Poland is home to some of Central Europe’s most established companies, including PKO Bank Polski, PZU, ORLEN, KGHM, and Dino Polska.
For Indian investors willing to look beyond the usual destinations, Poland offers something different. It is a market that combines European stability with emerging-market growth. Consistent dividends, conservative management, and real economic momentum continue to define its investing landscape.
This guide explains how Indians can invest in the Polish stock market, the available routes under the RBI’s Liberalised Remittance Scheme (LRS), and practical ways to gain exposure through Warsaw-listed stocks, UCITS ETFs, US-listed ETFs, and India-domiciled international funds.
Table of contents
- Can Indians invest in Poland directly
- Directly buy Warsaw-listed stock
- US-listed Poland ETFs
- UCITS ETFs with Poland exposure (LSE / Xetra / Euronext)
- India-domiciled funds & ETFs with Poland exposure
- Taxation: How Your Returns Are Treated in India
- Why consider investing in Poland?
- Platforms that help Indians invest in Poland
- Conclusion
- FAQs
Can Indians invest in Poland directly?
Yes. Indians can invest directly in Warsaw Stock Exchange (WSE)–listed stocks and ETFs through the Liberalised Remittance Scheme (LRS), which allows up to USD 250,000 per person per financial year to be invested abroad.
The simplest route is to use a global brokerage platform that supports trading on the Warsaw Stock Exchange, such as Paasa or Interactive Brokers. These platforms manage compliance under LRS and let you invest in companies like PKO Bank Polski, ORLEN, KGHM, PGE, or Dino Polska, all part of Poland’s WIG20 index.
This means an Indian investor can open an account with a global broker like IBKR, remit funds abroad using the correct purpose code for equity investment, and legally purchase Poland-listed equities or ETFs.
The four practical routes to gain exposure to the Polish market are:
- Directly buy Warsaw-listed stocks
- US-listed Poland ETFs
- UCITS ETFs with Poland exposure (LSE / Xetra / Euronext)
- India-domiciled funds & ETFs with Poland exposure
Important to know:
- The annual LRS limit is USD 250,000 per individual.
- Remittances above ₹10 lakh per financial year attract TCS (Tax Collected at Source), tracked PAN-wise and collected by your bank when you remit.
- All foreign assets must be disclosed in your Indian Income Tax Return (ITR) under the foreign-asset schedule.
Directly buy Warsaw-listed stocks
The Warsaw Stock Exchange (WSE) is Poland’s primary stock market and the largest in Central and Eastern Europe. It includes blue-chip companies such as PKO Bank Polski, ORLEN, KGHM, PGE, PZU, and Dino Polska.
Indian investors can use global brokers under the RBI’s LRS to buy Polish-listed equities directly in Polish zloty (PLN).
Key points:
- Dividends: Poland levies a 19% withholding tax on dividends paid to non-residents. This can be reduced to 10% under the India–Poland Double Taxation Avoidance Agreement (DTAA) when the investor provides a valid Tax Residency Certificate (TRC) and is the beneficial owner of the shares.
- Capital gains: Gains from selling Polish-listed shares are treated as Polish-source income and are subject to a 19% capital gains tax. The India–Poland DTAA allows Poland to tax such gains, with a foreign-tax credit available in India for tax paid in Poland. For instance, if you make a ₹1.5 lakh profit on Polish shares, Poland charges a 19% tax on the gain, but you can offset this when filing taxes in India under the India–Poland tax treaty.
- Currency: Shares trade in Polish zloty (PLN), providing diversification from INR, USD, and EUR exposure.
Transaction costs: Standard brokerage commissions apply. There is no stamp-duty-style levy on Polish-listed equities. ETFs tracking Polish indices trade separately in USD or EUR markets. - Compliance: Investments must be funded under the LRS limit of USD 250,000 per individual per financial year, using the correct purpose code for overseas equity investment.
Pros:
- Direct ownership of leading Polish companies listed on one of Europe’s fastest-growing exchanges.
- EU-aligned governance standards and settlement through KDPW, Poland’s national clearing system.
