As running costs climb in core Western European markets like Germany and France, more cross-border sellers look to Central and Eastern Europe. Poland is the region's growth engine and logistics hub; Romania is the EU's cost basin. What are their strengths, and how do you choose? This guide does the maths.
Why CEE deserves serious consideration
The core appeal of CEE is the dual advantage of "cost" and "location": corporate tax, labour and warehousing costs are generally lower than in Western Europe, while still inside the EU single market so goods move freely to Germany, France, Italy and other large markets. For sellers with squeezed margins, placing a company or warehouse in CEE is a pragmatic cost strategy.
Poland: logistics hub and the Allegro ecosystem
Poland is one of CEE's largest economies, superbly located — bordering Germany to the west, reaching the Baltic to the north, a natural transit point between Western and Eastern Europe. Many Amazon Pan-EU sellers have stock automatically split into Poland, creating a Polish local VAT obligation. Poland also has its own e-commerce giant, Allegro, with very high local penetration.
Romania: cost basin and eMAG
Romania's biggest label is "low cost" — labour, office and warehousing costs are among the lower in the EU. For businesses driven mainly by operating cost, a Romanian SRL is a high-value base. The regional platform eMAG leads in Romania and nearby countries.
- Pan-EU logistics transit, Pan-EU splitting triggers Polish VAT → Poland Sp. z o.o.
- Lowest operating cost, entering SE European regional markets → Romania SRL
Do not only watch the tax rate
- Language and local handling: Polish and Romanian administrative processes are a real barrier without a local team.
- Bank account opening: some CEE banks scrutinise foreign-company accounts and need local support.
- Accounting and filing: local rules differ from Western Europe and need familiar accountants.
- VAT trigger point: even if the company is registered elsewhere, holding local stock in Poland/Romania creates a local VAT obligation.
Why Pan-EU sellers cannot avoid CEE
Many sellers meet CEE "passively": once you enable Amazon Pan-EU, the platform auto-splits your stock into Poland, Czechia and others for delivery speed. From that moment, those countries have a local VAT obligation. So for Pan-EU sellers, CEE is not "whether to consider" but "must handle" — Polish VAT registration is often the first stop. Handle compliance first, then optimise for cost.
FAQ
Does a CEE company reduce my overall EU tax?
It may lower operating cost, but tax is computed by where business actually happens and multi-country rules. Do not assume "registered in a low-tax country means less tax overall". Plan around your actual sales distribution.
I already have a German company, do I need a Polish one?
It depends on whether you hold local stock or operate in Poland. Pure cross-border sales to Polish consumers can be covered by OSS; local warehousing needs Polish local VAT or even an entity.
CEE is a strong choice for cost reduction and regional expansion, but registration is only step one. VAT compliance, local warehousing and marketplace onboarding are what make the business truly run in these markets.
Further reading • Landing guidePoland / Romania company registrationCEE company registration, VAT and local landing→