is at the head of regions, which have attracted the most foreign capital.

Mazovia is also one of the fastest growing regions of Poland. Mazovia is the Region char-acterized by the greatest absorbing capacity of the sales market, a very high level of activity with regard to investors and a very well developed economic and social infrastructure, but also a steadily improving transportation accessibility. The biggest development in foreign invest-ments may be seen in such sectors as: IT, electronic, automotive, chemical, biotechnological (the region, and Warsaw in particular, has a chance to become Poland’s BPO capital). It is BPO in particular, and also food and construction industries that are considered high potential sec-tors. In the last few years Mazovia has also seen a growing interest among investors operating in the renewable energy sector. Mazovia is the country’s leader in vegetable and fruit harvest.

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The region’s agricultural production is the background for the food industry – it is Mazovia, which has the biggest agricultural land area (13.0% of the country’s total).

The report “CBRE Business Footprints. Global Office Locations 2011” confirms that Warsaw is one of the largest European business centres at the moment. 150 notable international companies have their offices there, which ranks Warsaw 5th in Europe and 12th worldwide. In comparison, Hong Kong, with its 191 offices of internationally renowned companies holds the topmost position.

According to the report “European Cities and Regions of the Future 2012/2013” by fDi Intel-ligence from The Financial Times Ltd., in “Top 10 Major Cities with Best Business Friendliness” (population over 1 m people) category, Warsaw was placed 4th, behind London, Moscow and Brussels.

The economic development of Mazovia and attraction of investors, both national and for-

eign, are hugely influenced by well prepared investment offers. In Mazovia, one can find both

big investment offers with regard to surface, as well as many small investment sites. The big

investment sites in Mazovia are a kind

of “cherry on the cake” on a national

scale. It has to be stressed that those

sites have a regulated legal status and

are mainly flatland, which is impor-

tant from the point of view of future

investors, as well as the investment

procedure. This means that Mazovia

offers many possibilities of location of

big strategic investments not only for

the Region, but also for Poland as a

country.

Top 10 Major Cities with Best Business Friendliness

Rank City Rank City

1 London 6 Paris

2 Moscow 7 Copenhagen

3 Brussels 8 Stockholm

4 Warsaw 9 Bucharest

5 Prague 10 Dublin

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WHY INVEST in Mazovia?

Its central location and role of Warsaw as a decision centre are the causes given the most

as reasons for the location of investments in Mazovia.

The region offers economic entities the best infrastructure in Poland – from the standard

of office surface, through telecommunication, transportation, to business services. Warsaw,

with regard to other European cities, has relatively low rental costs of highest standard office

spaces.

The citizens of the EU and EFTA member countries are allowed to conduct economic activ-

ity based on the same principles as Polish entrepreneurs. The same applies to citizens of

countries which are not members of the European Economic Area who settled in Poland, have

refugee status or benefit from the temporary protection of Poland.

Office space class “A” (monthly rental costs per m2)

Storage and industry spaces(miesięczny (monthly rental costs per m2)

• Warsaw (city centre) 24-26 € • Warsaw 5 €

• Warsaw (others) 15-20 € • Mazovia 2.5 €

Offices in Warsaw

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Main reasons why investors choose Mazovia:

• Easy access to the biggest selling market in Central Europe (38 million people)

• Presence of the capital of Poland, Warsaw, and the fact that this is the most devel-

oped region with regard to economy and standards of living

• Comfortable transport connections with other parts of the country and Europe

• Good level of infrastructure and high level of business services

• Relatively low labour costs and skilled employees

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The fact that the Mazovia Region is most attractive for foreign investors is reflected by

23% of the value of all foreign direct investments in Poland being located here.

The biggest participation of foreign capital comes from countries like: USA, Great Britain,

Germany, Spain, Sweden, Austria, Norway, Japan, Denmark, and South Korea. Among the

companies that invested in the region are: Samsung, LG, General Electric (GE), Skanska,

Stora Enso, ProLogis, IBM, Tesco, Ghelamco, ING Groep (ING Group), ORCO Property

Group and many others.

