What does deregulation involve?
Deregulation is a process whose goal is to reduce the influence of the state on the market. This goal is achieved by reducing the number of regulations and simplifying them. The side effects of deregulation can vary. The most commonly cited include lowering the market entry threshold, increasing competitiveness, and – in a broader perspective – reducing the prices of certain products or services.
The first year of deregulation in Poland – 522 deregulation proposals for entrepreneurs
In Poland, deregulation is a term that has gained enormous popularity over the past several months. At the beginning of 2025, the government announced the launch of a deregulation initiative as part of the so-called “Year of Breakthrough.” Representatives of the #SprawdzaMY initiative joined the governing coalition in collaborative work. The role of entrepreneurs’ representative is fulfilled by Rafał Brzoska, entrepreneur and creator of the InPost brand.
As part of the deregulation work, those involved analyzed more than 16,000 citizen submissions. From this vast collection, the government received 522 proposals – though this did not happen all at once.
Throughout 2025 and the first quarter of 2026, 15 deregulation packages were submitted to the government. These packages contained detailed proposals for changes in law. 354 of them were accepted for implementation.
As of the current moment (as of March 2026):
- 193 changes have been adopted by the government.
- 126 of them have come into force and are already having a real impact on the lives of Polish citizens.
- A further 161 proposals are at various stages of government work – these projects will be implemented gradually, until all 354 changes come into force.
Important!
The first stage of deregulation – the so-called Deregulation 1.0 – covers the period from February 10, 2025 (the moment the initiative was launched) to February 2026. In 2026, the next phase of deregulation has already begun – analogously named Deregulation 2.0.
Deregulation 1.0 in a nutshell
All 193 changes accepted for implementation are listed and discussed in detail in the report “Deregulation. We are removing barriers, making life easier.” In this article we will present all of them, but will only discuss selected ones in more depth.
The deregulation projects were divided into 9 categories:
- Finance, taxes, and the capital market (37 changes).
- Digitalization of services (36 changes).
- Justice (11 changes).
- Energy and climate (11 changes).
- Education, science, health (21 changes).
- Administration and legislation (25 changes).
- Economic development (17 changes).
- Security (5 changes).
- Work and social policy (12 changes).
The last, tenth category highlighted in the report is “Changes vetoed by the President of the Republic of Poland.” This collection includes 18 changes that the government accepted for implementation, but for various reasons these projects did not receive the approval of President Karol Nawrocki. The government side announced, however, that these projects will return to parliamentary proceedings. They are set to reach the president’s desk once again at a later date.
The most important deregulation projects – implemented and in progress
Among the most significant simplifications that have already been launched, we will discuss a few from each category.
Readers interested in a full overview of the work of the Government Deregulation Team are referred to the report Deregulation. We are removing barriers, making life easier.
Group 1: Finance, taxes, and the capital market
37 changes were adopted in this group, the most significant being:
1. Exclusion of late interest accrual after the deadline for completing a tax or customs and fiscal audit has passed.
This is one of the most significant changes brought about by deregulation in Poland. Before this modification was introduced, taxpayers were required to pay late interest on tax arrears from the moment the liability arose until the conclusion of the tax or customs and fiscal audit. The problem intensified when the duration of the audit was prolonged for reasons beyond the taxpayer’s control.
The new regulations are more favorable to entrepreneurs – it has been established that if a tax or customs and fiscal audit lasts longer than 6 months, late interest is not accrued for the period exceeding 6 months from the date the audit was initiated.
The result of this change is a real reduction in the burden on entrepreneurs subject to an audit.
The change has been in effect since November 4, 2025.
2. Raising the VAT subjective exemption limit
Until this change was introduced, taxpayers benefited from the VAT subjective exemption if they did not exceed the sales limit of 200,000 PLN. The limit applied to the current and previous year. Since the time this limit was set (2017), the number of entrepreneurs entitled to benefit from the exemption had been systematically decreasing.
In 2026, the VAT subjective exemption limit was raised to 240,000 PLN.
This is a significant change that will enable many small taxpayers to benefit from the exemption. It means not only lower tax burdens, but also fewer obligations – an entrepreneur exempt from VAT does not need to issue invoices, settle VAT, or maintain full records of VAT-liable activities.
