The latest edition of Polish Wprost magazine has an article titled “The Great emigration of Polish capital.” Poland has been encompassed by a grass roots taxpayers’ revolt. Many business-oriented Poles are moving their operations – and money earned at home – to countries with lower tax rates.

Only last year, more than 12 billion zloties, roughly three billion euros, in potential revenue had drifted out of Poland. This marks a four-fold increase in as many years. Specialists warn this is just the beginning of a mass exodus in a desperate attempt to avoid the greedy Polish tax system.

But Polish capital is heading towards Cyprus, Malta or Caribbean countries not only because of lower tax rates. Equally important are greater economic stability, lesser administrative barriers or more developed infrastructure, not to mention lower labour costs.

Also, countries with much higher tax rates than Poland, such as Belgium, The Netherlands, Denmark or Sweden can be attractive for Polish capital when applying participation exemption mechanisms. These allow avoiding double taxation on, for instance, dividends, the magazine said.