Investing in Poland has become a natural step for many foreign companies seeking to expand their presence in Europe. A large domestic market, a strong pool of skilled talent and a favourable geographic location make Poland an attractive destination for capital-intensive projects. For large-scale investments – such as new production facilities, expansions, R&D centres or manufacturing transformations – competitive advantage is increasingly driven not only by financial performance, but also by tax certainty. This is where the Investment Agreement comes into play – a dedicated instrument offered by the Polish Ministry of Finance that significantly increases the predictability of the tax consequences of investments carried out in Poland.
What is the Investment Agreement and why it matters for investing in Poland
The Investment Agreement is a contract concluded between the investor and the Polish Minister of Finance, aimed at providing a comprehensive and binding determination of the tax consequences of a planned or ongoing investment. It is not a single tax ruling, but rather a coordinated resolution of multiple tax issues within one integrated instrument.
For foreign investors, this represents a qualitative shift in the approach to investing in Poland. Instead of conducting parallel proceedings before different tax authorities, the investor may seek one coherent and consolidated position from the tax administration, taking into account the specifics of the business model and the economic reality of the investment.
Investing in Poland without tax surprises – scope of the Investment Agreement
One of the key advantages of the Investment Agreement is its broad scope. It may include the equivalent of several tax instruments that have traditionally functioned separately, such as:
- an Advance Pricing Agreement (APA),
- a Binding Rate Information (WIS – Binding VAT Rate Information),
- a Binding Excise Information (WIA),
- a Protective Opinion with respect to the General Anti-Avoidance Rule (GAAR),
- an Individual Tax Ruling,
- an Opinion on Top-up Tax (Pillar II).
Important clarification: the scope of an Investment Agreement always depends on the content of the investor’s application and may be limited to selected tax issues, in line with the specific needs of the project and the business priorities of the applicant.
As a result, investing in Poland can become more predictable, while the investor gains the opportunity to address multiple key tax areas within a single, coordinated procedure.
Who can benefit from an Investment Agreement
Investment Agreements are available to entities planning or implementing an investment in Poland with a minimum value of PLN 50 million. Importantly for foreign investors, there is no requirement to already conduct business activity in Poland at the time of submitting the application.
This instrument is particularly attractive for investors who:
- build a new manufacturing or production facility,
- increase the production capacity of an existing plant,
- introduce new products or technologies,
- carry out a fundamental change to an existing production process,
- acquire assets of a plant that would otherwise be closed (subject to meeting statutory conditions).
In practice, this means that investing in Poland with the support of an Investment Agreement is suitable for projects in the industrial, energy, technology and R&D sectors alike.
Legal certainty as a competitive advantage when investing in Poland
The Investment Agreement is binding on Polish tax authorities with respect to the matters covered by it. This means that if the investor acts in accordance with the terms of the agreement, the tax authorities should resolve the covered issues in line with its provisions.
For foreign investors, this is of fundamental importance. Stability and predictability of the tax system are key decision-making factors when selecting a location for major projects. Investing in Poland with the protection of an Investment Agreement helps reduce the risk of tax disputes, lengthy audits and costly administrative or court proceedings.
Flexible procedure and a cooperative approach by the authorities
The procedure for concluding an Investment Agreement has been designed to be flexible and less formalised. The investor has direct access to the Investor Tax Service Centre (Centrum Obsługi Podatkowej Inwestora) within the Polish Ministry of Finance, participates in consultation meetings and may clarify project-related issues on an ongoing basis.
Importantly, during the process the investor may receive preliminary information on the expected direction of the tax authorities’ position. As a result, investing in Poland no longer relies solely on unilateral risk assessments, but becomes a more structured and informed decision-making process.
Long-term tax security
An Investment Agreement may be concluded for a period of up to five tax years. During this time, the investor may continue to benefit from the support of the Investor Tax Service Centre, including during the implementation phase of the project. If the investment schedule or scope changes, the investor may apply for an amendment to the agreement.
For investors implementing multi-stage projects, this provides genuine stability of operating conditions and greater flexibility in responding to changing market circumstances.
When an Investment Agreement does not apply
The Investment Agreement does not apply to investments that have already been completed – it must relate to a planned or ongoing investment. It also does not cover typical capital investments (such as the acquisition of shares as an end in itself) or tax issues unrelated directly to the investment. Moreover, the agreement cannot include matters that have already been resolved through other binding instruments (e.g. an individual tax ruling).
Therefore, when planning investing in Poland, it is advisable to consider this instrument at an early stage – before key business decisions become irreversible.
Summary – The Investment Agreement as a foundation for effective investing in Poland
The Investment Agreement is one of the most advanced instruments supporting large-scale investments available within the Polish tax system. It combines legal certainty, procedural flexibility and practical support both during the application process and throughout the investment’s implementation.
For foreign investors, investing in Poland with the use of an Investment Agreement may result in greater predictability of tax settlements, reduced risk exposure and improved management of sensitive areas such as VAT, excise duties, transfer pricing or tax avoidance risks. In an increasingly competitive global environment for capital, such legal certainty is not merely a comfort – it is often a decisive strategic advantage.