Interestingly, the amount of 240,000 PLN, although consistent with the EU’s so-called VAT Directive, still does not utilize its full potential. The VAT Directive allows the subjective exemption limit to be raised to a maximum threshold of 85,000 EUR. According to the NBP exchange rate as of October 1, 2025, this could translate into a limit of over 360,000 PLN.
The change has been in effect since January 1, 2026.
3. Raising the threshold for applying the Public Procurement Law
Since September 2019, Poland had one of the lowest thresholds in the EU for applying the Public Procurement Law – 130,000 PLN.
Due to inflation caused first by the pandemic and then by the war in Ukraine, the Government Deregulation Team proposed, and the Sejm decided to implement, raising the threshold from 130,000 PLN to 170,000 PLN. This means that a significant number of public contracts will not be subject to the Public Procurement Law, and therefore their initiators will not have to meet the rigorous obligations arising from the act, while procedures will be simpler and proceed more quickly.
The change has been in effect since January 1, 2026.
Group 2: Digitalization of services
This category includes improvements that will make it easier for taxpayers to handle administrative matters. Of the 36 changes adopted by the government in 2025, 18 are already in effect, while a further 18 have planned implementation dates or will be implemented in stages. Particularly significant deregulation changes in this category include:
1. Lease agreements in documentary form
Until 2025, lease agreements had to be concluded in written form under pain of invalidity. This meant that concluding such an agreement required more work and effort from both lessors and lessees. The process was further complicated by the fact that any amendments to the agreement also had to be made in written form.
Since July 2025, lease agreements in Poland can be concluded in documentary form – without the need to provide an electronic signature. Thanks to this change, concluding a lease agreement is faster and easier, and with a little effort from both parties, does not even require the taxpayer to visit the lessor’s branch.
The change has been in effect since July 13, 2025.
2. Easier access to entrepreneur data at ZUS and KAS
Taxpayers who want to verify the reliability of a potential contractor or business partner must prepare for a time-consuming process. Currently, it is necessary to:
- submit an application,
- wait for a response,
- pass the obtained information to the bank or involved financial institution.
The discussed change will expand the group of entities having access to obtaining specific data from ZUS. Banks, financial institutions, credit institutions, loan institutions, and other entities that are entrepreneurs verifying a contribution payer’s financial and/or economic situation will join this group.
The obtained data will enable the listed entities to determine the financial and economic situation of taxpayers, as well as verify whether the entrepreneur being checked:
- qualifies for a loan,
- is a reliable business partner or contractor,
- pays their ZUS contributions on time,
- has financial liquidity.
All of this information will be accessible to the listed institutions with the consent of the entrepreneur being verified.
The change will come into effect on January 1, 2028.
3. Equalizing the validity of electronic and paper documentation
The digitalization process in public administration had been ongoing for many years, and the change from September 2025 marks its culmination. Offices are equipped with appropriate devices and operate according to established standards, making it possible to equalize the validity of electronic documentation with traditional documentation.
People who need to handle administrative matters can do so in the vast majority of cases electronically – without visiting offices, filling out similar applications at different branches, or delivering paper documents.
The change does not yet apply to all public services, but their number has clearly increased in recent years. One of the significant indicators of the changes introduced is the central repository of information on public registers.
The change has been in effect since September 9, 2025.
Group 3: Justice
Court cases are associated with long resolution times, high procedural costs, and a high degree of complexity. Thanks to the efforts of the Government Deregulation Team, 11 changes were adopted in 2025, of which 7 have already been implemented.
1. Simplification of appeal procedures in administrative proceedings
Until now, filing an appeal against a ruling or a complaint to the Provincial Administrative Court had to be preceded by submitting a request to the issuing authority for reconsideration of the case.
Thanks to deregulation, it is now possible to file a complaint without a prior request for reconsideration.
The change has been in effect since July 13, 2025.
2. Lowering the upper limit of the proportional court fee for a pleading
Exemption from court costs was granted relatively rarely. Courts refused to grant entrepreneurs exemptions, often citing the fact that the entrepreneur had funds in their bank account, or even that their partners or shareholders had such funds.
