Is it the end of the Polish Investment Zone?

Agata Ozimek

9 June 2021

In mid-April, the European Commission adopted revised guidelines on regional State aid for 2022-2027. The changes will alter the Member States' regional aid maps for aid granted after 1 January 2022. Experts agree that this is a symbolic end of the Polish Investment Zone in its current shape.
 

The most important changes:

•  Warsaw and the neighbouring districts will not be able to apply for aid in the form of income tax exemption on the basis of a state aid decision;
• the level of aid granted to 9 provinces will be increased to 40%;
• aid intensity in the Wielkopolskie and Dolnośląskie provinces will decrease from 25% to 20%, and from 2024 even to 15%; in the Pomorskie province from 35% to 30%;
• not every investment project from the Wielkopolska and Dolnośląskie regions will be eligible for co-financing - enterprises which are expanding their existing plants, thus increasing production capacity or making changes to the production process, will not be eligible for the aid. Only investors who start a new business, not related to their current one, will be able to apply for aid.

The rules for eastern Poland will not change - the 50% aid level continues to apply.
 
There is also good news for enterprises which are currently using state aid – the revision of the guidelines will not affect pending investment projects and already issued state aid decisions.