Foreign businesses are more likely to keep their profits in Poland than transfer them abroad. In 2020, they reinvested PLN 44 billion, that is as much as 52% of their earnings.
Poland is becoming an increasingly attractive destination for foreign investors. In 2020, through their enterprises operating in Poland, foreign investors generated profits of PLN 84 bn.
Out of that amount, as much as 52% (PLN 44.2 bn) was kept in Poland and reinvested in the growth of the Polish branches.
This is the highest figure since at least 2003, the first year for which comparative data of the National Bank of Poland are available. To put into perspective, only a few years ago the reinvestment rate usually reached about 25–40%.
The rise in reinvestments takes place mainly at the expense of declining dividends. Foreign businesses are less and less willing to pocket the profits made in Poland. In 2020, the amount transferred abroad in the form of dividend totalled PLN 32.5 bn, equivalent to 39% of their net income. In nominal terms, this is the lowest figure in five years, and percentage-wise – the lowest since at least 2003, that is in the entire history of the study. For the sake of comparison, in 2010–2015 the dividend rate on the income earned by foreign investors amounted to 45–62%.