Capital companies wishing to apply for exemption from court costs therefore had to demonstrate on their own initiative that the partners or shareholders did not have the funds to recapitalize the company or provide a loan.
Courts also frequently failed to take into account situations in which an entrepreneur had to accumulate funds to cover the cost of the entry fee for a statement of claim.
The new regulations lowered the upper limit of the proportional court fee from 200,000 PLN to 100,000 PLN. This applies to cases concerning property rights where the value of the subject of the dispute or appeal exceeds 20,000 PLN.
The change has been in effect since September 23, 2025.
Group 4: Energy and climate
Deregulation in the area of energy and climate aimed to accelerate investments, reduce administrative obstacles, and simplify procedures.
Particularly significant deregulation changes in this category include:
1. Accelerating connections and unblocking connection capacity
Entrepreneurs who plan investments are often blocked by the lack of grid infrastructure in the location where they wish to invest. Even companies with adequate funds and ready to invest their own resources in building appropriate grid infrastructure have so far been unable to do so – the regulations do not account for such a situation.
This will not change, although the social stakeholder proposal stated that introducing the possibility for entrepreneurs to finance transmission lines could prove beneficial for both companies and the state.
The government proposed a somewhat different solution. The planned change is intended to accelerate the processing of connection applications and increase the availability of connection capacity. The solution is expected to be the elimination of reserving connection capacity for unrealized projects. These block access to the grid and prevent the launch of further – often more promising – investments.
The change is currently being processed in the Sejm – no implementation date has been set yet.
2. Making information about available capacity public, simplifying the procedure for submitting applications for connection to the energy grid
Currently, entrepreneurs who plan to connect to the energy grid must prepare to fulfill many formal obligations and submit numerous applications. On top of all this, in many cases the deadlines for submitting applications remained undefined, which led to a significant lengthening of procedures.
With the introduction of the planned changes, companies will be required to publish information about available capacity online. The number of required documents will also decrease, and the application submission procedure will be significantly simplified and fully digitalized. Deadlines for responses will also be established, meaning that an entrepreneur, at the moment of submitting their application online, will be able to estimate when they can expect a response and when their project will be able to move on to the next phase of implementation.
The change is currently being processed in the Sejm – no implementation date has been set yet.
Group 5: Education, science, health
Reduced administrative burdens, simpler procedures, and order in formal requirements for schools, universities, research units, etc. – these were the goals set before the Government Deregulation Team. What is the situation after the completion of the first stage of deregulation?
21 changes were passed for implementation, of which as many as 16 came into force in 2025.
1. Abolition of the obligation to enter information about investments up to 100,000 PLN into the POL-on system
Until now, entities within the higher education and science system were required to prepare reports on nearly all investment projects – regardless of their value. Thanks to the introduced changes, research institutes and universities are only obligated to report investments to the POL-on system when the cost of the investment exceeds 100,000 PLN.
The change has been in effect since September 9, 2025.
2. Submitting a request to the EC to restore the possibility of financing prototypes in R&D projects
Since 2024, the rules for financing the costs of building prototypes, pilot lines, and demonstrators in research and development projects had been aligned with the provisions of Art. 25 GBER. This meant that only the depreciation costs in this area could be deducted.
However, the change introduced as part of deregulation is not the final resolution of this matter – the Ministry of Funds and Regional Policy presented an official position to the European Commission. The document proposed enabling the financing of costs incurred in the process of constructing prototypes and demonstration lines – on the condition that they are used in R&D projects and not for commercial purposes.
The change has been in effect since October 2, 2025.
Group 6: Administration and legislation
This is a particularly significant group of changes for entrepreneurs, which includes deregulations that are important and significantly affect the functioning of Polish companies.
As part of the deregulation work, the focus was placed on greater predictability, simplification of administrative proceedings, and reducing the effects of delays on the part of the administration.
25 changes were accepted for implementation, of which 18 have come into force, while a further 7 are awaiting implementation.
1. Introduction of the possibility of independently choosing the termination date of a third-party liability insurance contract
A compulsory insurance contract concluded for a vehicle or building forming part of a farm had until now been valid from the date of conclusion until the date of expiry. This meant that a buyer of a vehicle with valid third-party liability insurance could not terminate the contract with the current insurer and conclude a more favorable one – they first had to wait for the current contract to expire.
