Inheriting property, whether it’s real estate, a vehicle, or financial assets, comes with certain tax obligations in Poland.
Our article offers comprehensive guidance on the Polish inheritance tax, including instances where the tax may not apply and how to report your inheritance to avoid penalties.
Learn the necessary steps to manage your inheritance effectively and stay compliant with Polish tax regulations.
Did you inherit an apartment or a car? Or maybe a larger sum of money or valuable items? You should remember that receiving an inheritance in Poland is connected with the obligation to pay inheritance tax in Poland. Below, we present all the information you need to have about the inheritance tax in Poland including situations in which the tax on inheritance and gifts will not have to be paid. You will also learn what steps should be taken to avoid negative consequences from the tax office if you failed to pay the tax on time.Understanding the nuances of “inheritance tax in Poland” is essential for those who have become beneficiaries of an estate within the country. The Polish tax system mandates certain rules and regulations regarding the inheritance tax that must be adhered to by the inheritor. This tax applies to a wide array of assets, including money, real estate, cars, and other valuables.The obligation to pay “inheritance tax in Poland” does not arise immediately upon the death of the testator. It is typically triggered at the point of acceptance of the inheritance, either through a court decision or via a notary public, depending on the circumstances of the inheritance proceedings. Failure to report the acquisition of inheritance to the appropriate tax authority on time can lead to adverse consequences, and the tax office may enforce penalties.There are certain allowances and exemptions within the “inheritance tax in Poland” that can alleviate the financial burden on the inheritor. These are contingent upon the relationship between the benefactor and the beneficiary, categorized into different tax groups. For instance, close family members may receive a full exemption from the inheritance tax, subject to the condition that the acquisition is reported correctly within the stipulated time frame.The “inheritance tax in Poland” is structured to encourage timely and accurate reporting, and it offers a structured approach to determining tax obligations. Beneficiaries are advised to gain a clear understanding of their specific tax group, the relevant tax allowance amounts, and the proper method of reporting to ensure compliance with Polish tax laws.Navigating the “inheritance tax in Poland” can be a complex process, especially for those unfamiliar with the tax system. It is often beneficial to seek legal support to ensure all aspects of the inheritance process are managed effectively. Professional advice can be invaluable in understanding the tax implications of your inheritance and ensuring that all procedures are followed correctly to avoid any unnecessary tax liabilities.In conclusion, while the “inheritance tax in Poland” can seem daunting at first, with the right information and guidance, inheritors can fulfill their obligations with confidence. It’s crucial to be well-informed about the tax rates, exemptions, and reporting requirements to manage your inherited assets in Poland effectively.Inheriting property, whether it’s real estate, a vehicle, or financial assets, comes with certain tax obligations in Poland.Our article offers comprehensive guidance on the Polish inheritance tax, including instances where the tax may not apply and how to report your inheritance to avoid penalties.Learn the necessary steps to manage your inheritance effectively and stay compliant with Polish tax regulations.Inheritance tax in Poland
Inheritance tax in Poland table of contents
How to calculate the inheritance tax in Poland?
If the value of the inheritance or gift exceeded the tax-free amount, the first step is to determine its value. The value of inherited or donated goods as well as belonging to a particular tax group will affect the amount of inheritance tax in Poland.The tax is calculated based on the surplus of the tax base over the tax allowance. The method of its calculation is presented in the table below:Excess in PLN The tax amounts to
Over Up to
From acquirers belonging to the tax group I
10 278 3%
10 278 20 556 308.30 PLN and 5% of the excess over 10 278 PLN
20 556 822.20 PLN and 7% of the excess over 20 556 PLN
From acquirers belonging to the tax group II
10 278 7%
10 278 20 556 719.50 PLN and 9% of the excess over 10 278 PLN
20 556 1 644.50 PLN and 12% of the excess over 20 556 PLN
From acquirers belonging to the tax group III
10 278 12%
10 278 20 556 1 233.40 PLN and 16% of the excess over 10 278 PLN
20 556 2 877.90 PLN and 20% of the excess over 20 556 PLN
Inheritance tax in Poland – tax rates
Inheritance tax in Poland – who has to pay it?
