How do immigration, tax, and wage policies shape the competitiveness of CEE countries? Our comprehensive ‘Attracting talent: How CEE countries shape immigration and tax policies in the face of demographic challenges and labor shortages’ report brings together data and insights on personal income tax rates, minimum wages, and immigration incentives across the region—helping you understand the dynamics influencing talent attraction in Central and Eastern Europe.
Across Europe, the race for talent is intensifying. While Western Europe continues to draw skilled professionals with established pathways and higher wages, Central and Eastern Europe (CEE) is emerging as a region with both opportunity and urgency. Governments and employers alike are rethinking how immigration, tax, and labor policies can make CEE not just a place to work, but a place to stay and grow.
Immigration incentives on the rise
In recent years, several CEE countries have taken steps to attract international professionals and fill critical skill gaps. Fast-track residence permits, simplified work authorizations, and relocation incentives are becoming more common. Yet, progress remains uneven. Poland and the Czech Republic, for instance, have streamlined many processes, while others still face administrative complexity that deters potential talent.
For globally mobile professionals, transparency and predictability matter as much as incentives themselves. Countries that can offer clarity, speed, and a sense of welcome will have a distinct advantage in this increasingly competitive landscape.
Tax and compensation dynamics
Fiscal policy remains a key differentiator in the region’s competitiveness. Many CEE countries are increasing minimum wages to reflect rising living costs and to keep domestic talent from seeking opportunities abroad. At the same time, personal income tax (PIT) rates and tax-free thresholds vary widely, influencing both take-home pay and employer labor costs.
For international companies expanding in CEE, understanding these differences is not just about compliance, it’s a strategic advantage. Transparent communication about total compensation, combined with smart structuring of benefits and incentives, can significantly enhance a company’s attractiveness to skilled workers.
Demographic pressures mount
The demographic picture adds urgency to the discussion. Many CEE countries face a shrinking workforce and rapidly aging populations. The ratio of working individuals to retirees is expected to decline further in the coming decade, putting pressure on pension systems and economic growth.
Without proactive immigration and retention strategies, CEE economies risk talent shortages that could hinder innovation and competitiveness. The question is no longer whether countries should attract foreign talent, but how quickly they can adapt their systems to make it viable.
A regional balancing act
CEE’s long-term competitiveness will depend on how well fiscal policy, immigration frameworks, and social infrastructure work together. A low tax rate or quick visa process alone will not be enough. Skilled professionals are looking for stability, education opportunities for their families, and a sense of belonging.
For businesses, that means broadening the scope of talent strategy. It’s not just about recruitment—it’s about shaping environments where people can thrive. Engaging with policymakers, offering meaningful relocation support, and fostering inclusive workplaces can make a real difference.
Outlook: from talent exporter to talent destination
Central and Eastern Europe stands at a pivotal moment. The region has the potential to transform from a source of outbound migration into a true talent destination. Achieving that shift requires collaboration between business and government—and a mindset that values openness, agility, and long-term investment in people.
If CEE can align its immigration, tax, and labor policies around these principles, it can redefine its position on the European talent map: not as a low-cost alternative, but as a high-value ecosystem for innovation and opportunity.
Discover the numbers driving CEE’s talent landscape.
Our comprehensive ‘Attracting talent: How CEE countries shape immigration and tax policies in the face of demographic challenges and labor shortages’ report provides detailed country comparisons on personal income tax rates, minimum wage developments, immigration frameworks, and labor costs—all in one place.
If you have any questions, please reach out to your usual Vialto Partners point of contact, or the Vialto experts below:
Jadwiga Chorązka, Partner, Vialto Partners Poland
Emilia Piechota, Partner, Vialto Partners Poland
Joanna Narkiewicz-Tarłowska, Managing Director, Vialto Partners Poland
Grzegorz Ogórek, Director, Vialto Partners Poland
Source for all quotes in this article: Vialto Partners Report “Attracting talent: How CEE countries shape immigration and tax policies in the face of demographic challenges and labor shortages”; February 2025.
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