When Lithuanian companies start thinking about expansion beyond the Baltic market, the instinct is often to look west: Germany, the Netherlands, or Scandinavia.
In practice, the most logical next market is much closer.
For Lithuanian companies that have already optimized their domestic market, Poland offers something rare: a larger, fast-growing economy that operates within the same EU framework but with far greater scale.
“CEE is often discussed as a single bloc, but the opportunity structures within it are very different. Poland operates at a scale that changes what’s possible for a company that has already optimized its home market. It’s not just bigger, it’s a different category of market.”
— Piotr Pawłowski
Why Poland Is the #1 Expansion Market for Lithuanian Companies
Poland Is 12x the Size of Lithuania and Plays by the Same Rules
Something has shifted in how serious European executives think about market selection. Location no longer just means logistics and time zones. It means asking: where is it safe to build long-term?
Poland’s answer to that question is unusually clear.
One of the most important and underappreciated arguments for Poland as an export destination is its growth headroom.
Lithuania’s GDP per capita is currently around 10% higher than Poland’s relative to the EU average; a sign of how far Lithuania has converged economically. But Poland has 38 million people to Lithuania’s 3 million, and is the sixth-largest economy in the EU by nominal GDP.
That scale translates into something tangible for expanding companies: deeper industrial supply chains, a larger B2B buyer base, stronger demand for professional services, and more developed logistics and distribution networks.
At the same time, Poland already absorbs over 10% of Lithuanian exports, ahead of Germany, the Netherlands, and every other trading partner, and it’s not just because of geography. It reflects a combination of market scale, regulatory alignment, and economic momentum that’s hard to match anywhere else in Europe and certainly not at this proximity.
Poland Is One of Europe’s Most Secure Places to Build a Business
The economic relationship between the two countries has been historically very strong, but in 2026, it got even stronger.
Earlier this year, Lithuania proposed creating Europe’s first cross-border economic zone with Poland, focused on defence and technology near the Suwałki Gap. Though the details are still being worked out, the direction is quite clear: deeper integration, more shared infrastructure, and a stronger bilateral business environment.
Poland’s Investment Zone programme already offers tax relief, infrastructure support, and simplified administrative processes to companies establishing operations there, and Lithuanian companies qualify.
Add to that the EU single market framework, mutual recognition of professional qualifications, and aligned employment rules, and the barriers to entry are lower than in almost any non-Baltic expansion market.
For a Lithuanian CEO thinking about where to plant a flag, this matters in a specific way. Poland is not just geographically close, it’s also politically committed, militarily capable, and strategically integrated with NATO and the EU at a level that makes it one of the most stable operating environments in the region.
The risk calculus for building operations there looks very different from markets further east.
The Polish Market: Structural Demand, Not a Lucky Window
Poland is the largest business services hub in Central and Eastern Europe, with over 1,800 shared services and outsourcing centres employing more than 430,000 professionals.
“As the economy continues converging toward Western European levels, investment in technology, logistics, manufacturing, and professional services keeps growing. For companies selling services, technology, or operational solutions, that’s structural demand, not a window that opens and closes.”
— Rafał Chmura
Where Lithuanian Companies Find the Strongest Foothold in Poland
IT and software services
Both markets share CEE talent characteristics: strong engineering education, competitive cost structures relative to Western Europe, and high English proficiency. Lithuanian IT firms can compete effectively in the Polish market and use it as a reference base for further European expansion.
Laser technology and photonics
Lithuania is a global leader in industrial laser technology, with over 60 companies focused on R&D in this space. Polish manufacturing in sectors like automotive, aerospace, and electronics can be active buyers of precision photonics.
Professional and HR services
As Polish companies scale internationally and international companies expand into Poland, demand for talent acquisition, EOR, B2B contracting support, and workforce solutions is structurally strong. This is a market TalentPlace knows well.
Food and agriculture
Lithuania is the EU’s largest surimi exporter and a significant dairy and meat exporter. Poland’s large food retail sector, with its distribution networks and high volumes, is a natural buyer.
Energy and petroleum products
The GIPL gas interconnector is now operationally significant. Lithuania’s Mažeikiai refinery (the only refinery in the Baltic states) has historically exported refined petroleum products to Poland and neighbouring markets, and this corridor is rapidly growing.
“The Polish market rewards companies that commit to it. It’s competitive and fast-moving, but the buyer base is large and sophisticated enough that there’s room for strong entrants. Lithuanian companies often arrive with exactly the right positioning: high quality, EU-native operations, and cost competitiveness compared to Western Europe.”
— Piotr Pawłowski
The Hiring Reality: What Most Lithuanian Companies Don’t See Coming
The macroeconomic case is easy to make. It’s the operational reality where things get complicated.