As a rule, the tax on inheritance or gifts charges either a testator or a beneficiary. Seemingly, there is no room for doubt here. In practice, however, many people wonder at what point they become inheritors. Does it happen at the time of the testator’s death, or only at the time of issuing (or perhaps becoming final) the decision confirming the acquisition of inheritance?Inheritance tax in Poland rules
People who acquired something through inheritance have to pay inheritance tax. Nevertheless, the obligation to pay the tax does not arise at the moment of the testator’s death. Depending on circumstances, it becomes binding:at the moment of validation of the decision concerning the acquisition of inheritance, if the inheritance proceedings were pending before the court, or
at the moment of registering the certificate of inheritance if the inheritors decided (and had such a possibility) to resolve the inheritance issues in the presence of a notary public.
Nonetheless, you have to keep in mind that if the acquisition of inheritance has not been reported for taxation, the tax obligation arises as soon as the taxpayer declares the fact of its acquisition before a tax authority or tax inspection authority.Inheritance tax in Poland
Inheritance tax in Poland – who can avoid it?
Two factors determine whether a person has a chance to avoid paying the inheritance tax in Poland. The first one is the amount of the so-called inheritance tax allowance. The second one – concerns which inheritance tax group the inheritor or the beneficiary belongs to. Both of the factors are interrelated because the amount of the tax allowance varies depending on the specific tax group to which one belongs.Do you need inheritance legal support in Poland?
Did you inherit assets in Poland and don’t know what to do next? Contact us today and get a free quotation for our services.Inheritance tax in Poland. Tax groups
Belonging to particular groups depends on the degree of kinship between the person acquiring the inheritance and the testator. There are three tax groups:Tax Group People belonging to the tax group
I spouse (the present one), spouse during separation, descendants (son, daughter, grandchildren, great-grandchildren), ascendants (e.g. mother, father, grandparents), siblings, stepchild, stepfather, stepmother, parents-in-law, son-in-law, daughter-in-law
II descendants of siblings (e.g. niece, nephew), siblings of parents (e.g. uncle, aunt), descendants and spouses of stepchildren, spouses of siblings (e.g. sister’s husband), siblings of spouses (e.g. wife’s brother – brother-in-law), spouses
III all persons not included in the previous two groups, including those unrelated to the recipient.
Inheritance tax in Poland – tax groups
From the 27th of October 2020, the Inheritance and Gift tax Act also identifies as descendants people who stay or have stayed in a foster family, in a family orphanage, in an educational care facility or in a regional care and therapy centre referred to in the Act of 9 June 2011 on Family Support and Foster Custody System. Accordingly, people being a foster family, operating a family-type orphanage or working with children in an educational care facility or in a regional care and therapy centre are ascendants.Inheritance tax in Poland
What is the amount of the tax allowance for each group?
Inheritance tax in Poland is not imposed on an inheritance or a gift with a value which does not exceed:The value Tax group
9.637 PLN if the acquirer is classified in the tax group I
7.276 PLN if the acquirer is classified in the tax group II
4.902 PLN if the acquirer is classified in the tax group III
Inheritance tax in Poland – free of tax amounts
There is no obligation to pay the tax if the value of the inheritance or gifts does not exceed the tax-free amount. Only the acquisition of inheritance or gift exceeding the tax-free amount is subject to taxation.Inheritance tax in Poland. Reporting inheritance to the tax office
Anyone who receives goods or intangibles for free should file an SD-3 form and pay tax on inheritance and gifts.However, after acquiring an inheritance from a close member of a family, you should submit the declaration on an SD-Z2 form. This form, together with instructions on how to fill it, can be downloaded from the official website of the Ministry of Finance.What happens if the taxpayer reports the fact of acquiring an inheritance or gift but not on the official form? According to the Minister of Finance, it is unacceptable for the tax authorities to deny the right to exemption when the taxpayer reports goods or property rights to the competent head of the Tax Office in a different way than the SD-Z2 form. Consequently, it is sufficient to report the inheritance in writing or in the record of acceptance.Inheritance tax in Poland
Inheritance tax in Poland. Who does not have to report the inheritance to the tax office?
As a rule, anyone is exempt from the obligation to report an inheritance as long as he/she:acquired within 5 years from one person – as inheritance or otherwise –property of the total value not exceeding tax allowance,
received an inheritance or a gift from the closest family and is subject to full tax exemption (in such case you should submit the SD-Z2 form).