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PRACTICAL information

Purchasing of real estate by foreigners

The principles of purchasing of real estate by foreigners are governed by the March 24,1920 law on purchasing of real estate by foreigners and the February 20, 2004 law on changes in the law on the purchasing of real estate by foreigners and the law on stamp duty.

Permit for the purchasing of real estate

The general principle is that purchase of real estate by foreigners requires a permit issued by the

Minister of the Interior and Administration. A permit is issued in the form of an administrative deci-

sion based on an application submitted by a foreigner. The application must be written in Polish; at-

tachments in foreign languages must be translated into Polish by a sworn translator. The Minister of

the Interior and Administration may issue a permit for purchasing of real estate or shares or stocks

if there is no probability of threat to the country’s defences, safety or public order. The Minister of

the Interior and Administration should examine the application within 2 months. The permit for

purchase of real estate is valid for two years from the issue date. Purchasing of real estate requires

a notarial deed.

When is a permit required?

A permit is required in each purchase of real estate, i.e. acquirement of real estate ownership

right or perpetual usufruct right, based on le-

gal action.

Actions that require a permit:

• purchase of real estate

• purchase or acquirement of shares or

stocks in a commercial company seated

on the territory of the Republic of Poland

that is the owner or perpetual user of real

estate – if a foreigner takes control over

it, i.e. when a foreigner or foreigners have

directly or indirectly over 50% votes at

partners’assembly or general assembly, or

they havea dominant position in the mean-

ing of the regulations of the Commercial

Companies Code.

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When the permit is not required?

A foreign citizen is not obliged to request a permit concerning the acquisition of real estate in

the following cases:

• acquisition of an individual dwelling

• acquisition of real estate, by a foreigner living in Poland for at least 5 years since granting of

permission for long-term settlement or residency in the European Community

• acquisition by a foreigner who is the spouse of a Polish citizen and has lived in Poland for

at least 2 years since granting of permission for long-term settlement or residency in the

European Community, of real estate, which, as a result of the acquisition, will be the spousal

joint property

• acquisition by the foreigner of real estate, when on the day of acquisition he is entitled to a

legal inheritance from a real estate disposer, and the real estate disposer had been the own-

eror perpetual usufructuary of the real estate for at least 5 years

• acquisition by a “controlled legal person”, for his/her statute purposes, of non-built real es-

tate, of which the total surface area in the whole country does not exceed 0.4 ha in city areas

• acquisition of real estate by a foreigner, being a bank and simultaneously a mortgage credi-

tor, in the form of taking over the real estate as the result of an unsuccessful auction in the

execution process

• acquisition or entering into possession of stocks or shares in a company by a bank as a result

of claiming recourse by said bank due to banking transactions

European Economic Area, EEA

Citizen or businessmen whose place of residence or seat is in the territory of an European

Economic Area (European Union, Iceland, Norway and Lichtenstein) do not need to apply for

a permit for the acquisition of real estate or shares and assets of companies which are for a

permit for the acquisition of real estate or shares and assets of companies which are owners

or perpetual lessees of the real estate.

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PRACTICAL information

State aid

Entrepreneurs who are initiating investments and creating new workplaces can get support and assistance based on statutory law and local regulations.

Personal income tax exemption:

• PIT or corporate income tax exemption

• CIT (only on the territory of Special Economic Zones). The basis for benefiting from state aid in the Special Economic Zones is the ac-quisition of a permit. The criteria of granting support within a zone usually concern the value of the new investment, number of new workplaces created or a combination of both of these parameters.

New investments

A new investment means capital investments to create a new enterprise or taking up an activity that is related with an essential change of the product or production process.

Costs eligible for aid are:

• investment outlays – land, buildings, ma-chines and equipment

• cost of acquisition of intangibles.

Creation of new workplaces

related to new investments: the net growth of job positions as a result of the realization of a new investment within a particular time inter-val, though no longer than three years from the investment closing.

Costs eligible

for aid: costs of work of newly employed staff in

a two years period (gross wage + all obligatory

payments related to employment). Regional aid

is limited by: location of the investment, level of

capital input or costs of employing new workers,

but also the size of the business seeking tax re-

lief.