Expanding to Poland means hiring in Poland. You can’t run Polish operations effectively from Vilnius. Sales cycles, client relationships, and day-to-day operations all require people on the ground. That’s where many Lithuanian companies underestimate what’s ahead of them.
Poland’s unemployment rate currently sits at around 5-6%. In big cities like Warsaw, Kraków, or Wrocław, demand for experienced professionals consistently outpaces supply, and slow hiring processes lose talent to faster-moving local companies. Getting the first few hires wrong, or taking too long to make them, is a setback that takes months to recover from.
And the sectors where Lithuanian companies most commonly expand are the same sectors with the tightest talent in Poland. Knowing where to look, what to offer, and how to structure employment is central to whether the expansion works.
“The biggest mistake we see is companies assuming their home employment model transfers directly to Poland. It doesn’t. Polish labour law has specific requirements, and ZUS compliance alone catches a lot of foreign companies off guard. Starting with an EOR gives you time to build the business before committing to a full local entity.”
— Piotr Pawłowski
Poland has its own Labour Code, its own social security system (ZUS), and its own rules governing the boundary between employment contracts and B2B contracting arrangements.
B2B is common and legal, but Polish authorities apply strict criteria to assess whether arrangements are genuine. Misclassification carries real financial penalties, and foreign companies without local legal guidance are frequently caught out.
For Lithuanian companies in the early stages of expansion, an Employer of Record arrangement is often the cleanest starting point.
An EOR employs your people on your behalf, handles all Polish payroll and ZUS compliance, and gives you an operational team in Poland before you’ve committed to a local legal entity. It creates space to build the business before taking on the full administrative infrastructure of a Polish subsidiary.
How TalentPlace Helps You Hire in Poland (Without the Compliance Risk)
TalentPlace is a recruitment and workforce partner operating across CEE, with direct experience in the Polish market and a track record of supporting international companies entering it.
Read also: Case study: Uniqa – RPO service for leading insurance group in CEE region
Recruitment
We source and place candidates across IT, professional services, operations, and commercial functions throughout Poland. Our network of over 400 specialist recruiters gives us sourcing depth and speed that’s hard to replicate for a company new to the market.
Employer of Record
We employ your people in Poland, manage all compliance, and give you an operational team from day one, without the overhead of a Polish subsidiary.
B2B contracting support
We help structure compliant B2B engagements with Polish IT contractors that hold up under regulatory scrutiny.
“Our role is to remove uncertainty for companies entering the Polish market. You already know Poland is attractive, the real challenge is understanding employment law, compensation levels, and how to structure the first hires. That’s where experience makes a difference.”
— Rafał Chmura
For Lithuanian companies ready to scale beyond the Baltics, Poland presents a uniquely compelling opportunity. It is a large, fast-growing economy on Lithuania’s doorstep, operating within the same EU framework and already the country’s biggest export partner. Few markets offer such a strong combination of proximity, scale, and momentum.
For companies ready to scale beyond the Baltics, the opportunity is there, the key challenge is execution, particularly hiring.
FAQ
- Why is Poland considered a secure market for business expansion?
Poland is NATO’s highest defence spender by GDP share (4.7% in 2025), hosts significant allied military presence, and has made long-term investments in border security and military modernisation. It also has strong political consensus on EU and NATO membership, making it one of the most stable operating environments in the region.
- Can a Lithuanian company hire in Poland without opening a local entity?
Yes, through an Employer of Record. The EOR employs workers on your behalf, handles all Polish payroll and ZUS compliance, and gives you an operational team in Poland before you’ve set up a local subsidiary.
- How competitive is the Polish talent market?
Very. National unemployment is rather low, and demand for experienced IT and professional services talent in major cities consistently outpaces supply. Process speed, competitive compensation, and employer branding all directly affect outcomes.
- What is the biggest compliance risk for foreign companies hiring in Poland?
For most international companies, the real risk is not Polish employment law itself. Poland’s labour law is relatively clear and predictable. The problem arises when companies try to replicate hiring models from other markets, especially contractor-heavy tech hiring, without understanding how Polish authorities interpret them.
Working with a partner that understands the local labour market helps companies hire in Poland safely and avoid costly mistakes.
- How does Polish business culture differ from Lithuanian?
Polish culture is faster-paced, more broker-driven, and more price-competitive than what Lithuanian companies are typically used to. Preparation, local partnerships, and clear value positioning matter a lot.
- How can TalentPlace support Lithuanian companies expanding to Poland?
TalentPlace helps companies build and manage cross-border teams, structure compliant employment arrangements in Poland, and source the talent needed to establish and scale local operations. Contact us to discuss your expansion.