In the event of receiving an inheritance from the immediate family, persons who have received property whose value does not exceed 9,637 PLN are exempt from the obligation to report the inheritance or gift to the tax office. At the same time, what is counted here is the value of the property received within 5 years from one person including all gifts and inheritance together.Which tax office is competent for reporting the inheritance tax in Poland?
The choice of the relevant tax office for submitting the form by the inheritor depends on what was included in the inheritance.If the inheritance included real estate, the competent tax office is determined by its location. This rule also applies if the real estate is only one of the components of the inherited property. In other cases, you should submit the form should to the competent tax office based on the last place of permanent residence of the testator. If there was no such place – based on his or her last place of stay.Deadline for reporting the inheritance to the tax office
You should submit the SD-3 form within one month from the moment when the tax obligation arose. In case of inheritance, the moment of tax obligation is counted from the date on which the decision on its acquisition becomes final or from the moment a notary registers the inheritance certificate.On the other hand, when it comes to the SD-Z2 form submitted by members of the closest family, the deadline for submission amounts to 6 months from the moment the tax obligation arose.Inheritance tax in Poland
Inheritance tax in Poland – tax exemption for the members of the closest family
When acquiring goods or property rights through inheritance by a spouse, descendants (children, grandchildren, great-grandchildren), ascendants (parents, grandparents), stepchildren, siblings, stepfather and stepmother, the inheritor may claim the total exemption from tax on inheritance and gifts. However, the exemption does not apply to inheritance when the testator’s death occurred before the 1st of January 2007.The condition that must be met in order to use the exemption is to report the assets acquired as a result of inheritance to the tax office. As was mentioned before, the inheritors have 6 months for that from the moment of the court’s decision confirming the acquisition of the inheritance, or from the date of registration of the inheritance certificate by a notary public.Need inheritance legal support in Poland?
Did you inherit assets in Poland and don’t know what to do next? Contact us today and get a free quotation for our services.Inheritance tax in Poland. When you do not need to report the inheritance?
The reporting obligation does not apply to cases when the market value of the acquired inheritance does not exceed the tax-free amount. The principle of accumulation of the value of property acquired recently from the same person and in the period of 5 years preceding the acquisition of the inheritance should be taken into account here. Currently the value amounts to 9 637 PLN.An exception may appear when the inheritor becomes aware of the inheritance after six months from the date on which the tax obligation arose. Then the exemption applies when the inheritor reports these goods or property rights to the head of the tax office within 6 months from the date of receiving information about coming into the inheritance. The only condition is to provide evidence that the inheritor learned about the inheritance later.If the acquisition of property through inheritance is not reported within the indicated time frames, then it is subject to taxation on general principles.If this article was interesting for you and you want to know more on the topic it concerned we encourage you to contact us. Specialists from our law firm in Poland, will be happy to help. If you are interested in company registration in Poland visit our dedicated landing page.FAQ on inheritance tax in Poland
What is inheritance tax in Poland?
Inheritance tax in Poland applies to properties acquired through inheritance, including real estate, vehicles, and financial assets.Who is liable to pay inheritance tax in Poland?
The tax is generally charged to either the testator or the beneficiary, depending on specific circumstances.How is inheritance tax calculated in Poland?
It’s calculated based on the value of the inheritance and the tax group the inheritor belongs to, with rates varying based on the excess over the tax-free amount.What are the different tax groups for inheritance tax in Poland?
There are three tax groups, differentiated by the degree of kinship between the inheritor and the testator.What is the tax allowance for each group?
The tax-free allowance varies by group, with specific amounts designated for each.Are there exemptions from inheritance tax in Poland?
Yes, exemptions are based on the inheritance tax allowance amount and the tax group of the inheritor.How do I report an inheritance to the Polish tax office?
Inheritances should be reported using the SD-3 form, or the SD-Z2 form for close family members.What is the deadline for reporting inheritance to the tax office?
The SD-3 form must be submitted within one month from when the tax obligation arises, while the SD-Z2 form has a 6-month deadline.Is there a tax exemption for close family members?
Yes, close family members can claim total exemption from inheritance tax, subject to certain conditions.What happens if I don’t report my inheritance on time?
