The European market is interesting to foreigners not only for business purposes. Some foreigners view trading as one of the methods of earning in Poland. However, more experienced investors recommend considering long-term investments for stable earnings. Watch the interview with Denis, who has figured out the investment topic and will talk about the important points for beginners.
Trading in Poland — How to Start Investing
People from various groups can buy stocks in Poland. Financial operations of this type can be done even as a university student. There is no need to gather significant capital to start. You can start buying stocks with just $50 in your account. The key is to invest in shares of different companies (electric cars, IT businesses). This helps minimize the risk of “burning out.” Over time, as capital grows, you can start increasing turnover — expanding the portfolio by adding bonds from various companies.
To earn from investments in Poland, you need to understand how the mechanism of buying and selling securities works:
- If the bonds of one company attract several traders, their price will rise. The investor needs to choose the right moment when it is most profitable to sell their portfolio. The difference between the buying and selling price is the profit.
- The second type of profit comes from buying dividend stocks. The company pays its bondholders a certain percentage of the securities’ value. Each corporation has its own system for accruing and paying dividends.
For investment, it is necessary to choose the right broker (the company that will buy securities on behalf of the foreigner). Today, this role is handled by special programs that you need to register with. Brokers can be divided into official (licensed) and unofficial ones. It’s also important to clarify the commission fee you will need to pay for the intermediary’s services.
Broker Registration Procedure
The registration process on the broker’s website is straightforward. The future investor will be asked to provide a passport. It can be issued by any CIS country. However, there is one important nuance — the future investor must be a taxpayer in the Republic of Poland. In most cases, simply providing a PESEL number is not enough. You must present any document proving that the person is indeed in Poland and not outside of it. A bank statement from a Polish bank, showing periodic transactions, will work.
After registration, before buying stocks in Poland, you need to top up the account on the broker’s site. There are nuances here as well. For example, the minimum deposit amount varies depending on the chosen funding method.
Taxation Features for Investors
The profits of foreign investors in Poland are subject to taxation. It depends on the chosen broker. If a foreigner registered with a Polish intermediary’s website and bought (sold) stocks, they need to visit the tax office every year and report these operations by filling out a special form.
Successful Investment in Poland: Main Rules for Successful Investing
To earn on the stock market, you need to follow several simple rules:
- Do not buy stocks haphazardly.
- Develop your own investment strategy and stick to it. It should include things like the amount you are willing to invest in bonds and whether you are ready to invest more if needed.
- Buy stocks of companies with a promising business plan. If you don’t believe in the corporation’s profitability plan, there’s no point in considering it as an investment option.
To make your investments in Poland profitable and to become a successful investor in the stock market, it’s important to understand the principles of trading and study the theory. Consultants are available to help beginners who have already figured out the essence of profitable investments in various companies’ securities.
