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The Warsaw Voice » Real Estate » February 23, 2010
Investing in Poland
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Tax Opportunities and Obstacles
February 23, 2010   
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Katarzyna Klimkiewicz, a partner in TPA Horwath consulting firm, talks to The Voice.

Why is Poland an attractive investment destination?
Poland is perceived by investors as a safe and profitable place to invest funds. The macroeconomic indicators, especially compared to other European economies, confirm this. Tax legislation is also a factor determining the level of return on investment. Polish tax law gives investors vast opportunities to structure their investment in a tax-efficient way-when both entering or exiting an investment, as well as day-to-day operational activity.

Can you elaborate?
First of all, the flat CIT rate of 19 percent and relatively wide catalogue of tax-deductible costs allow a reasonable net profit. What's more, the law opens opportunities to structure the holding in a way that allows an optimized tax settlement-achieving a tax-free increase in the tax value of real estate, deducting the investment financing costs from operational profits or changing the taxation location for exit from real estate investments. When compared to legislation in other parts of Central and Eastern Europe, Polish transfer taxation related to real estate does not create a burden that would make it necessary to restructure a planned acquisition.

In terms of potential obstacles, there is an inconsistent approach by the tax authorities, which gives rise to a certain instability. However, Poland conforms with European Union legal practice, which enhances the overall tax climate.

katarzyna.klimkiewicz@tpa-horwath.pl
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