Foreign Direct Investment

Poland figures among the most attractive countries in Europe in terms of FDI. According to UNCTAD's World Investment Report 2023, FDI inflows to Poland reached USD 29.4 billion in 2022, in line with the record-high level of USD 29.5 billion registered one year earlier and more than twice the pre-COVID level. In the same year, the total inward stock of foreign investments stood at USD 269.8 billion, around 39.2% of the country’s GDP. The National Bank of Poland (NBP) has reported that in 2022, FDI amounted to PLN 140.3 billion (4.5% of the GDP). According to the central bank, in 2022 reinvestments of profits totalled PLN 75.8 billion, inflow of capital against debt instruments amounted to PLN 35.7 billion, and inflow of capital against shares and other equity instruments came to PLN28.8 billion. The largest investors in the country in terms of stock are the Netherlands, Germany, Luxembourg, France, and Spain; with investments directed mainly towards manufacturing (33.1%), wholesale and retail (15.7%), financial and insurance activities (11.7%), and real estate sectors (9.9% - data NBP). In the 2023 rankings by fDi Intelligence from the Financial Times group, two Polish economic zones achieved global recognition: the Katowice Special Economic Zone (KSSE) in south-western Poland secured the top spot in Europe for the seventh time and ranked fourth globally; meanwhile, the Lodz Special Economic Zone in central Poland was named the tenth best free zone worldwide. According to the latest figures from the OECD, in the first half of 2023, FDI inflows to Poland totalled USD 13.2 billion, down by 31.7% compared to the same period one year earlier (when FDI inflows stood at USD 19.3 billion).

Poland’s main assets are its strategic position, large population, its European Union membership, economic stability, skilled labour at a competitive cost and a fiscal system attractive to businesses. Moreover, Poland has a number of dynamic Special Economic Zones, and the government founded the Polish Investment and Trade Agency (PAIZ) to improve conditions for FDIs. However, Polish law limits foreign ownership of companies in selected strategic sectors and restricts the acquisition of real estate, especially agricultural and forest land. Furthermore, a new law came into force giving the President of the Office for Competition and Consumer Protection the authority to review FDIs by non-EEA and non-OECD investors on the grounds of public security, order and health. In 2022, Poland widened and extended its controls on new foreign direct investments for another three years, until mid-2025. Overall, the Polish business climate is good and the country ranks 29th out of 82 countries in the Economist Business Environment ranking, 41st among the 132 economies on the Global Innovation Index 2023 and 42nd out of 184 countries on the 2023 Index of Economic Freedom.