Since 2025, significant changes have taken place in this regard – buyers can now choose the termination date of the third-party liability insurance contract concluded by the previous owner. This applies not only to motor vehicle third-party liability insurance, but also to farmers’ third-party liability insurance for owning a farm and compulsory insurance of farm buildings against fire and other random events.
The new regulations naturally exclude the possibility of indicating a retroactive date.
The change has been in effect since September 10, 2025.
2. Introduction of the possibility of resolving irremovable doubts in favor of the taxpayer
In tax proceedings initiated ex officio, regulations introducing the resolution of doubts in favor of the taxpayer had long been absent – this principle had only functioned in the context of legal doubts.
As part of the deregulation work, the principle of resolving irremovable factual doubts in favor of the taxpayer was introduced for tax proceedings initiated ex officio.
It is worth noting that this principle does not apply if the case involves parties representing conflicting interests or when the outcome of the proceedings directly affects the interests of other persons. The presumption of innocence will also not be applied when an important public interest is opposed to it.
The change has been in effect since November 4, 2025.
3. Introduction of a 6-month vacatio legis for tax bill drafts containing unfavorable solutions for taxpayers
Entrepreneurs had been demanding a resolution to the issue of insufficient protection of taxpayers against sudden changes in regulations – especially those introducing solutions unfavorable to taxpayers. The lack of an adequately regulated period for adapting to the introduced changes poses a considerable obstacle for companies.
The solution proposed by the social stakeholders is the introduction of at least a 6-month vacatio legis for bill drafts containing solutions unfavorable to taxpayers.
The change is currently being processed in the Sejm – no implementation date has been set yet.
Group 7: Economic development
Running a business and carrying out investments should be simpler. This was precisely the assumption from which the Government Deregulation Team started, resulting in 17 changes accepted for implementation. Of these, as many as 13 have already come into force and are functioning within the Polish legal order.
1. Expansion of the definitions of craft and craftsman
The long-outdated definitions of craft and craftsman required changes to enable those interested to conduct business activity in the area of craft.
The new definitions meet contemporary standards and enable craftsmen to conduct business activity, among other things, in the form of a capital company – when at least one of the partners holds professional qualifications in the craft and applies them in the conducted activity. Opticians and prosthetists have been added to the list of crafts and craftsmen.
The change has been in effect since July 13, 2025.
2. Abolition of the obligation to annually report the tax status of general partnerships
Until the end of 2025, general partnerships were required to submit information about partners holding rights to participate in the company’s profits. This obligation was necessary to maintain the status of a transparent entity for CIT tax purposes. On top of this, the law contained a provision stating that the information must be submitted “before the start of the financial year,” which raised doubts among taxpayers.
The introduced changes abolished the discussed obligation – submitting information about partners is now only mandatory when there has been a change in the composition of partners and their share in the company’s profits.
The change has been in effect since January 1, 2026.
3. Elimination of certain barriers in the Construction Law
The Construction Law contains many regulations whose existence proved unnecessary. Many provisions clearly delayed investments, and the regulations concerning derogations from technical conditions proved unnecessarily complicated.
The amendment to the Construction Law led to the elimination of some of these barriers. The possibility of exemption from the obligation to obtain a building permit decision was introduced in certain cases, and the requirement to obtain consent for derogation from technical conditions in the context of reconstruction or change of use of existing structures was also abandoned.
The introduced changes will enable investors to act more quickly in the context of constructing and reconstructing structures.
The change has been in effect since January 7, 2026.
Group 8: Security
Deregulation activities in the area of security focused primarily on streamlining procedures and clarifying rules. The priority in this case, however, was to maintain safety standards. Within Deregulation 1.0, 5 changes were introduced.
1. Measures to counteract credit fraud
Banks and financial institutions had until now been unable to verify the identity of counterparties by comparing the photograph on the identity document presented by the customer with the photograph stored in the Personal Identity Document Register. The new changes give these entities access to the RDO database, which increases the security of data and funds in customer accounts.
The change has been in effect since August 9, 2025.
Group 9: Work and social policy
Facilitations in the context of employment and access to benefits, as well as simplification of procedures – these were the goals guiding the deregulation activities in the context of changes in group 9. In 2025, 12 changes were passed for implementation, of which 9 have already come into force.
