Poland’s investment policy requires a new opening, according to the Sobieski Institute. This assessment reflects both current economic and international challenges, as well as the gradual exhaustion of Poland’s existing sources of GDP growth and investment incentives. At the end of next year, investor permits issued under the 1994 Special Economic Zones (SEZ) Act will expire. In the view of the institute’s experts, the government must clearly state what the future shape of the investment support system will be.
The need for action is outlined in the Sobieski Institute’s report “Let’s Restart the Growth Engine: A New Investment Support System after 2026.” According to its authors, this is the last moment to take strategic decisions.
“First, the Special Economic Zones Act expires next year and investors do not know what will happen next. Second, new EU state aid rules came into force this year, making everything Poland currently offers—tax reliefs and grants—less attractive, while others are not standing still. The Czechs, Slovaks and Hungarians have adjusted their legal frameworks and are now in direct competition with us. Third, foreign investment in Poland has dropped dramatically over the past two years—by more than 55% in 2024 compared with 2023. We are clearly falling behind not only countries like Sweden or France, but also Slovakia, the Czech Republic and Romania. Something must be done,” said Jadwiga Emilewicz, Vice President of the Sobieski Institute, speaking to Newseria.
Under the 1994 SEZ Act, permits issued within the system—along with associated tax exemptions—expire on 31 December 2026. A newer support mechanism currently operates under the Act on Supporting New Investments, known as the Polish Investment Zone (PSI), which governs public aid for new projects.
Data from the National Bank of Poland show that annual foreign direct investment inflows to Poland fell from PLN 125.7 billion in 2023 to PLN 56.5 billion in 2024, reducing FDI inflows as a share of GDP from 3.7% to 1.6%. According to the Sobieski Institute, while the decline is not unique in the region, it represents a particularly severe blow to Poland, which for decades was a leader in Central and Eastern Europe in terms of investment attractiveness. As a result, the experts argue, immediate economic policy intervention is required.
“We should streamline and unify the system through which we engage with foreign investors. The structure of special economic zones should change. We propose not 14 zones, but five macro-regions managed by a single entity. We point to the Industrial Development Agency as an institution that would not only manage the zones but also provide capital—investing in 200–300-hectare areas, equipping them with infrastructure and making them attractive to foreign investors,” Emilewicz explained.
She added that the Industrial Development Agency, supported by investor services from the Polish Investment and Trade Agency, could coordinate investment policy, oversee its implementation, and provide capital support to regional and macro-regional zone operators—especially in preparing investment sites and equipping them with necessary infrastructure.
The proposal envisions five macro-regional investment zones: Northern (West Pomeranian, Pomeranian, Kuyavian–Pomeranian, Warmian–Masurian), Eastern (Podlaskie, Lublin, Subcarpathian, Świętokrzyskie), Central (Mazovian, Łódź), Southern (Opole, Silesian, Lesser Poland), and Western (Lower Silesian, Greater Poland, Lubusz).
“This would involve consolidating and reorganizing ownership and capital structures within zones that already play a dominant role in their regions. We do not want any region to be disadvantaged by losing its autonomous economic zone. That is why the macro-regional system should be complemented by 49 regional branches, based on the former voivodeship structure. These branches would serve as competence centers, representing all development institutions and providing full access to available know-how and support,” explained Paweł Kolczyński, a Sobieski Institute expert and partner at Proinvestor Advisors.
The structure would also include a network of strategic industrial and investment parks—at least one per voivodeship—along with gradual investment in utilities and energy infrastructure.
“In an optimal scenario, each of the 49 regional branches would be able to create such an investment site. It is crucial that all regions in Poland are offered concrete solutions to attract investors. This can only happen if properly prepared investment land is available, allowing companies to start and operate their businesses,” Kolczyński added.
The report also stresses the need for rapid legislative action to incorporate new EU state aid rules into the Polish system.
“We need legal solutions that allow investors in Poland—such as automotive companies subject to the 15% global minimum tax—not to lose the benefit of tax incentives here by having to offset them against that minimum tax,” Emilewicz said.
On 25 June, the European Commission adopted the Clean Industrial State Aid Framework (CISAF), setting new conditions for supporting industrial and green transition projects until the end of 2030. The report argues that these changes make it necessary to develop a ‘SEZ 2.0’ model—modern zone-based instruments competitive with the current Polish Investment Zone and aligned with EU law.
“Today, we must fight hard to attract new investments to Poland. We are roughly sixth in Europe in terms of industrial output, but competition from our neighbors—the Czech Republic, Slovakia and Hungary—is very strong. Investments are not guaranteed forever. That is why mechanisms replacing or expanding the zone system, as well as CISAF and Pillar Two, are extremely important for us,” said Jakub Faryś, President of the Polish Automotive Industry Association.
“Corporate headquarters are asking what comes next. Without a regulatory answer, companies like Volkswagen, Mercedes or Pratt & Whitney will not extend their presence amid such uncertainty. They need clarity on what will happen once the SEZ Act expires and once the grant program ends later this year. Today, they do not have that answer. That is why we are sounding the alarm for public administration—action and communication are urgently needed to prevent future announcements of companies relocating, downsizing or shutting down production lines in Poland,” Emilewicz warned.
Experts emphasize that the very concept of investment support is changing. In the past, fiscal incentives—SEZs, grants and tax breaks—were paramount. Today, investors increasingly value regulatory predictability and macroeconomic stability, especially amid geopolitical and energy uncertainty. Access to cheap, stable and green energy is becoming a key competitiveness factor. Still, SEZs and grant programs remain an important tool, allowing the state to influence development priorities. The Sobieski Institute report stresses the need to design tailored incentive packages for priority sectors such as defense or semiconductors.
“Special economic zones remain a crucial part of the investment support system, but 30 years of experience show that the model must evolve. We see zones with very different levels of potential, investment capacity and capital strength—and some that are running out of land available for investors,” Paweł Kolczyński concluded.
Source: Newseria / Sobieski Institute
