Tuesday, 6 October 2026
Poland is moving ahead with changes to its investment incentive system that could give companies as long as 20 years to use tax benefits attached to qualifying projects. The government-backed legislation was submitted to the Sejm at the beginning of October and could strengthen Poland’s position as it competes for major industrial investment across Central and Eastern Europe.
Under the proposed framework, new investment-support decisions could remain valid for between 15 and 20 years, depending on where a project is located. This compares with periods generally ranging from 12 to 15 years under the existing system. The additional time could be particularly valuable for manufacturers undertaking projects with high upfront costs and long periods before reaching full production.
The reform would also change how companies determine the income connected with supported investments. The intention is to make the system easier to apply where businesses expand existing Polish operations rather than establishing entirely separate facilities. This could benefit manufacturers adding production lines, extending plants or introducing new technologies at established sites.
Large investments would face additional scrutiny. Projects capable of receiving at least PLN 40 million in public assistance would require an assessment from Poland’s National Revenue Administration before support could be granted. The threshold was increased from a lower level considered during an earlier stage of the legislative process.
Employment conditions would also be modified, including limits on how far companies can subsequently reduce commitments made when obtaining support. At the same time, the proposed framework would better accommodate investment in industrial automation, recognising that modern factories can involve substantial spending on machinery, robotics and technology without creating employment on the scale traditionally associated with large manufacturing projects.
For the commercial property market, the changes are significant because incentives form part of the calculations companies make when selecting locations. Poland competes with other CEE countries for factories and production expansions, with businesses weighing tax support alongside labour availability, energy costs, transport infrastructure, development land and access to suppliers.
Regional differences will continue to play an important role. Poland’s investment-support framework varies according to location and the characteristics of individual projects, helping regions outside the country’s strongest industrial centres compete for corporate investment. Longer support periods could therefore influence where future factories and related supplier operations are established.
The reform comes as Poland approaches the end of its historic Special Economic Zone system, with remaining SEZ permits due to expire at the end of 2026. The nationwide Polish Investment Zone will consequently become the country’s central mechanism for supporting new investment. The legislation remains subject to parliamentary approval, but its direction points towards longer investment horizons and greater recognition of increasingly automated, capital-intensive industrial projects.