- Fully compliant under India’s FEMA / LRS framework.
Cons:
- Dividends are subject to a 19% withholding tax, reduced to 10% under the India–Poland DTAA when the investor provides a valid Tax Residency Certificate (TRC).
- Liquidity can be lower in small- and mid-cap counters compared with U.S. or U.K. markets.
- Capital gains from selling Polish-listed shares are taxed in Poland at a flat 19%, with credit available in India under the tax treaty.
US-listed Poland ETFs
Another practical way for Indian investors to gain exposure to Polish equities is through ETFs listed in the United States.
US-listed Poland ETFs track the performance of the Polish equity market while trading on American exchanges such as the NYSE. The most popular and liquid option is the iShares MSCI Poland ETF (EPOL), which provides exposure to Poland’s largest and most actively traded companies across sectors such as banking, energy, materials, and consumer retail.
Unlike some other markets, Poland does not have actively traded ADRs on major US exchanges, so ETFs remain the most efficient USD-denominated route to participate in the Polish market under the Liberalised Remittance Scheme (LRS).
Popular examples:
- iShares MSCI Poland ETF (EPOL)
- Franklin FTSE Poland ETF (FLPL)
- SPDR MSCI Poland Quality Mix ETF (QPOL)
- VanEck Vectors Poland ETF (PLND)
Key points:
- Regulation: U.S.-domiciled ETFs are regulated by the U.S. Securities and Exchange Commission (SEC) and trade in USD on major American exchanges.
- Accessibility: Available through most global brokerage platforms, like Paasa or IBKR, that support U.S.-market access under LRS; no need for PLN or European accounts.
- Dividends: Subject to a 25% U.S. withholding tax on distributions to Indian investors (after W-8BEN filing; 30% if not filed). Underlying Polish companies face a 15% WHT at source (Poland–U.S. treaty rate, handled inside the fund).
- Capital gains: Not taxed in the United States for non-resident investors. Taxable only in India as short- or long-term capital gains depending on the holding period.
- Currency: All trades, settlements, and dividends occur in USD, removing PLN conversion risk and simplifying portfolio management.
Pros:
- High liquidity and transparent pricing on U.S. exchanges.
- Straightforward USD-based access to Polish equities under LRS.
- Single-ticket diversification across Poland’s leading sectors through the MSCI Poland Index.
Cons:
- Dividend distributions face two layers of withholding tax (≈15% in Poland + 25% in the U.S.), reducing net yields.
- The expense ratio of 0.58% slightly lowers long-term returns.
- Limited to one major fund (EPOL), creating concentration risk across Poland’s top 40–50 companies.
UCITS ETFs with Poland exposure (Europe-listed)
Another practical way for Indians to gain exposure to the Polish market is through UCITS (Undertakings for Collective Investment in Transferable Securities) ETFs domiciled in Ireland or Luxembourg.
UCITS ETFs are Europe-domiciled funds that allow investors to access international equities while being regulated under the UCITS framework. They trade on major exchanges such as the London Stock Exchange (LSE), Xetra (Germany), and Euronext (France/Amsterdam), and are designed specifically for global investors seeking diversified, tax-efficient exposure.
For Indian investors, UCITS ETFs are often the cleanest and most tax-efficient way to invest in Polish equities. They avoid the additional layer of U.S. withholding tax, automatically handle Polish dividend taxation within the fund, and provide exposure through single-country Polish ETFs or regional Central and Eastern Europe portfolios that include Poland’s leading companies.
Popular examples include:
- iShares MSCI Poland UCITS ETF (IE00B4M7GH52) – tracks the MSCI Poland IMI 25/50 Index; listed on LSE (USD/GBP) and Xetra (EUR).
- Xtrackers MSCI Emerging Europe UCITS ETF (DBX1EE) – provides regional exposure to Central and Eastern Europe, with roughly 25% weighting in Polish equities.
- Invesco MSCI Emerging Europe UCITS ETF (IE00B5SPMN66) – includes Poland, Hungary, and the Czech Republic; listed on LSE and Euronext.