Failure to report within the specified timeframe could lead to taxation on general principles.Are there any special rules for foster families in inheritance tax in Poland?
Yes, foster families and individuals working with children in certain care facilities are classified as ascendants or descendants for tax purposes.What determines the choice of tax office for reporting inheritance?
The choice of tax office depends on the contents of the inheritance, particularly the location of real estate if included.What if I inherit property of a value below the tax-free amount?
Inheritances below the tax-free amount are not subject to tax and do not require reporting.Can I avoid inheritance tax if I inherit from a non-relative?
Inheritances from non-relatives fall under tax group III and are subject to different tax allowances and rates.
How to calculate the inheritance tax in Poland?
If the value of the inheritance or gift exceeded the tax-free amount, the first step is to determine its value. The value of inherited or donated goods as well as belonging to a particular tax group will affect the amount of inheritance tax in Poland.
The tax is calculated based on the surplus of the tax base over the tax allowance. The method of its calculation is presented in the table below:
Excess in PLN
The tax amounts to
Over
Up to
From acquirers belonging to the tax group I
10 278
3%
10 278
20 556
308.30 PLN and 5% of the excess over 10 278 PLN
20 556
822.20 PLN and 7% of the excess over 20 556 PLN
From acquirers belonging to the tax group II
10 278
7%
10 278
20 556
719.50 PLN and 9% of the excess over 10 278 PLN
20 556
1 644.50 PLN and 12% of the excess over 20 556 PLN
From acquirers belonging to the tax group III
10 278
12%
10 278
20 556
1 233.40 PLN and 16% of the excess over 10 278 PLN
20 556
2 877.90 PLN and 20% of the excess over 20 556 PLN
Inheritance tax in Poland – tax rates
Inheritance tax in Poland – who has to pay it?
As a rule, the tax on inheritance or gifts charges either a testator or a beneficiary. Seemingly, there is no room for doubt here.
In practice, however, many people wonder at what point they become inheritors. Does it happen at the time of the testator’s death, or only at the time of issuing (or perhaps becoming final) the decision confirming the acquisition of inheritance?
Inheritance tax in Poland rules
People who acquired something through inheritance have to pay inheritance tax. Nevertheless, the obligation to pay the tax does not arise at the moment of the testator’s death. Depending on circumstances, it becomes binding:
at the moment of validation of the decision concerning the acquisition of inheritance, if the inheritance proceedings were pending before the court, or
at the moment of registering the certificate of inheritance if the inheritors decided (and had such a possibility) to resolve the inheritance issues in the presence of a notary public.
Nonetheless, you have to keep in mind that if the acquisition of inheritance has not been reported for taxation, the tax obligation arises as soon as the taxpayer declares the fact of its acquisition before a tax authority or tax inspection authority.
Inheritance tax in Poland – who can avoid it?
Two factors determine whether a person has a chance to avoid paying the inheritance tax in Poland. The first one is the amount of the so-called inheritance tax allowance.
The second one – concerns which inheritance tax group the inheritor or the beneficiary belongs to. Both of the factors are interrelated because the amount of the tax allowance varies depending on the specific tax group to which one belongs.
Do you need inheritance legal support in Poland?
Did you inherit assets in Poland and don’t know what to do next? Contact us today and get a free quotation for our services.
Belonging to particular groups depends on the degree of kinship between the person acquiring the inheritance and the testator. There are three tax groups:
descendants of siblings (e.g. niece, nephew), siblings of parents (e.g. uncle, aunt), descendants and spouses of stepchildren, spouses of siblings (e.g. sister’s husband), siblings of spouses (e.g. wife’s brother – brother-in-law), spouses
III
all persons not included in the previous two groups, including those unrelated to the recipient.
Inheritance tax in Poland – tax groups
From the 27th of October 2020, the Inheritance and Gift tax Act also identifies as descendants people who stay or have stayed in a foster family, in a family orphanage, in an educational care facility or in a regional care and therapy centre referred to in the Act of 9 June 2011 on Family Support and Foster Custody System.
Accordingly, people being a foster family, operating a family-type orphanage or working with children in an educational care facility or in a regional care and therapy centre are ascendants.
What is the amount of the tax allowance for each group?
