Public procurement in Poland as an opportunity for foreign companies

Public procurement in Poland is becoming an increasingly important area for companies looking for stable revenue streams, access to large-scale projects and a practical route into the Polish market. For foreign companies, public tenders in Poland can be more than just a sales channel. They can also help businesses understand the needs of the Polish public sector, build relationships with local partners and gradually establish an operational presence in Poland.

The scale of the market is significant. According to the Polish Economic Institute (PIE), the total value of the Polish public procurement market reached PLN 587 billion in 2024, equal to 13.9% of GDP. The segment of national and EU-regulated contracts amounted to approximately PLN 330 billion and represented 56% of the market. PIE also forecasts that the total market may exceed PLN 1 trillion by 2029.

For foreign businesses, this creates real commercial potential. At the same time, public procurement in Poland is not an easy market to enter. It requires familiarity with procedures, strong internal organisation, appropriate financial capacity and, in many cases, local experience or cooperation with a partner already operating in Poland.

This article is based on the May 2026 report by the Polish Economic Institute (PIE), “Billions on the table. Do Polish companies fully benefit from public procurement?”, which analyses the activity of Polish and foreign companies in the Polish public procurement market.

Can a foreign company win public contracts in Poland?

A foreign company may apply for public contracts in Poland, provided that it meets the participation requirements in a given procedure and is not subject to exclusion. Access rules depend on several factors, including the value of the contract, the type of procedure, the contractor’s country of origin and any international agreements governing access to the public procurement market.

The Polish procurement framework is based primarily on the Public Procurement Law of 11 September 2019, which entered into force on 1 January 2021. The Public Procurement Office (PPO; Polish abbreviation: UZP) also publishes information on the legal framework and applicable executive acts, including EU threshold rules for 2026–2027.

In practice, foreign contractors may enter the Polish public procurement market in two main ways.

The first model is direct participation. A company registered abroad submits a bid in a Polish tender procedure and performs the contract without setting up a local entity. This model is legally possible, but in practice it is relatively uncommon, especially in national procedures.

The second model is indirect participation. A foreign investor operates through a Polish subsidiary, branch, local affiliate or another entity belonging to an international capital group. This model is much more common. PIE data shows that when ownership structure is taken into account, the presence of foreign contractors in Polish national procurement is clearly higher than registration data alone would suggest.

For a foreign company, this means that formal access to the market is often only the starting point. In many cases, a local presence, knowledge of Polish administrative practice and the ability to prepare documentation efficiently in Polish may create a practical advantage.

Contractors from certain third countries should also pay close attention to the current access rules. Since September 2025, amendments to the Public Procurement Law have affected participation by contractors from third countries not covered by the World Trade Organization’s Agreement on Government Procurement (GPA) or other EU market access agreements. In such cases, the contracting authority may decide whether to admit them to the procedure and under what conditions.

Why is the Polish public procurement market attractive?

The Polish public procurement market is attractive mainly because of its scale, the stability of public-sector demand and the wide range of industries covered by public purchases. Contracting authorities in Poland include not only ministries and central government offices, but also local governments, hospitals, universities, cultural institutions, schools, public-sector entities and some municipal companies.

From the perspective of a foreign business, public procurement in Poland can serve several strategic purposes. It may provide access to major publicly funded contracts, support market entry without the immediate need to build a large private-sector sales network, strengthen business credibility through public-sector references and help a company understand the needs of Polish administration, healthcare, infrastructure, energy or education.

This market may be particularly attractive for companies offering specialist products or services. Polish contracting authorities often look for advanced technological solutions, specialised equipment, advisory services, IT services, laboratory solutions or medical technologies. In these areas, the participation of foreign contractors is higher than the average for the overall market.

Which sectors offer the best opportunities for foreign contractors?

The strongest potential for foreign companies appears in sectors where technology, specialist know-how, certification, product quality and experience in complex projects are important. PIE estimates that between 2021 and 2025 foreign contractors won 19% of national contracts for technology and specialist services, compared with a 7.7% share of signed contracts in the national market overall.