To understand why UCITS funds can be a smarter choice for Indian investors, read our detailed guide: Why UCITS Funds Work for Indian Investors
Key points:
- Domicile and regulation: Typically domiciled in Ireland or Luxembourg, regulated under the UCITS Directive, and listed on LSE, Xetra, or Euronext in USD, GBP, or EUR.
- Availability on Paasa: UCITS ETFs are accessible under the RBI’s LRS, with seamless onboarding, consolidated reporting, and custody through top-tier European exchanges.
- Polish dividends: Dividends from Polish companies face a 15% withholding tax under the Poland–Ireland/Luxembourg tax treaties, handled within the fund before distribution. Investors receive clean, post-tax dividends in the ETF’s base currency.
- Tax in India: Dividends received from UCITS ETFs are taxable at the investor’s slab rate, while capital gains are taxed in India based on the holding period (short-term or long-term).
- Estate tax: No U.S. estate-tax exposure, since UCITS ETFs are EU-domiciled and not U.S.-situs assets.
Pros:
- Tax efficiency: UCITS structures eliminate U.S. estate tax and avoid double withholding on dividends.
- Diversified access: Direct exposure to Poland or broader Central-European markets within a single fund.
- Regulatory credibility: UCITS funds operate under strict EU investor-protection and transparency standards.
Cons:
- Accessibility: Most Indian brokers and fintech platforms focus on U.S. markets and don’t yet offer access to European-listed UCITS ETFs.
- Liquidity: On-exchange liquidity can be lower than U.S.-listed ETFs, particularly on Xetra and Euronext.
India-domiciled funds & ETFs with Poland exposure
A fourth route for Indians to gain exposure to the Polish market is through India-domiciled international mutual funds and ETFs that invest in overseas master funds holding European or Emerging Market equities that include Poland.
These schemes are SEBI-regulated and denominated in INR, meaning investors can participate without using the RBI’s Liberalised Remittance Scheme (LRS). The Indian Asset Management Company (AMC) collects investments in rupees and channels them to a foreign “feeder” or “master” fund, which then invests in underlying European or global securities, including Poland.
For many investors, this is the simplest, fully domestic route to participate in Central and Eastern European markets while remaining within India’s regulatory system.
Popular examples include:
- Edelweiss Greater Europe Offshore Fund – invests in the JPMorgan Funds – Europe Dynamic Fund (includes ~3–5% exposure to Poland).
- DSP World Emerging Markets Fund – feeder fund investing in BlackRock Global Funds – Emerging Markets portfolio (~2% exposure to Poland).
- Kotak Global Emerging Market Fund – invests in the Kotak Global EM master fund, which holds select Polish banks and energy companies (~2–4% allocation).
- PGIM Emerging Markets Equity Fund – feeder fund into PGIM Jennison EM Fund (~2–3% exposure to Poland).
Key points:
- Structure: SEBI-registered feeder or fund-of-fund schemes that invest in overseas master funds under RBI’s overseas investment limits for AMCs.
- Currency: Investors subscribe and redeem in INR; the AMC manages all FX conversion and cross-border compliance internally.
- Taxation: Returns are taxed in India as domestic mutual funds: capital gains depend on holding period (long-term >36 months = 20% with indexation; short-term = slab rate). Dividends, if any, are taxed at the slab rate.
- Convenience: No LRS paperwork, no foreign-broker account, and full eligibility for SIP/STP investment modes.
- Exposure: Underlying allocation to Poland may vary by fund – most “Europe” or “Emerging Market” schemes typically hold 2–5% in Polish equities.
Pros:
- No LRS remittance or foreign-broker setup required.
- Rupee-denominated; simpler tax reporting and SIP flexibility.
- SEBI oversight and Indian investor-protection framework.
Cons:
- Indirect exposure: fund managers allocate dynamically, and Poland weighting may change over time.
- Higher expense ratios due to dual management layers (domestic + master fund).
Taxation: How Your Returns Are Treated in India
When investing in Poland from India, returns are subject to two layers of taxation:
Foreign-side taxes, which include any withholding or capital gains taxes levied by Poland (or the fund’s domicile country), and Indian taxation, which is the final tax liability when filing your Income Tax Return (ITR) in India.
