The basic form of state aid offered to entrepreneurs in LSEZ is income tax exemption with regard to income from business activity conducted in the zone. The condition of receiving such a tax exemption is obtaining the permit granted by the Zone Manager.

The amount of aid depends on capital expenditures incurred by the investor related to the new investment, as well as on the size of the enterprise.

The maximum allowable state aid intensity for large companies is equal to 25% of capital expenditure, for medium-sized businesses it is increased to 35%, while small enterprises are entitled to as much as 45%.

Capital expenditures include investment costs eligible for state aid or two-year labour costs of the newly employed; both aspects must be related to the new investment conducted within the zone.

Capital expenditures qualifying for state aid constitute the costs of investment reduced by the calculated VAT and excise tax (where deductible under separate regulations) incurred within the zone before the date of declared investment project completion stated on the permit, including:

  • the purchase price of the land or of the right of perpetual usufruct
  • the purchase price or cost of manufacturing fixed assets
  • the cost of expansion or modernisation of existing fixed assets
  • the purchase price of intangible assets
  • the cost of renting or leasing of land, buildings and structures lasting a minimum of 5 years in case of large investors or 3 years in case of small and medium-sized investors
  • financial leasing costs relating to the acquisition of other assets than land, buildings or structures


The two-year labour costs of the newly employed include employee gross remuneration costs increased by compulsory contributions, such as social security contributions paid by an entrepreneur from the date of employment of the employees. Exemption from income tax on legal and natural persons is granted for the period from the month in which the entrepreneur incurred capital expenditures or employment costs, until the limit of state aid amount is reached.


Other forms of state aid, such as e.g. EU subsidies, exemption from local taxes on property and buildings, grants and loans granted by local labour offices to entrepreneurs for the purpose of creating new workplaces and trainings for previously unemployed persons are aggregated and reduce the actual level of income tax exemption accessible to the entrepreneur.