The permitted level of regional aid:

• Warsaw – 30%

• the remaining area belonging to the Mazovia

Region – 40%. In the case of small enterprises,

the maximum level of regional aid can be up-

graded by 20%, whereas in the case of middle

size enterprises – by 10%. Aid concerning new

investments can be granted together with aid

related to new workplaces, under the condition

that the joint amount of aid does not exceed the

permitted maximum level for a given project.

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Conditions of granting regional aid:• own participation of an entrepreneur in in-

vestment outlays amounting to at least 25% of investment costs

• the investment has to be maintained for a period of no less than 5 years

• created new workplaces will be maintained for no less than 5 years.

Conditions of granting regional aid in SEZ:• investment costs – minimum 100 000 €• own participation, at least 25%• obligation to conduct business, maintain

workplaces for a period of no less than 5 years (in case of large enterprises), no less than 3 years (in case of small and medium sized enterprises).

Real estate tax exemption• are introduced by a resolution of the com-

munity council.

Horizontal aid for employment

• cost financing related to the equipment of

new workplaces

• refund of social insurance premiums (up to

the amount of 3 minimal wages)

• refund of partial employment costs of unem-

ployed people (intervention initiatives).

Long-term programs

The support granted by the government to an

individual investment project, in the case of

large, key investors. In accordance with the

Act on public finances, long-term programs

are established by the Council of Ministers in

the form of a resolution, and under the act,

if the program realization costs exceed an

amount of 100 million PLN (about 25 million

€).

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PRACTICAL information

SPECIAL ECONOMIC ZONES

Special Economic Zones have been set up for the purpose of:

• speeding up development of Polish regions

• development and use of new technical and technological solutions in the national economy

• increasing the competitiveness of goods and services

• management of brownfield assets and infrastructure

• creating new workplaces

In order to support regional development in the Mazovia Region, five subzones, the Special Eco-

nomic Zones, have been created: Warmińsko-Mazurska, Tarnobrzeska, Starachowicka, Suwalska

and Łódzka.

Special Economic Zones (SEZ) are the result of a successful match between the needs of investors

and the needs of the particular regions in which they have been situated. Each zone is an adminis-

tratively separate part of Polish territory, designated for the running of businesses on preferential

terms. An entrepreneur, entering a SEZ has the assurance of tax benefits and an additional benefit

is the fact that he can take up his trading activity on a specially prepared site, fully equipped with

necessary utilities.

(Source: www.paiz.gov.pl)

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Corporate income tax (CIT)

The corporate income tax (CIT) is, besides VAT, the most important tax levied on activities

of legal persons in Poland. This is a flat-rate tax, generally imposed on income.

The basic corporate income tax rate is 19% of the tax base. 19% tax rate is also applicable

to incomes from dividends and other incomes (revenues) from participation in profits of legal

persons based in Poland.

The entities subject to the corporate income tax are as follows:

• legal persons (in particular: limited liability companies, joint-stock companies, capital

companies in organization)

• partners of partnerships being legal persons

• foreign partnerships, if in the state where they are based they are treated as legal persons

and are subject to unlimited tax liability

• tax business groups

Personal Income Tax (PIT)

As a rule, natural persons in Poland are subject to income tax calculated according to a

progressive tax scale, differentiating following income thresholds, i.e., 18% and 32%.

Natural persons subject to personal income tax (PIT) are considered to be taxpayers with

reference to their income, including income from participation in partnerships, i.e.:

• a partnership as defined by the Polish Civil Code

• a registered partnership

• a professional partnership

• a limited partnership

• a limited joint-stock partnership MA

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The global nature of the personal income tax means, among other things, that this tax is imposed

on the income of all natural persons provided that they gain income from sources located in Poland.

A scope of tax liability of these persons determines whether income from sources located abroad is

subject to taxation in Poland as well.

Taxpayers are subject to unlimited tax liability in Poland if they have place of residence in

Poland i.e.:

• stay on the territory of Poland longer than 183 days during a fiscal year or

• have a centre of personal or economic interests in Poland (are domiciled in Poland).

