What EU funding programs are available for companies in Poland?

Companies in Poland can access EU funding primarily through the FENG program and regional operational programs. These provide non-repayable grants for activities such as innovation, digitalization, green transformation, and international expansion, with funding intensity ranging from about 30% to 80% of eligible costs.

How does Lithuania support businesses through EU funds?

Lithuania offers EU funding through its regional programs, supported by multiple EU funds and additional financing from the Recovery and Resilience Plan. These programs aim to strengthen economic growth, competitiveness, and sustainability, although the total funding pool is smaller than Poland’s.

What is the technology credit with a technology bonus in Poland?

The technology credit is a financing tool that combines a commercial loan with a non-repayable EU-funded bonus. After completing the investment and meeting conditions, a large portion of the loan—sometimes up to 70%—can be written off.

What soft loan options are available for SMEs in Lithuania?

Lithuania offers several soft loan schemes through ILTE, including Aviete loans, EP3 loans for young businesses, and Open Credit Fund 3 financing. These loans provide favorable terms, partial state funding, and flexibility for both investment and working capital needs.

Are there incentives for hiring employees with disabilities?

Yes, both Poland and Lithuania offer wage subsidies for hiring employees with disabilities. In Poland, subsidies are provided through PFRON and can cover a significant portion of wages, while in Lithuania similar subsidies exist but are currently limited due to funding shortages and stricter eligibility criteria.

What tax incentives are available for investment projects in Poland and Lithuania?

In Poland, the Polish Investment Zone allows companies to benefit from income tax exemptions based on their investment value. In Lithuania, companies can reduce taxable profits significantly or even benefit from long-term corporate tax exemptions for large-scale investment projects.

Doing Business in Poland & Lithuania: EU Grants and Soft Funding Explained

Summary

Companies in Poland and Lithuania can access various non-repayable or partially forgivable financial instruments, including EU grants, soft loans, wage subsidies for disabled employees, and "tax grants".
Poland benefits from a larger EU grant pool (approx. EUR 76 billion) through the FENG and regional programs, while Lithuania offers focused support through instruments like ILTE loans and supplements its funding with the Recovery and Resilience Plan (RRF).
Additional mechanisms include hybrid financing like Poland's Technology Credit (which can approach a 70% effective write-off) and long-term tax incentives such as the Polish Investment Zone and Lithuania's Investment Project Incentives, which can provide up to 100% Corporate Income Tax (CIT) exemption.

🎧 Prefer to Listen?

Get the audio version of this article and stay informed without reading - perfect for multitasking or learning on the go.

This article examines EU grants, soft loans, and wage subsidies available to companies in Poland and Lithuania. From flagship programs like Poland’s FENG and Lithuania’s regional operational programs to targeted instruments such as technology credits, ILTE loans, and support for hiring disabled employees, these measures provide businesses with non‑repayable or partially forgivable financial support.

Understanding these options is essential for planning investments, managing cash flow, and maximizing available public funding while expanding or modernizing operations.

EU Grants: FENG and Regional Programs

In the 2021–2027 EU financial perspective, Polish companies may apply for substantial non‑repayable grants with a cash pool of approximately EUR 76 billion. The flagship national program “Fundusze Europejskie dla Nowoczesnej Gospodarki” (FENG) and regional operational programs support R&D, innovation, digitalization, green transformation, and internationalization. Depending on company size, location, and project type, grant intensity can range from around 30% up to 80% of eligible costs.

The same EU funds investment program was launched for Lithuania as well. The program has a budget of almost EUR 8 billion, made up of the European Regional Development Fund, the European Social Fund, the Cohesion Fund, and the Just Transition Fund, to ensure long-term economic and social prosperity and the resilience and competitiveness of the Lithuanian economy.

It is considerably lower than the cash pool for Poland, but still a considerable investment. An additional EUR 3.85 billion was allocated to Lithuania’s Recovery and Resilience Plan (RRF) under NextGenerationEU, a separate and additional instrument created to support post-COVID recovery and accelerate green and digital transitions.

