Today I want to talk to you about the pros and cons of doing business in Ukraine and Poland. Let me clarify right away: I’ve been living in Poland for 3 years and running my business here, and for the past 5 years, I’ve also been doing business in Ukraine. My company specializes in website development, consulting, and digital services. So, I have something to compare. And today I’ve prepared a brief overview to help you understand: where is it better to start and run a business?
Let’s start with the initial conditions for launching a business. Ukraine is clearly the leader here. And it’s not just about the tax system, business conditions, or other formal aspects. It’s about the environment that motivates you — the motivation “away from.” You’re trying to escape from something — poverty or chaos. I don’t know what your starting point is, but mine wasn’t great. I had an atmosphere that pushed me to act and hustle hard.
Now, a point in favor of Poland. It’s simple: “Play by the rules, and you’ll be fine.” No one will bother you, conduct unexpected inspections, or create unnecessary obstacles if you follow the rules. And that’s amazing — many people come to Poland specifically to run a business under normal, transparent conditions.
But when it comes to taxes, Ukraine significantly outperforms Poland. Especially if you know how to optimize them properly. A simple example — in Ukraine, I pay 5% in taxes. In Poland, even under the best circumstances, I’ll pay 18%. There are different options — some people pay a bit less, some a bit more. But overall, the tax burden in Ukraine is much lower than in Poland.
Tax benefits at the start
In Ukraine, you’ll rarely see any tax benefits, social packages, or support systems for new businesses. But in Poland, those things do exist. For example, during the first two years of running a business, you pay lower taxes and save on insurance. Also, there are different tax combinations depending on the type of product or service you offer.
On the other hand, Ukraine offers you access to a much larger market — the Russian-speaking market. Poland’s population is under 50 million people, while the CIS market exceeds 300 million people.
So, what does Poland offer in return? The startup industry! Business angels, incubators, coworking spaces, innovation hubs — this is just a small part of the Polish ecosystem designed to support startups. There are many examples of people receiving investments, launching their businesses, and growing successfully. If you’re interested in this topic, I recommend looking into it further.
But Ukraine also has a valuable business asset — a familiar mentality. And mentality plays a huge role, especially when it comes to your personal comfort. You understand the system’s nuances and loopholes, which makes your business more flexible and gives you additional tools to grow.
Another advantage I want to mention is EU grants and, overall, Poland’s support ecosystem — subsidies, innovation support, and more. I’ve seen real cases where Polish entrepreneurs received EU funding for their innovative ideas. And the best part — you don’t have to pay the money back, you just need to spend it properly.
Private entrepreneurship in Ukraine
In Ukraine, you can keep your business system simple by operating as a sole proprietor. Anyone already doing business knows that in many cases, it’s more profitable to work as a private entrepreneur rather than setting up a legal entity. What about Poland? To operate as a sole proprietor as a foreigner, you either need to be a student or have permanent residency. There are ways to do this through a Polish partner, but that requires combining different setups.
Another strong point in favor of Poland is its business infrastructure. For example, you can open a company online. You can view the full company history online — who the president is, who is on the board, what the share capital is, and what business activities are registered. The whole infrastructure is more organized, high-quality, and transparent. No complicated inspections, and the bureaucracy isn’t overwhelming.
But Ukraine has a counterpoint too. Foreigners can do business in Ukraine without needing a residence permit. In other words, it’s relatively easy to legalize your business in Ukraine. You don’t have to wait months to get residence documents, and you won’t be denied temporary residency as easily.
A reasonable tax authority
If you go to the Polish tax office to ask a question or get advice, you’ll receive a normal, respectful response. They’ll open the door for you, help you, give you advice, and direct you to the right inspector. Of course, if you’ve hidden 200,000 zł, the tax officials won’t be friendly. But overall, the Polish tax service works with “open arms.”
The final argument in favor of Ukraine is the low cost of business maintenance. Many Americans, Czechs, and Poles open businesses in Ukraine because it’s so inexpensive to operate there. Low taxes, lower salaries, cheaper office rent, low internet and telecom costs — all of it adds up.
And the last advantage of Poland that I want to share is access to the EU and global markets. If you’re working with the EU, you can open a euro account and collaborate with EU clients. All you need to do is report your transactions correctly and pay your taxes. That’s it — no complicated invoices, contracts, or extra bureaucracy.
With the U.S., the situation is almost the same. We’ve worked with American companies — everything was smooth, no extra questions asked. Currency conversion is done at the interbank rate. In short, it’s much easier to work with the EU and U.S. from Poland. In Ukraine, it’s still full of red tape and roadblocks.
