Popular investment vehicles in Poland

Investment vehicle

  • Specialised open-ended investment fund applying investment restrictions of closed-ended investment funds
  • Alternative investment company (“ASI”)
  • Closed-ended investment fund

1. Form

Specialised open-ended investment fund applying investment restrictions of closed-ended investment funds
  • Contractual
Alternative investment company ("ASI")
  • Joint stock company / LLC / EU company / limited partnership / limited joint stock partnership
Closed-ended investment fund
  •  

Contractual

2. Tax Treatment

Specialised open-ended investment fund applying investment restrictions of closed-ended investment funds
  • Partial exemption depending on the type of income (generally, investments into tax transparent entities are subject to CIT)
  • Tax at investor level
Alternative investment company ("ASI")
  • Exemption for income from exit (disposal of shares - parent-subsidiary type)
  • For other types of income, general taxation applies
  • Tax at investor level
Closed-ended investment fund
  • Partial exemption depending on the type of income (generally, investments into tax transparent entities are subject to CIT)
  • Tax at investor level

3. Transfer Tax

Specialised open-ended investment fund applying investment restrictions of closed-ended investment funds
  • 1% on non-tangible assets (e.g. shares in a Polish SPV) and 2% on tangible (e.g. RE located in Poland)
Alternative investment company ("ASI")
  • 1% on non-tangible assets (e.g. shares in a Polish SPV) and 2% on tangible (e.g. RE located in Poland) 
Closed-ended investment fund
  • 1% on non-tangible assets (e.g. shares in a Polish SPV) and 2% on tangible (e.g. RE located in Poland)

4. Listable

Specialised open-ended investment fund applying investment restrictions of closed-ended investment funds
  • No
Alternative investment company ("ASI")
  • Yes, to the extent that they issue shares
Closed-ended investment fund
  • Yes

5. Open- or closed-ended

Specialised open-ended investment fund applying investment restrictions of closed-ended investment funds
  • Open- or closed-ended
Alternative investment company ("ASI")
  • Open- or closed-ended
Closed-ended investment fund
  • Closed-ended

6. Regulatory Supervision

Specialised open-ended investment fund applying investment restrictions of closed-ended investment funds
  • Regulated by the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego)
Alternative investment company ("ASI")
  • Regulated by the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego), although, depending on the fund, the scope of supervision may be very limited
Closed-ended investment fund
  • Regulated by the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego)

7. Investor Restrictions

Specialised open-ended investment fund applying investment restrictions of closed-ended investment funds
  • Yes, limited to legal persons, partnerships, or individuals investing EUR 40,000 minimum
Alternative investment company ("ASI")
  • Yes, to professional investors
Closed-ended investment fund
  • Yes, limited to legal persons, partnerships, or individuals investing EUR 40,000 minimum

8. Best Feature

Specialised open-ended investment fund applying investment restrictions of closed-ended investment funds
  • No income tax at the fund level unless investments are made into tax transparent structures
Alternative investment company ("ASI")
  • Income tax exemption for disposal of portfolio shares
Closed-ended investment fund
  • No income tax at the fund level unless investments are made into tax transparent structures

9. Worst Feature

Specialised open-ended investment fund applying investment restrictions of closed-ended investment funds
  • Strong supervision of the Polish Financial Supervision Authority
Alternative investment company ("ASI")
  • Limitation of possible investors
Closed-ended investment fund
  • Strong supervision of the Polish Financial Supervision Authority

10. Best Used For

Specialised open-ended investment fund applying investment restrictions of closed-ended investment funds
  • Specific types of investors preferring highly regulated entities
Alternative investment company ("ASI")
  • Real estate investments
Closed-ended investment fund
  • Private investments in real estate
Trzos-Rastawiecki
Marek Trzos-Rastawiecki
Counsel
Warsaw