Technology Credit with Technology Bonus

In Poland, the technology credit is a hybrid instrument combining a commercial bank loan with a non‑repayable technology bonus. Once the investment project is completed and conditions are met, a significant portion of the loan principal can be written off using EU funds. For innovative projects, the effective write‑off can approach 70% of the financed amount.

“Pierwszy biznes – Wsparcie w starcie” and ILTE Financing Mechanisms

In Poland, the “Pierwszy biznes – Wsparcie w starcie” programme offers soft loans, advisory support, and the possibility of partial loan forgiveness (up to the equivalent of six average monthly salaries) for individuals starting a business or creating a new workplace. This instrument is particularly relevant for micro‑businesses and new entrepreneurs.

In Lithuania, there are similar financing mechanisms offered by ILTE, e.g.:

“Aviete loans” for SMEs where a share of state funds may reach up to 40%, but may not exceed EUR 50,000. These are granted for a period not exceeding 5 years (3 years for working capital).
Entrepreneurship promotion (EP3) loans for SMEs operating for up to one year, of up to EUR 25,000. The state may cover up to 80% of the loan amount, and the maximum loan duration is 10 years.
Open Credit Fund 3 (OFC3) loans - offer access to project finance on favorable terms at below-market prices to start up a new business or maintain and expand an existing one. Soft loans are offered to finance investments or working capital. There is no limit on the maximum amount of the loan. The share of OCF3 per loan must not be more than 75%, and in any event may not be in excess of EUR 750 thousand. The share of the financial intermediary’s own funds per loan must be at least 25%. The maximum period is 10 years.
Many other soft loans for specific business types or industries

Wage Subsidies for Disabled Employees (PFRON)

Employers who hire persons with disabilities can receive monthly wage subsidies from the State Fund for Rehabilitation of Disabled Persons (PFRON). The amount depends on the degree of disability and can cover a significant part of the employee’s cost. These subsidies are non‑repayable, provided the employment conditions and reporting obligations are met.

In Lithuania, employers hiring persons with disabilities can also receive monthly non-repayable wage subsidies. However, Lithuanian employers hiring persons with disabilities face growing challenges as state wage subsidy funds run low. Although EUR 26 million was allocated for subsidies in 2025, demand has outpaced funding, leaving many companies unable to employ disabled workers without financial support.

NGOs report that the situation is worsened by stricter eligibility rules, such as excluding firms with more than 250 employees, and requiring proof of no tax debts and low staff turnover. Employers argue that subsidies are essential because disabled employees often cannot work full shifts, yet funding has stagnated while the number of job seekers rises. As a result, companies are turning away candidates, creating significant barriers to employment for people with disabilities.

Polish Investment Zone as a “Tax Grant”

The Polish Investment Zone can be seen as a form of long‑term tax grant: although no cash is paid upfront, the company receives the right to exempt part of its future income from CIT or PIT, up to a cap based on eligible investment costs. In favorable cases, the present value of the tax exemption can equate to 60–70% of the investment value.

In Lithuania, there is a similar incentive for Investment Projects, where companies implementing qualifying investment projects can reduce taxable profits by up to 100% of the acquisition costs of new fixed assets (machinery, equipment, software, IP rights, etc.).

There is also a separate Large-Scale Investment Project Incentive offering for qualifying companies full CIT exemption for 20 years. With the latest amendment, this exemption is extended for 10 more years and applies to entities that start implementing large‑scale investment projects by December 31, 2035.

Conclusion

Polish and Lithuanian companies have access to a wide range of grants, subsidies, and partially forgivable financing instruments, helping to offset investment costs, support innovation, and encourage inclusive hiring. While Poland offers a larger funding pool through FENG and regional programs, Lithuania provides focused instruments such as ILTE loans and Investment Project incentives, ensuring that SMEs and growth companies can access tailored financial support.

In the next article of this series, we will focus on VAT regulations and strategic consultations, exploring how value-added tax obligations differ between Poland and Lithuania and how businesses can navigate compliance while optimizing their operations.