Taxpayers with unlimited tax liability in Poland (Polish tax residents) are subject to taxation on

their world-wide income. Natural persons without a place of residence for tax purposes in Poland

(persons with a limited tax liability, in Poland), are subject to taxation in Poland only with respect to

the Polish-sourced income.(Source: www.paiz.gov.pl)

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PŁOCK INDUSTRIAL AND TECHNOLOGICAL PARK

The Płock Industrial and Technological Park (PPPT) is an investment area managed by Płocki

Park Przemysłowo-Technologiczny S.A. (PPPT S.A.) – a joint stock venture established by PKN

Orlen S.A. and the Municipality of Płock. The area offered by PPPT covers over 200 hectares

with a binding land use plan. On this area, three related components coexist: the industrial

park, technological park and research & development park. It is a joint venture established by

PKN Orlen S.A. and the Municipality of Płock, set up with the goal to create attractive condi-

tions of enterprise development.

Płock Industrial and Technological Park is located in Płock – a city located in the north-west

part of the Mazovia Region. All the investment grounds and headquarters together with the

administration centre are spread in the northern part of the city, adjacent to the refining and

petrochemical facilities of PKN Orlen S.A.

Investment areas, Płocki Park Przemysłowo-Technologiczny S.A.

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PRACTICAL information

Companies that decide to invest in the Płock Industrial and Technological Park can count on at-tractive investment allowances in the field of real estate tax exemption. The basic privilege in this case is a real estate tax exemption for supporting new investments, which is dedicated only to en-trepreneurs locating their investments within the borders of PPPT. Real estate tax exemption can be received for a period of:

• 10 years - if the value of costs eligible for aid program was less than or equal to 10 million PLN (about 2.5 million €)

• 5 years - if the value of costs eligible for aid program exceeded 10 million PLN (about 2.5 mil-lion €).

Another incentive is a real estate tax exemption within the framework of the regional aid program for support of new investments for innovative entrepreneurs or entrepreneurs conducting research and scientific activity in Płock.

The investments on the area of PPPT benefit from a status of special economic zone, which means a possibility to apply by entrepreneurs for income tax exemption.

more information: www.pppt.pl

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Research and Development Centres

Transfer of technology from research and development centres is one of the ways that

knowledge is delivered to enterprises. It is employed by the University Technology Transfer

Centre in Warsaw, among others.

Increasing the flow of innovation to the economy through support of investments in research

and development projects (e.g. evolution of clusters) and so-called market transition of R+D

sphere is one of the priorities of self-government and state authorities in the Region.

The research and development sphere in Mazovia creates structures located in higher edu-

cation, conducting research and government department of research and development units

(e.g. Institutes of: Biotechnology and Antibiotics, Nuclear Chemistry and Technology, Plasma

Physics and Laser Micro Fusion, Precision Mechanics, Automation and Measurements, Elec-

tronic Systems, Electron Technology, Molecular and Cell Biology, Medical Research Centre Pol-

ish Academy of Sciences, Precision Mechanics, Applied Optics, University Technology Transfer

Centre in Warsaw). The strength of personnel in Mazovia in this field shows the amount of

about 34 thousand employees working in about 250 institutions of this kind, what is first and

foremost an accomplishment of Warsaw colleges and institutes.

Mazovia hosts 40% of national research potential. The relation between outlays on research

and development of national income is relatively high and amounts to 1.2% (in Warsaw 1.7%,

in Poland 0.56%). Relatively higher than average in Poland is the activity of Mazovia research

facilities in the winning of foreign funds, which constitute 5.9% of their budget (in Warsaw

6.1%, in Poland 4.6%). The same goes for expenses in conversion per one inhabitant amount-

ing to almost 100 € (in Warsaw 275 €, in Poland 30 €). In Mazovia, a relation of outlays for

R+D to GDP (PKB) will increase to 1.4% in 2015 and to 1.7% in year 2020. MA

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WARSAW

Wszelkie prawa zastrzeżone/All rights reserved

Agencja Rozwoju Mazowsza S.A.

Printed in Poland

ISBN 978-83-62561-15-5

This publication has been prepared

at the request of

Mazovia Development Agency Plc in Warsaw

o f M a z o v i aI N V E S T O R ’ S G U I D E B O O K