Technology and IT services

The Polish public sector continues to invest in digitalisation, IT systems, cybersecurity, IT support services and digital solutions for public administration. Foreign companies with experience in public-sector projects in other countries can use that track record as a quality argument, especially in larger or more complex Polish tender procedures.

Medical equipment, pharmaceuticals and healthcare solutions

Public hospitals and healthcare institutions are important contracting authorities in Poland. Foreign contractors have a relatively strong position in this category, partly because the market is highly specialised and certification, compliance and international supply chains play a major role. PIE data shows that foreign contractors were particularly visible in specialist categories such as chemical products, medical devices, pharmaceuticals and laboratory equipment, although their overall share in national public procurement remained limited.

Laboratory, optical and precision equipment

Contracts for laboratory, optical and precision equipment often involve detailed technical parameters, servicing obligations, specialist experience and compliance with specific standards. This is an area where foreign companies can compete not only on price, but also on technology, quality and after-sales support.

Chemicals and industrial machinery

Contracts for chemicals, machinery and industrial equipment are relevant for many Polish public institutions, universities, laboratories, municipal entities and research centres. Foreign suppliers may have an advantage if they offer specialised solutions that are not widely available on the domestic market.

Financial, insurance, advisory and business services

In selected professional services segments, international firms can benefit from project experience, structured methodologies, operational scale and familiarity with standards used in other EU countries. This applies particularly to projects requiring expert competence or the management of multi-stage processes.

Construction, infrastructure and energy

Poland remains a large market for infrastructure investment. However, entry barriers in construction are often higher than in standard supply contracts. Local regulations, experience in delivering projects in Poland, operational resources, staffing, subcontractor management, contractual liability and the ability to manage cost risk all play an important role.

An attractive market, but a formal procedure

Public procurement in Poland is attractive, but it is also highly formalised. Tender procedures are based on principles such as transparency, equal treatment of contractors and fair competition. For businesses, this means that every requirement in the procurement documentation must be analysed carefully and followed precisely.

Typical challenges include preparing a bid that fully meets the terms of the contract, proving relevant experience and technical or staffing capacity, submitting registration, tax and financial documents, providing a tender deposit or bid bond where required, avoiding formal errors that may result in rejection, accepting limited room for contract negotiation and ensuring timely performance in line with the contract.

For foreign companies, the Polish language, local contracting authority practice and the need to interpret Polish tender documentation correctly can be additional barriers. Even if a company has public procurement experience in another EU country, the Polish market may require adjustments in workflow, documentation and bidding strategy.

Low competition may create opportunities for new bidders

One important feature of public procurement in Poland is the relatively high share of procedures in which only one bid is submitted. In 2024, Poland recorded a 56% share of single-bid procedures in the segment of tenders above EU thresholds, one of the highest levels in the EU.

For the public sector, low competition is a problem because it limits the ability to achieve the best value for money. For foreign companies, however, it may also signal that some segments still have room for new contractors, especially where local businesses do not submit bids because of formal barriers, lack of resources or a focus on the private market.

This does not mean that market entry is easy. It does mean that a well-prepared company able to meet formal requirements and offer competitive value may identify areas with genuine business potential.

Should a foreign company set up a company in Poland to improve its chances?

Establishing a company in Poland is not automatically required to participate in public procurement. In many cases, a foreign company may submit a bid directly. In practice, however, a local presence may strengthen organisational credibility and make contract delivery easier.

A Polish entity may be useful especially when a company is planning long-term market presence, regular participation in public tenders, employment of local staff, service operations, warehousing, cooperation with Polish subcontractors or projects requiring ongoing contact with the contracting authority.

A local structure can help in several areas. It may improve communication with Polish administration and contracting authorities, organise tax and accounting matters, help build a business track record in Poland, strengthen the ability to perform contracts requiring local resources, support hiring and subcontractor management and increase trust in projects that require continuous service.

