Are you a business owner or investor based in Europe, looking for using tax efficient jurisdictions to structure your business and investments?
Maybe you have heard of offshore jurisdictions or the conventional ‘tax havens’ and are considering if it’s the right strategy to use these countries for tax planning.
Actually, the solution might be much closer than you think.
If you can find a country right in the heart of Europe, with a stable legal system, which can provide you more or less the same tax benefits, would you consider establishing a holding company in such a country?
Well, that is exactly what Poland offers.
Why wander in far-off locations when good solutions are right in front of you?
With ease of access and high cost efficiency, Poland offers a great alternative to the classic “tax haven” jurisdictions. How? Let’s look at this in a little more detail.
Taxation
Poland has recently had a slew of amendments in taxation, referred to as the “Polish Deal”, which make it a very attractive jurisdiction from a tax perspective. The amendments have established a preferential system of taxation of holding companies, such as a Polish Limited Liability Company ( Polish: Spólka z ograniczona odpowiedzialnoscia or Sp z o o).
The preferential system is available for a Polish holding LLC which has tax residency in Poland and which directly holds at least 10% shares in the capital of the investee company. If this condition is met, the Polish holding LLC can avail of exemption from taxation for 95% of the dividends received from the investee company. Let’s look at how the tax benefits work out with an example of a dividend of EUR 100,000 from one or more investee companies.
| Amount of dividends to be declared | EUR 100,000 |
| Amount of dividends which will be taxed (95% are exempt) | EUR 5,000 |
| Corporate tax applicable on dividend income (at the rate of 19%) | EUR 950 |
| Effective tax on the dividends (950 / 1,00,000) | 0.95 or 1% |
In addition to this, the disposal of the shares held in the investee entities is fully exempt from tax, which means that if you are building an entity to sell, your holding company will not be taxed on the transfer of those shares too.
In addition to taxation, there are other advantages too.
Ease of access and handling
Being based in the heart of Europe, Poland is easily accessible from other countries. The digitalisation of the processes makes it possible to move things faster, thus saving time on both counts.
Cost Efficiency
Poland delivers greatly in terms of the ease to incorporate and manage the business from outside of Poland, compared to the cost incurred in establishing a Polish holding LLC. The price-performance ratio is much better than other traditional jurisdictions.
We at LTC Business Services, have advised many business owners and other clients on the establishment and the effective use of holding companies in Poland. With us by your side, you can expect clear guidance and smooth sailing through the processes, even when you are not resident in Poland.
Read more about more about Poland at https://ltcbs.eu/poland/
Contact us today to establish your holding company in Poland and derive these great benefits!
Are you a business owner or investor based in Europe, looking for using tax efficient jurisdictions to structure your business and investments?
Maybe you have heard of offshore jurisdictions or the conventional ‘tax havens’ and are considering if it’s the right strategy to use these countries for tax planning.
Actually, the solution might be much closer than you think.
If you can find a country right in the heart of Europe, with a stable legal system, which can provide you more or less the same tax benefits, would you consider establishing a holding company in such a country?
Well, that is exactly what Poland offers.
Why wander in far-off locations when good solutions are right in front of you?
With ease of access and high cost efficiency, Poland offers a great alternative to the classic “tax haven” jurisdictions. How? Let’s look at this in a little more detail.
Taxation
Poland has recently had a slew of amendments in taxation, referred to as the “Polish Deal”, which make it a very attractive jurisdiction from a tax perspective. The amendments have established a preferential system of taxation of holding companies, such as a Polish Limited Liability Company ( Polish: Spólka z ograniczona odpowiedzialnoscia or Sp z o o).
The preferential system is available for a Polish holding LLC which has tax residency in Poland and which directly holds at least 10% shares in the capital of the investee company. If this condition is met, the Polish holding LLC can avail of exemption from taxation for 95% of the dividends received from the investee company. Let’s look at how the tax benefits work out with an example of a dividend of EUR 100,000 from one or more investee companies.
| Amount of dividends to be declared | EUR 100,000 |
| Amount of dividends which will be taxed (95% are exempt) | EUR 5,000 |
| Corporate tax applicable on dividend income (at the rate of 19%) | EUR 950 |
| Effective tax on the dividends (950 / 1,00,000) | 0.95 or 1% |
In addition to this, the disposal of the shares held in the investee entities is fully exempt from tax, which means that if you are building an entity to sell, your holding company will not be taxed on the transfer of those shares too.
In addition to taxation, there are other advantages too.
Ease of access and handling
Being based in the heart of Europe, Poland is easily accessible from other countries. The digitalisation of the processes makes it possible to move things faster, thus saving time on both counts.
Cost Efficiency
Poland delivers greatly in terms of the ease to incorporate and manage the business from outside of Poland, compared to the cost incurred in establishing a Polish holding LLC. The price-performance ratio is much better than other traditional jurisdictions.
We at LTC Business Services, have advised many business owners and other clients on the establishment and the effective use of holding companies in Poland. With us by your side, you can expect clear guidance and smooth sailing through the processes, even when you are not resident in Poland.
Read more about more about Poland at https://ltcbs.eu/poland/
Contact us today to establish your holding company in Poland and derive these great benefits!
Learn from Our Experts
Unlock the Power of Europe: Why Germany is the Ideal Investment Location for Foreign Investors
Have you ever considered setting up a holding company? Find out more about the benefits. Reduce taxes rates on dividends or capital gains significantly or in many cases even to an astonishing figure of 0%. Find out more about the benefits.
Why Poland is the Ideal Location for Near and Onshoring in Europe
Have you ever considered setting up a holding company? Find out more about the benefits. Reduce taxes rates on dividends or capital gains significantly or in many cases even to an astonishing figure of 0%. Find out more about the benefits.
Setting up a Work Agency with German ANÜ License: Combining the Advantages of Both Jurisdictions with LTC Business Services
Have you ever considered setting up a holding company? Find out more about the benefits. Reduce taxes rates on dividends or capital gains significantly or in many cases even to an astonishing figure of 0%. Find out more about the benefits.
Are you ready to start your business in Poland?
Fill out a quick and simple questionnaire to get started today.
Frequently asked questions
If you have any unanswered questions, please don’t hesitate to contact us.
LTC Business Services provides a range of services for businesses including business setup, business support services, commercial representation, workforce solutions, and more.
LTC Business Services has a presence in Dubai, Georgia, Germany, Poland, Switzerland, and the UK.
Yes, LTC Business Services offers language support to foreign clients by speaking their language, so there’s no need to worry about language barriers.
LTC Business Services offers fresh formation, ready-made companies, and shelf-aged companies for business setup.
Yes, LTC Business Services is committed to maintaining lasting relationships with clients and provides ongoing support by keeping clients informed throughout the entire process.