1. Shorter inspections of micro-enterprises and frequency limits
Although inspections are something of an inconvenience for all companies, they had a particularly significant impact on the functioning of micro-enterprises. Inspections lasting up to 12 working days could seriously hinder the conduct of business activity during that period. Moreover, inspectors applied the provisions of the Entrepreneurs’ Law, which allowed inspections to be extended without a deadline – it was sufficient to cite the desire to counteract crimes as a reason.
With this in mind, the social stakeholders proposed shortening the duration of inspections of micro-entrepreneurs and introducing additional restrictions. These proposals were accepted and implemented.
Currently, the maximum duration of inspections of micro-entrepreneurs at the company’s registered office is 6 working days (instead of 12). Extending the inspection to 12 working days is possible, but only in a situation where the inspecting authority wishes to analyze documents – it can then do so at the authority’s registered office, without disrupting the company’s work.
Another very significant change is the introduction of three risk categories (low, medium, high). Information about the risk category assigned to a company is public, and each category indicates, among other things, the maximum frequency of inspections at a given company:
- low-risk companies – inspection at most once every 5 years,
- medium-risk companies – inspection at most once every 3 years,
- high-risk companies – no restrictions.
Moreover, inspecting authorities must deliver a preliminary list of required documents to the company before the start date of the inspection – this will ensure that inspections proceed more smoothly.
The change has been in effect since July 13, 2025.
2. Amendment to the rules for paying the equivalent for unused annual leave
In the event that it was necessary to pay an equivalent for unused annual leave, the employer was required to transfer the funds to the employee on the day the employment contract expired or was terminated. A minor change, introduced as part of deregulation, means that the deadline for paying the equivalent is now linked to the employer’s payroll date. In a situation where the payroll date falls before the expiry or termination of the employment relationship, the employer pays the equivalent within 10 days of the end of the collaboration.
This is an organizational change, but one that will make it easier for companies to settle accounts with employees.
The change has been in effect since January 27, 2026.
3. Change to the method of determining the revenue limit for unregistered business activity
The revenue limit for unregistered business activity until the end of 2025 was 75% of the minimum wage – this amount applied to monthly revenue due. Such a shape of the regulations meant that businesses often lost their unregistered business status due to a slight excess of revenue (for example, in a slightly better month).
Under the current regulations, the monthly limit has been replaced by a quarterly limit. This is a change that will make it easier for entrepreneurs to maintain the status of unregistered business activity, without the need to “monitor” monthly revenue for fear of losing the status.
The change has been in effect since January 1, 2026.
Group 10: Changes vetoed by the President of the Republic of Poland
18 changes did not receive the President’s signature. Among them were government projects such as:
- A simple electricity bill.
- Refraining from penalizing taxpayers and accountants for unintentional errors and mistakes.
- Rationalization of the scale of penalties in commercial transactions.
Some of the vetoed projects – in accordance with the government’s announcements – will return in a different, improved form. Work is currently underway on changes to the bill drafts so that the doubts raised by the president can be addressed.
The government’s further plans – Deregulation 2.0
Deregulation 2.0 – this is the term used by the government when announcing the next steps within the program. However, this is not merely a change of number. The Minister for Oversight of Government Policy Implementation, Maciej Berek, announced further stages of deregulation work. These are to focus on systemic changes that will not only remove or modify unnecessary regulations, but also put in place “filters through which overregulation that later needs to be regulated out will not be created.”
Currently, the three most important items on the agenda of the deregulation teams and the #SprawdzaMY initiative are:
- and finally, returning to the projects rejected by presidential vetoes.
- analysis of the remaining 170 proposals that have not yet been accepted for implementation,
- bringing to completion the projects that have not yet come into force,
Summary
The deregulation in Poland, which has been underway for over a year, is a very broadly conceived process that has the potential to permanently change the legal landscape in our country. The long-term effects of the efforts of the individuals and entities involved in Deregulation 1.0 and 2.0 will, however, only become visible in the coming months and years. All indications suggest, however, that the Government Deregulation Team still has its hands full and that this state of affairs will not change in the near future.
