Poland has held the position of one of Europe’s leading software development hubs for many years. Foreign investors are eager to establish research and development centers there, taking advantage of access to a highly qualified workforce, a stable legal environment, and numerous investment incentives. What is the reason for this? What drives this trend?
What makes Poland a favorable environment for the software development industry?
Investors are increasingly launching and continuing software development operations in the Polish market. What is the reason for this? What does the local market have to offer?
Highly Skilled Technical Workforce
Poland boasts a large pool of IT professionals—estimated at around 400,000 people—who have graduated from renowned technical universities or have several years of industry experience. Many of them also hold certifications confirming their expertise in the latest technologies and work methodologies.
Competitive Operating Costs
Employment costs in Poland are lower than in Western Europe (in 2024, the average hourly labor cost in Europe was €33.5, while in Poland it was €17.3[1]) This enables companies to optimize project budgets without compromising on service quality.
EU Membership and Legal Stability
As a member of the European Union, Poland offers access to the single European market and benefits from EU regulations. This provides predictability and legal security for investors.
Geographic and Cultural Attractiveness
Poland’s central location in Europe facilitates communication and logistics. Polish professionals are known for their strong command of English and a work culture that aligns closely with Western standards.
What Legal Forms Do IT Investors Choose?
The most common legal form chosen by foreign investors in the IT sector is the limited liability company (spółka z ograniczoną odpowiedzialnością – sp. z o.o.), which offers management flexibility and limited liability for shareholders.
Investors may also opt to establish a branch of an existing foreign company. The choice between setting up a branch and forming a new legal entity depends on the business strategy and the intended scale of operations.
For companies planning rapid growth, it is advisable to consider legal structures that facilitate investor onboarding and provide flexible shareholding management— such as joint-stock companies or limited partnerships.
In case of uncertainty, consulting with a specialized law firm in Poland is recommended to obtain answers to legal questions and to select the most suitable legal form of operation based on individual business needs.
Legal Regulations Relevant to Software Development – Polish Law Favors the IT Industry
Polish law provides detailed regulations that are crucial for the IT industry—especially in the area of copyright and intellectual property rights. For instance, Article 74(3) of the Act of February 4, 1994, on Copyright and Related Rights states that economic rights to a computer program created by an employee as part of their job duties belong to the employer, unless the employment contract provides otherwise[2]. Such detailed regulations promote transparent procedures and help minimize legal risks.
Polish law also enables the registration of trademarks and patents. This allows companies to effectively protect their products and technologies.
Employing IT Specialists
In the IT industry, various forms of employment are commonly used, including employment contracts, B2B contracts, and framework agreements. The choice of arrangement depends on the project’s nature and the preferences of both parties.
Polish labor law permits flexible forms of employment, but employers must still comply with certain obligations, such as ensuring the minimum wage and adhering to working time standards.
Companies should develop internal work regulations and policies concerning information security, the use of IT resources, and personal data protection.
Support for Foreign Investors
Poland offers preferential taxation of income derived from intellectual property rights through the IP Box scheme, allowing for a 5% corporate income tax rate.
Entrepreneurs can also benefit from tax exemptions under the Polish Investment Zone (PSI), which apply throughout the entire country regardless of location.
Additionally, government grants and EU funding are available for R&D and innovation projects.
M&A and Legal Considerations in the IT Sector
Mergers and acquisitions in the IT sector, particularly the acquisition of software houses, require comprehensive legal preparation. Key considerations include:
- a detailed review of client contracts,
- the legal status of owned intellectual property,
- and the employment situation of the target company.
Prior to finalizing the transaction, conducting due diligence is essential to identify potential risks and liabilities that may impact the safety and profitability of the deal.
Post-acquisition, effective integration of the acquired company into the investor’s existing organizational structure is equally important. This includes ensuring a smooth merger of teams, continuity of client services, and consistent internal and external communication.
Legal Services for Software Companies
Ongoing operations in software development require careful legal oversight. License and service agreements should clearly define:
- the scope of the granted licenses,
- the method of service delivery,
- the liability of each party, and
- possible penalties for contractual violations.
Additional protection is provided through confidentiality clauses and non-compete agreements. Including these in contracts with employees and business partners helps protect know-how, sensitive data, and client relationships from unauthorized use.
Companies using open-source components must also ensure compliance with applicable licenses. To that end, it is advisable to implement internal compliance policies governing the acquisition, integration, and distribution of open-source software—minimizing the risk of copyright infringement.
Poland stands out for its stable and predictable legal environment, which supports the growth of software development projects. Investors in the IT sector can count on a skilled workforce, administrative support, and a variety of fiscal and investment incentives. With proper legal safeguards and strategic planning, it is possible to successfully operate in this rapidly evolving sector.
References
-Eurostat, Hourly labour costs, 2024.
-The Act of February 4, 1994, on Copyright and Related Rights (Journal of Laws 2025.24, consolidated text).
-The Act of June 30, 2000 – Industrial Property Law (Journal of Laws 2023.1170, consolidated text).
-The Act of June 26, 1974 – Labor Code (Journal of Laws 2025.277, consolidated text).
-The Act of April 23, 1964 — Civil Code (Journal of Laws 2024.1061 consolidated text).Eurostat, Hourly labor costs, 2024.
[1] Eurostat, Hourly labor costs, 2024.
[2] Act of February 4, 1994, on Copyright and Related Rights (Journal of Laws 2025.24, consolidated text).