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A Guide on Dividends in Poland

A Guide on Dividends in Poland

If you are thinking to diversify your investment portfolio, why not minimize your risk and add a steady flow of cash into your bank account by investing in dividend stocks in Poland? In this article, our Polish lawyers provide you with a brief guide on dividends in Poland.

What are dividends in Poland?

Dividends in Poland represent a part of company profits which are distributed to certain shareholders.

Dividends may come in the form of:

• cash;

• real estate, less often;

• stock.

The majority of companies which are stable offer dividends to their shareholders. Many times, the share prices of these corporations do not increase too much, therefore they offer dividends as a method of retaining and attracting investors.

Investing in dividend stocks in Poland can be a secure way of creating wealth for the long term, if choosing the right companies. Our lawyers in Poland can offer more information on what dividends in Poland.

Taxation on dividends in Poland

Dividends paid by a Polish company to a foreign one are levied with a 19% withholding tax rate. There are certain exceptions to this rule, as this dividend tax can be reduced by the existence of a tax agreement or if the dividends qualify for an exemption as ruled by an EU directive. Our attorneys in Poland can provide further details on what these exemptions may consist of and when they may by applied.

Advantages vs. risks of investing in dividends in Poland

The biggest advantage of investing in dividends in Poland is the fact that the investor is paid to own shares in a company. These payments, generally attributed quarterly to the investor, can be reinvested or used as a steady flow of income.

When it comes to the risks connected to dividend investments in Poland, they are minimal. Usually, when a corporation begins paying dividends to investors, the growth through acquisition of the company is generally limited. 

However, our Polish lawyers still consider that investing in dividends in Poland is one of the safest ways of investing, since they offer, as explained above, a secure income to the investor.

For more details related to what is a dividend in Poland, or for other corporate, taxation or investment legal advice, please contact our Polish law firm.