There are many obligations when it comes to inheriting property in Poland. The confirmation of inheritance acquisition itself is only the tip of the iceberg. The inheritor must remember about verification and regulation of the property’s legal status. Another crucial thing to remember is the tax on inheritance and gifts. Who can inherit property in Poland? What should an inheritor prepare for? We will discuss the answers to these questions in this article and provide information about our inheritance support package.
Table of Contents
- Inheritance of property in Poland – who can inherit?
- Inheritance of property in Poland and the confirmation of the inheritance’s acquisition
- Responsibilities of the new owner of a property in Poland
- Inheritance of property in Poland and the tax on inheritance and gifts
- Inheritance and gifts – tax-free amounts
- Inheritance of property in Poland and property tax relief
- Inheritance in Poland – legal support
- What is the scope of our services related to Polish inheritance proceedings?
Inheritance of property in Poland – who can inherit?
Anyone who has legal capacity can become an inheritor of property in Poland. This is what the provisions of the Civil Code say. A natural person who is not alive at the time of opening the succession, cannot be an inheritor. This is also the case with legal persons that do not exist at that time. However, a child that has already been conceived when the succession is opened can be an inheritor if it is born. Having that in mind, every person that is eligible to inherit under the Act or the will may become an inheritor.
Property in Poland may be inherited either under the statutory right or under a will. In the case of inheritance under the will, the inheritance is given to a person indicated by the testator. If the will does not specify how to distribute the estate, the executor of the inheritance decides about it. If there is no will, the inheritance results from the Act. The provisions of the Civil Code regulate the rules of statutory inheritance.
Inheritance of property in Poland and the confirmation of the inheritance’s acquisition
Confirmation of the inheritance’s acquisition in Poland may occur in two ways:
- as a result of court proceedings – court decision on the acquisition of inheritance,
- as a result of a proceeding before the notary public – an inheritance certificate in the form of a notarial deed.
The Civil Code states that the court issues a decision on the acquisition of inheritance in Poland without a trial. The court examines ex officio who qualifies as a potential inheritor and whether the testator left a will. The decision on the acquisition of inheritance must relate to all the inheritors. Moreover, it must refer to the entire estate. It is impossible to decide on the acquisition of inheritance only with regard to its parts.
To establish who and to what extent inherits after the testator, one can also contact a notary public. The Notary Public Act states that he can prepare a certificate of inheritance in Poland. This concerns both statutory and testamentary inheritance. The only exception is succession based on special wills. All inheritors must be present simultaneously in the notary’s office. The notarial certificate of inheritance may be created only if there is a joint request for certification of inheritance. A notary public cannot undertake actions leading to determining the group of inheritors. The notarial certificate of inheritance relies on declarations of the existence or non-existence of persons who would exclude known heirs from inheritance or persons that would inherit together with them. It is also based on wills made by the testator, or the lack thereof. Such a statement requires the inheritance protocol.
Responsibilities of the new owner of a property in Poland
The court confirmation of the acquisition of inheritance or the notarial inheritance certificate is not the end. There are other obligations related to inheriting property in Poland.
The change of owner should be indicated in the land and mortgage register of the property. To do that, the inheritor must request the entry of the property right in the land and mortgage register. The application must be submitted on a dedicated form [PL: KW-WPIS]. It is subject to a fee in the fixed amount of 200 PLN.
Inheritance of property in Poland and the tax on inheritance and gifts
According to the law, inheritance of real estate in Poland is subject to taxation – namely the tax on inheritance and gifts. The tax obligation occurs when the court issues the decision on the acceptance of inheritance. Alternatively, after the registration of the inheritance certificate by a notary public.
The value of the tax determines the tax group to which the inheritor belongs. Belonging to the group depends on the inheritor’s personal relationship with the testator.
The classification to a particular tax group is as follows:
- group I- spouse, descendants, ascendants, stepchild, son-in-law, daughter-in-law, siblings, stepfather, stepmother, parents-in-law,
- group II – descendants of siblings, siblings of parents, descendants and spouses of stepchildren, spouses of siblings and siblings of spouses, spouses of siblings of spouses, spouses of other descendants,
- group III –other acquirers.
The tax is calculated based on the surplus of the tax base over the tax allowance, according to art. 15 of the Act on the inheritance and gifts tax. In the event of inheriting property in Poland, the tax base is its pure value. The condition of the property on the date of its acquisition determines it. Another factor is the market price on the date on which the tax obligation occurred.
