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Chinese Investments in Poland

Written by: Editor

Chinese-Investments-in-Poland.jpgChinese investors have a significant interest in strengthening their relations with Poland, and this means more investments in the European country. Chinese investors are looking for investment opportunities in Poland, especially in the manufacturing, energy and food industries. In 2015, the value of Chinese investment in China was around  15.2 billion euros, according to Chinese sources. One of the latest announcements in regards to Chinese investments in Poland is a Chinese company that produces construction equipment and is interested in opening a European headquarter in Warsaw. Our lawyers in Poland highlight the main benefits for Chinese foreign investors who decide to invest in Poland.

Why is Poland attractive for Chinese investors?

 
The latest Chinese-Polish cooperation is in the construction sector, namely the production of construction equipment. Chinese producer LiuGong Dressta Machinery already has a production hall in Poland and wishes to open a European headquarters in Warsaw, as well as modernize its existing factory. 
 
Poland is of great interest to Chinese investors because of its geographical importance within the New Silk Road – an ambitious project that aims to rethink and recreate the ancient trade route. Poland has the potential to become an important production and distribution center along the Road.
 
Poland has a high GDP and a strong, stable economy making it a good destination for investments in Europe. Chinese investors can benefit from the country's pool of highly skilled workers and the corporate income tax which has a low value compared to surrounding jurisdictions (a standard rate of 19% and a lower 15% rate for qualifying businesses).
 
The two countries have taken steps to strengthen their relationship, including establishing a second direct connection from Poland (via Polish Airlines LOT) to Beijing.
 
Company formation in Poland is straightforward, however, Chinese investors can enlist the help offered by company incorporation specialists and the lawyers in Poland who specialize in foreign investments and foreign judgments. 
 

Poland – China cooperation

 
The trade and cooperation between Poland and China are maintained through a series of treaties or agreements to which both countries are part of. One of the most notable in terms of trade and mutual foreign investments is the double tax treaty signed between the two jurisdictions. This treaty allows for reduced withholding tax rates for dividends and income derived from one of the two jurisdictions is only taxed in the country where it is produced. 
 
One of our lawyers in Poland can give you more details on the conditions for taxation, as they arise from this double taxation avoidance agreement as well on the other laws for investments that may interest you if you are a Chinese investor in Poland.
 
Contact our law firm in Poland for more information on investments and how we can help you with legal services.
 
 

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