This is not always necessary. If a foreign company intends to deliver a one-off product that does not require extensive local support, direct participation may be sufficient. The decision to establish a company in Poland should depend on the broader market entry strategy, the type of contracts pursued, the planned scale of activity and the tax and operational requirements connected with contract performance.

Formal, tax and organisational barriers

Before entering the public procurement market in Poland, a foreign company should analyse not only the requirements of the tender procedure, but also the wider implications of doing business in Poland. Winning a public contract is only the first stage. Correct contract performance, tax settlement, contractual liability and operational organisation are equally important.

Formal barriers

The main formal barriers relate to procurement documentation, contractor qualification and evidence requirements. A contracting authority may require proof of experience in similar projects, specific staffing capacity, financial standing or technical capability. The contractor must also submit documents confirming that there are no grounds for exclusion.

For foreign entities, one practical challenge is identifying which documents from the country of registration correspond to Polish requirements. Errors at this stage may lead to requests for supplementation, delays or rejection of the bid.

Tax barriers

Performing a contract in Poland may trigger obligations relating to value-added tax (VAT), corporate income tax (CIT), possible permanent establishment, cross-border settlements and transaction documentation. For longer projects, it is particularly important to assess whether the scale and nature of activity in Poland may create additional tax obligations.

The invoicing model, payment deadlines, settlement currency, place of supply and possible VAT registration obligations also matter. An incorrect assessment of these issues may reduce the profitability of the contract or increase the contractor’s risk.

Legal barriers

Public procurement contracts in Poland are usually less flexible than private-sector contracts. The contracting authority often defines the essential contractual terms at the tender stage. The contractor should carefully review contractual penalties, liability for delays, acceptance procedures, the possibility of changing remuneration, termination rules and complaint or service procedures.

Long-term contracts, infrastructure projects, deliveries of specialist equipment and services where performance costs may change over time require particular attention.

Organisational barriers

Public procurement requires efficient internal organisation. A company must monitor notices, analyse specifications, prepare bids, control deadlines, collect documents and coordinate legal, technical and financial teams.

For a foreign contractor, additional challenges include local language support, understanding the practice of Polish contracting authorities and responding quickly to requests during the procedure. In many cases, it is more effective to build a continuous tender evaluation process rather than react only to individual announcements.

Market entry strategy for public procurement in Poland

For a foreign company, a gradual approach is usually the safest way to enter the Polish public procurement market. The first step should be an analysis of sectors and contract categories where the company has a real competitive advantage. Not every tender is worth pursuing. Contract value, formal requirements, delivery risk, deadlines, competition and potential profitability should all be assessed.

The second step is choosing the operating model. A company may bid independently, act through a Polish entity, create a consortium, cooperate with a local partner or start as a subcontractor. Each model has different legal, tax and business consequences.

The third step is preparing the operational base. This includes tender monitoring, document templates, people responsible for bidding, legal support, tax analysis and procedures for controlling contractual risk.

The fourth step is building experience. In public procurement, references, delivery history and familiarity with procedures are highly valuable. For this reason, the first contracts, even smaller ones, may be strategically important for further development in Poland.

Public procurement as a channel for entering the Polish market

Public procurement in Poland can be an effective market entry channel for foreign companies, but it requires preparation and a realistic assessment of risk.

The strongest opportunities are available to companies offering specialist products, technologies, medical, IT, laboratory, financial, advisory or infrastructure solutions. In these segments, competence, quality and experience often matter more than local presence alone.

At the same time, foreign contractors should remember that the Polish public procurement market is highly formalised. Success depends not only on a competitive offer, but also on the ability to meet procedural requirements, manage Polish tax implications, control contractual risk and perform the contract efficiently.

For companies planning long-term expansion in Poland, public procurement may become an important part of a broader market entry strategy. It requires a strategic approach: selecting the right sectors, assessing the best model of presence in Poland, preparing documentation properly and monitoring tender opportunities on an ongoing basis.