This structured comparison breaks down the tax implications across the four practical routes available to Indian investors.
Foreign-side taxes
Route | Asset Domicile | Dividend WHT at Source (Foreign) | Capital Gains Tax at Source | Estate Tax Exposure |
Direct WSE stocks | Poland | 19% withholding tax on dividends paid to non-residents under Polish law. Reduced to 10% under the India–Poland DTAA, if the investor is the beneficial owner and provides a valid Tax Residency Certificate (TRC). | 19% flat tax on gains from selling Polish-listed shares, as they are considered Polish-source income. Credit available in India under the tax treaty. | Exempt if both the decedent and the heir are non-residents and not Polish citizens. |
US-listed Poland ETFs | United States | Two layers: 15% Polish WHT at fund level (Poland–U.S. treaty rate; 19% if not applied) + 25% U.S. WHT on distributions to Indian residents (after W-8BEN; 30% if not filed). | None (0%) for non-resident aliens; the U.S. does not tax capital gains on marketable securities in most cases. | Yes. U.S. Estate Tax risk applies above USD 60,000 on worldwide U.S.-situs assets. |
UCITS ETFs with Poland exposure (LSE / Xetra / Euronext) | Ireland / Luxembourg | 15 % Polish WHT on underlying dividends (treaty rate under the Poland–Ireland/Luxembourg DTAA), handled inside the fund. No Irish/Luxembourg WHT on distributions to properly documented non-residents. | None (0%) – no Irish/Luxembourg capital-gains tax for non-resident investors. | None. EU-domiciled funds are not subject to U.S. or Polish estate taxes. |
India-domiciled funds / FoFs with Poland exposure | India | None at investor level. Any foreign WHT is adjusted at the scheme level; not withheld from the investor. | None (0%) abroad – units are redeemed in India; India-side rules apply. | None. Units are domestic Indian assets. |
Indian Taxation and Compliance
Assuming the investor is a resident individual in India (FY 2025–26 rules):
Route | Dividend / Distribution Income (India) | Capital Gains (Sale in India) | Foreign Tax Credit (FTC) |
Direct WSE stocks | Fully taxable in India under “Income from Other Sources” at your applicable slab rate. | STCG: taxed at slab rate if held ≤ 24 months. LTCG: 20% with indexation if held > 24 months. | FTC available for the Polish dividend WHT under the India–Poland DTAA. |
US-listed Poland ETFs | Taxable in India under “Income from Other Sources” at your slab rate. U.S. payer withholds 25% after W-8BEN submission (India–U.S. treaty, Article 10). | STCG: taxed at slab rate if held ≤ 24 months. LTCG: 20% with indexation if held > 24 months. | FTC available for U.S. 25% WHT and underlying Polish WHT embedded at fund level; file Form 67 on time to claim. |
UCITS ETFs (Distributing or Accumulating Class) | None directly received by investor if accumulating; distributions (if any) taxable as income at slab rate. | STCG / LTCG: 20% with indexation if held > 24 months; slab rate if ≤ 24 months. | No FTC needed, as Ireland/Luxembourg UCITS funds do not withhold tax on reinvested income or gains. |
India-domiciled Funds / FoFs with Poland exposure | Taxed in India at your income-tax slab rate. AMCs may deduct 10% TDS if annual dividend payout exceeds ₹5,000. | All gains taxed in India as per Specified Mutual Fund rules (post-July 2024): generally treated as short-term, taxed at slab rate. | No FTC: foreign taxes adjusted at scheme level; investors are not directly exposed to overseas tax. |
Why consider investing in Poland?
Dividend market: Poland has one of Europe’s strongest dividend cultures. Blue-chip companies like PKO Bank Polski, PZU, ORLEN, and KGHM maintain consistent payout ratios, with average yields in the 4–6% range, among the highest in the EU.
Stability: As a European Union member with its own currency, the Polish zloty (PLN), Poland combines regulatory stability with monetary flexibility. The market is supervised by the Polish Financial Supervision Authority (KNF) and operates under transparent EU-aligned governance standards.
