SEZs close as Poland becomes a single investment zone

For more than 30 years, special economic zones (SEZs) were Poland's flagship investment incentive. Companies operating in a designated zone could earn income free from corporate income tax (CIT), up to a cap linked to the value of the investment. That chapter closes on December 31 2026, when the SEZ system expires.

From January 1 2027, the Polish Investment Zone (Polska Strefa Inwestycji, or PSI) will be the only system continuing this investment incentive format. PSI was introduced in 2018 precisely to replace the SEZs over time; the SEZ regime was kept alive only so that existing zone permits could run their course. For investors, this is a simplification rather than a revolution. But the transition has practical consequences that deserve attention now.

SEZ permits lapse together with the zones. The tax exemption applies only to income earned until December 31 2026. Although annual returns for 2026 will be filed in 2027, after the zones have closed, companies can still claim the exemption for that year. Companies with a non-calendar tax year can do so too, but the same cut-off date applies to them, even though their tax year runs into 2027.

Any unused portion of an SEZ exemption limit generally expires at the end of 2026. For projects with a large remaining limit, this is a real cost that is worth quantifying now and reflecting in plans for further investment in Poland. It may also be worth reviewing the tax depreciation of zone assets, as write-offs that only reduced exempt income brought no tax benefit.

Many investors already operate under both regimes, using SEZ permits for older projects and PSI decisions for newer investments. The expiry of the SEZs does not affect the validity of existing PSI decisions, so these companies can simply continue with the exemption under their decision. For those that do not hold one, the investment incentive ends with the zone, although other tax reliefs not specific to investment remain available. A PSI decision is available only for a new investment, and the application must be filed before work on it starts.

Although the zones are closing, this does not end the potential controversies. Zone exemptions can still be reviewed under the normal rules until the limitation period expires, generally five years from the end of the year in which the tax fell due. Investors should therefore make sure their documentation is complete when their permits end.

In audits, the key issues will be how costs are split between zone and non-zone activity and whether revenue has been correctly attributed to the zone, as the scope of the exemption has raised interpretive questions for years. Other issues that may be examined, and should be properly documented, are whether permit conditions such as investment value and employment levels were met and maintained for the required period, and how the aid already used was calculated.

Unlike the zones, which were tied to designated areas, PSI extends the incentive in general to the whole country. To benefit from the tax incentive, an investor needs to hold a decision on support, issued by the minister responsible for the economy, for a new investment that meets quantitative criteria (minimum eligible costs, depending on local unemployment and company size) and qualitative criteria, such as quality jobs or R&D cooperation.

The benefit is a CIT exemption capped at eligible costs – capital expenditure (CapEx) or two years of labour costs for new hires – multiplied by the regional aid intensity, which reaches 50% for large companies in the least developed regions and more for SMEs. Decisions are currently issued for up to 15 years. Several thousand decisions have been issued since the regime was introduced.

Companies already operating under SEZ permits do not lose access to incentives. What matters now is whether their next expansion projects qualify under PSI. A new production line, higher capacity, or automation of an existing plant can often form the basis for a separate decision on support. In practice, many PSI projects are expansions of existing sites rather than greenfield investments.

In June 2026, the government published a draft amendment to the Act on Supporting New Investment (reference UD391). After public consultation, the Council of Ministers adopted the bill and on October 1 2026 submitted it to the lower house of parliament (print No. 3160). Most of the changes are meant to apply from January 1 2027. However, the bill must still pass both chambers and be signed by the president, and its text may change. Its key proposals are set out below.

• Decisions would be issued for 15 to 20 years in all regions.

• The exemption would cover income from the activity specified in the decision and carried out on the site specified in it, provided the new investment is carried out as part of that activity and on that site. This would replace the contested ‘closely related’ test.

• For CapEx-based aid, the exemption would apply only from the month in which the investment completion date set in the decision has passed.

• Where the maximum aid is at least PLN 40 million, the decision would require an opinion from the head of the National Revenue Administration on the activity and site data that determine the scope of the exemption. If the opinion confirms that data, it would bind the tax authorities unless new facts emerge, although they could still audit the company’s tax returns. From 2029, smaller projects could also request an opinion.

• Investments that consist of buying an industrial robot meeting statutory criteria would be released from the job-creation condition.

Decisions issued before the amendment takes effect would remain valid for their original term, and the new exemption rules would apply only to decisions issued after December 31 2026. Applications pending on January 1 2027 would be decided, and the resulting exemption calculated, under the current rules.

Overall, the direction of the amendment is positive. A longer term and an exemption tied to the activity and site specified in the decision would make PSI more attractive and more predictable. Some elements raise reservations, however, and a final assessment should wait until the legislative process is further advanced.

Pillar two sets a 15% minimum effective tax rate for groups with annual revenue above €750 million. A PSI exemption lowers the tax paid in Poland. If the group’s pillar two effective tax rate in Poland falls below 15%, part of the benefit may be offset through the Polish domestic top-up tax. Further regulations adapting PSI to the pillar two regime may follow from 2027.

PSI is one element of a broader incentive package available to taxpayers in Poland. Investors can also use:

• The R&D relief, which gives an additional deduction for qualifying R&D costs;

• The 5% IP Box on qualifying intellectual property income; and

• Targeted reliefs for prototypes, innovative employees, and robotisation (the latter for costs incurred until the end of 2026; an extension has been announced but is not yet adopted).

In some circumstances, these incentives can work alongside a PSI decision, although costs already used to calculate exempt income cannot also be deducted under the R&D, prototype, or sales-expansion reliefs. Taken together, this makes Poland a competitive base for regional manufacturing and service hubs.

For simpler structures owned only by individuals, the ‘Estonian CIT’ offers an alternative, where tax is deferred until profits are distributed, with no CIT due in the meantime. It cannot, however, be combined with a PSI exemption. Small taxpayers, with annual revenue of up to €2 million, may also pay CIT at a reduced 9% rate.

Timing is the main planning question. Work on a project cannot start before the PSI application is filed. Applications filed before the amendment takes effect, planned for January 1 2027, would stay under today’s rules. Applying before year-end secures the current framework; waiting gives access to longer decisions and the new definition of exempt income but only if the bill is enacted as proposed and on time.

Before 2027, affected companies should:

1. Review how much of each SEZ exemption limit remains;

2. Review the tax depreciation of zone assets;

3. Recheck exempt income calculations for open tax years, including the cut-off for non-calendar tax years;

4. Confirm and document compliance with SEZ permit conditions;

5. Assess planned expansion and automation projects under PSI;

6. Model the pillar two impact before applying;

7. Check whether the 9% CIT rate or the Estonian CIT is available;

8. Identify qualifying R&D activity for the R&D tax relief;

9. Check which robotisation costs have been incurred by year-end, as only these currently qualify for the robotisation relief (an additional 50% deduction); and

10. Consider the sales-expansion relief for the costs of entering new markets with own products.