Inheritance and gifts – tax-free amounts
The tax-free amount for each of the tax groups is as follows:
- 9.637 PLN –if the acquirer belongs to tax group I
- 7.276 PLN – if the acquirer belongs to tax group II,
- 4.902 PLN – if the acquirer belongs to tax group III.
One should also remember about the tax exemption from article 4a of the Inheritance and Gift Tax Act. Inheritance of property in Poland by a spouse, descendants, ascendants, stepchild, siblings, stepmother and step-father under certain conditions is exempt from the tax on inheritance and gifts. This applies if they report the inheritance of property to the tax office. They must do it within 6 months after the court’s decision on the acquisition of the inheritance.
Those who accepted the inheritance have further obligations. They have to notify the competent tax office. One should do that within a specified time to avoid financial penalties. One should report the inheritance of property within 6 months after the court’s decision on its acquisition.
This regulation relates to the people exempt from the tax, based on article 4a of the Act on the inheritance and gifts tax. Those who have to pay the tax have one month for reporting inheritance and for settlement of the tax.
One must pay the tax within 14 days from the date of a decision determining the tax amount from a tax authority.
Inheritance of property in Poland and property tax relief
The inheritors who are obliged to pay the tax on the inheritance of property in Poland may use the so-called property tax relief. The art. 16 of the Act on inheritance and gifts tax regulates it.
Using the tax relief is possible under the condition that the inheritor:
- is not the owner of another real estate and is not granted e.g. a cooperative ownership right to a property,
- is not a tenant of another property,
- will reside in the acquired real estate, as a registered permanent resident,
- will not sell the inherited real estate for 5 years.
An additional restriction is the size limit of the inherited property. Using the tax relief, the inheritor will not pay the tax on the property with a residential area below 110 m22. In the event of inheriting a property with a larger area, the inheritor will pay the tax on the pure value of the area exceeding 110 m2.
In the case of purchasing a share in a property, the tax relief is applicable according to the size of the share.
Inheritance in Poland – legal support
You inherited a real estate or any other substantial asset in Poland and you do not know what to do next? You are not alone – every year our law firm receives dozens of requests for representation in inheritance proceedings and assistance in managing and/or liquidation of assets left by the testator. Our clients’ have plenty of questions about the consequences of inheriting assets in Poland to name only a few:
- What is the tax rate of inheritance tax in Poland which I shall pay on the inherited assets?
- Can you help me deal with all the formalities related to the inheritance proceeding in Poland without me having to travel to your country?
- What is the market value of the assets which I inherited in Poland?
- I do not have any relatives in Poland who could help me in taking care of inherited assets, can you be my proxy to help me in day-to-day management of inherited assets in Poland?
To whom we address the inheritance in Poland support package?
Our service is addressed in particular to all the successors who:
- Inherited assets located in Poland;
- Inherited assets after a testator who, at the moment of his death, lived in Poland;
- Are not Polish speaking or they feel more comfortable in communicating in English;
- Leave abroad
Why should you choose CGO Legal as your attorneys for the inheritance in Poland?
By using our services you can be sure that the inheritance proceeding will be performed with minimum engagement from your side in a most efficient and legally compliant manner. We will need your envolvement only on the most important decision making stages of the proceeding. If you are looking for somebody who will deal with everything that is related to the inheritance in Poland you are in the right place.
What is the scope of our services related to Polish inheritance proceedings?
By deciding to use our service of Polish inheritance support you will get:
- Full, comprehensive advise on the most efficient way to complete the inheritance proceeding;
- Information on the inheritance tax rate applicable in your case together with the instruction on when and where should you pay your tax;
- Assistance of team of qualifiied attorneys-at-law able to represent you in the court proceeding as well as before the notary public;
- Assistance in English;
- Assistance in managing the inherited assets (e. g. renting or selling an inherited real estate);
- Assistance in establishing the current market value of the inherited assets;
- Full support in all the formalities related to running the inheritance proceeding in Poland.
What do you get in the service of inheritance in Poland legal support?
We provide the service inheritance support in following steps:
- Initial consultation – we provide you with our recommendation on the most effective way of conduct in your case;
- Asset valuation (on request)
- The inheritance proceeding – we provide you with complete assistance throughout the court or notary proceedings;
- Asset management – assistance in management or liquidation of the inherited assets.