Valuation advantage: Polish equities trade at P/E multiples around 10–12x, significantly below Western European averages. This makes Poland a compelling value opportunity within a developed legal and financial ecosystem.
Growth story: A fast-growing, consumption-driven economy, supported by EU funding (manufacturing relocation,nearshoring, and rising domestic demand), continues to strengthen corporate earnings across banking, energy, and retail sectors.
For Indians: A stable, dividend-oriented European market that complements India’s growth exposure with undervalued equities, steady income potential, and diversification into the EU’s most dynamic economy.
Platforms that help Indians invest in Poland
There are multiple platforms through which Indian investors can access Poland-listed stocks and ETFs. Some provide direct trading access to the Warsaw Stock Exchange (WSE), while others offer indirect exposure through US-listed ETFs (like EPOL) or UCITS ETFs listed in Europe. Below is a comparison of the leading options available to Indian investors.
Platform Access | |||||||
Direct access to Warsaw Stock Exchange (WSE) | ✅ | ✅ | ❌ | ❌ | ❌ | ❌ | ❌ |
UCITS ETFs (LSE / Xetra / Euronext) | ✅ | ✅ | ❌ | ❌ | ❌ | ❌ | ❌ |
US-listed Poland ETFs (EPOL) | ✅ | ✅ | ✅ | ✅ | ✅ | ❌ | ✅ |
India-domiciled funds & ETFs with Poland exposure | ✅ | ❌ | ✅ | ❌ | ❌ | ✅ | ✅ |
FEMA compliance support | ✅ | ❌ | ❌ | ❌ | ❌ | ❌ | ❌ |
Tax reporting support | ✅ | ❌ | ❌ | ❌ | ❌ | ❌ | ❌ |
INR-based analytics | ✅ | ❌ | ❌ | ❌ | ❌ | ❌ | ❌ |
Conclusion
For Indian investors exploring Europe, Poland stands out as a market that’s grounded, growing, and surprisingly rewarding. It combines the credibility of an EU economy with the flexibility of an independent currency and a long-standing culture of regular dividend payouts. From established names such as PKO Bank Polski, ORLEN, and PZU to broader access through UCITS ETFs and the iShares MSCI Poland ETF (EPOL), Poland stands out as a value-driven market for long-term, income-oriented portfolios.
Investing in Poland has also become more accessible than ever. Whether through Warsaw Stock Exchange listings, UCITS ETFs, US-listed ETFs, or India-domiciled international funds, each route is clearly defined and fully compliant under the RBI’s Liberalised Remittance Scheme (LRS). The choice comes down to selecting the right balance between exposure, tax efficiency, and ease of management.
Paasa enables investors to do this with confidence. With built-in FEMA and LRS compliance, tax-ready INR reporting, and a unified platform designed for Indian investors, Paasa makes investing across Poland and Europe both seamless and compliant.
About Paasa
Paasa is India’s bridge to global investing. It is trusted by HNIs, family offices, and institutions to diversify across markets in the US, Europe, China, Japan, and other global destinations.
What makes Paasa different is its India-focused compliance layer that supports every transaction:
- FEMA and LRS regulations are integrated within the platform, ensuring all cross-border investments remain fully compliant.
- Tax reports and analytics are customised for Indian investors, covering LTCG, STCG, dividend taxation, and TCS tracking.
- Remittance support and reconciliation are managed from start to finish, with dedicated assistance for compliance queries.
From global equities and ETFs to UCITS funds, managed portfolios, and RSU estate planning, Paasa offers one transparent platform that enables investors to build international portfolios while staying compliant in India.
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Disclaimer
This blog is intended for informational purposes only and should not be taken as investment, tax, or legal advice. The content is based on publicly available information and Paasa’s interpretation of current regulations, which may change over time. Investing in international markets carries risks such as currency fluctuations, regulatory updates, tax implications, and market volatility. Past performance is not indicative of future results. Investors are advised to consult their financial, tax, and legal advisors before making any investment decisions.
