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Why You Should Invest in Polish Agriculture

Why You Should Invest in Polish Agriculture

Since it became a member of the European Union in 2004, Poland has become increasingly attractive for foreign investors. The Polish economy shows positive signs of change and growth and the general steady growth and development of the country guarantee that Poland will continue its progress.

Land purchase in Poland

Poland is an exporter of various foodstuffs and the terrain provides favorable conditions for growing different types of fruits, vegetables and livestock. 

Current legal provisions restrict foreign land ownership in Poland. Foreign investors can own land in Poland only if they purchase it through a Polish registered company. Investors that choose to open a company in Poland should know that the company needs to be 51% owned by a Polish national and the amount of land that can be purchased through an agricultural company is limited to 500 hectares of the state.

Foreign investors also have another option to purchase land in Poland. They can buy shares in an existing company that owns land privately. In this case, the foreign investor does not need to observe the rule for a 51% Polish shareholder.

This legal provision is expected to be withdrawn in May 2016, thus giving any foreign investor the possibility to buy land in Poland.

Polish Agricultural products

Poland offers favorable conditions for growing fruits and vegetables and livestock and is one of the largest agricultural farm states in the European Union.

The country is an important producer of cereals, rapeseed, grains, good quality fruits and vegetables. Various dairy products, beef, pigs and poultry are among the constant produce exported by Poland.

Prices for farmland vary according to their location and soil quality. Polish workers are skilled and can be employed for relatively low costs compared to other workforce populations around Europe.

On-going development in Poland

Poland has come a long way and is currently making progress in infrastructure and technological development. Its geographical position makes it a favorable route for transport and international trade. Therefore it could prove as an advantage for businesses to engage in agriculture production in Poland.

Although current investment conditions in the agricultural sector may seem too restrictive for foreign investors, Poland has made a commitment to become more open to business investments and its agricultural potential will continue to make the country an attractive business option.

For more details regarding the Polish agricultural sector or procedures for company formation in Poland, please contact our specialists.