Inheritance tax in Poland is not imposed on an inheritance or a gift with a value which does not exceed:
The value
Tax group
9.637 PLN
if the acquirer is classified in the tax group I
7.276 PLN
if the acquirer is classified in the tax group II
4.902 PLN
if the acquirer is classified in the tax group III
Inheritance tax in Poland – free of tax amounts
There is no obligation to pay the tax if the value of the inheritance or gifts does not exceed the tax-free amount. Only the acquisition of inheritance or gift exceeding the tax-free amount is subject to taxation.
Inheritance tax in Poland. Reporting inheritance to the tax office
Anyone who receives goods or intangibles for free should file an SD-3 form and pay tax on inheritance and gifts.
However, after acquiring an inheritance from a close member of a family, you should submit the declaration on an SD-Z2 form. This form, together with instructions on how to fill it, can be downloaded from the official website of the Ministry of Finance.
What happens if the taxpayer reports the fact of acquiring an inheritance or gift but not on the official form? According to the Minister of Finance, it is unacceptable for the tax authorities to deny the right to exemption when the taxpayer reports goods or property rights to the competent head of the Tax Office in a different way than the SD-Z2 form. Consequently, it is sufficient to report the inheritance in writing or in the record of acceptance.
Inheritance tax in Poland. Who does not have to report the inheritance to the tax office?
As a rule, anyone is exempt from the obligation to report an inheritance as long as he/she:
acquired within 5 years from one person – as inheritance or otherwise –property of the total value not exceeding tax allowance,
received an inheritance or a gift from the closest family and is subject to full tax exemption (in such case you should submit the SD-Z2 form).
In the event of receiving an inheritance from the immediate family, persons who have received property whose value does not exceed 9,637 PLN are exempt from the obligation to report the inheritance or gift to the tax office. At the same time, what is counted here is the value of the property received within 5 years from one person including all gifts and inheritance together.
Which tax office is competent for reporting the inheritance tax in Poland?
The choice of the relevant tax office for submitting the form by the inheritor depends on what was included in the inheritance.
If the inheritance included real estate, the competent tax office is determined by its location. This rule also applies if the real estate is only one of the components of the inherited property.
In other cases, you should submit the form should to the competent tax office based on the last place of permanent residence of the testator. If there was no such place – based on his or her last place of stay.
Deadline for reporting the inheritance to the tax office
You should submit the SD-3 form within one month from the moment when the tax obligation arose. In case of inheritance, the moment of tax obligation is counted from the date on which the decision on its acquisition becomes final or from the moment a notary registers the inheritance certificate.
On the other hand, when it comes to the SD-Z2 form submitted by members of the closest family, the deadline for submission amounts to 6 months from the moment the tax obligation arose.
Inheritance tax in Poland – tax exemption for the members of the closest family
When acquiring goods or property rights through inheritance by a spouse, descendants (children, grandchildren, great-grandchildren), ascendants (parents, grandparents), stepchildren, siblings, stepfather and stepmother, the inheritor may claim the total exemption from tax on inheritance and gifts. However, the exemption does not apply to inheritance when the testator’s death occurred before the 1st of January 2007.
The condition that must be met in order to use the exemption is to report the assets acquired as a result of inheritance to the tax office. As was mentioned before, the inheritors have 6 months for that from the moment of the court’s decision confirming the acquisition of the inheritance, or from the date of registration of the inheritance certificate by a notary public.
Need inheritance legal support in Poland?
Did you inherit assets in Poland and don’t know what to do next? Contact us today and get a free quotation for our services.
Inheritance tax in Poland. When you do not need to report the inheritance?
The reporting obligation does not apply to cases when the market value of the acquired inheritance does not exceed the tax-free amount. The principle of accumulation of the value of property acquired recently from the same person and in the period of 5 years preceding the acquisition of the inheritance should be taken into account here. Currently the value amounts to 9 637 PLN.
An exception may appear when the inheritor becomes aware of the inheritance after six months from the date on which the tax obligation arose.
Then the exemption applies when the inheritor reports these goods or property rights to the head of the tax office within 6 months from the date of receiving information about coming into the inheritance. The only condition is to provide evidence that the inheritor learned about the inheritance later.
If the acquisition of property through inheritance is not reported within the indicated time frames, then it is subject to taxation on general principles.
If this article was interesting for you and you want to know more on the topic it concerned we encourage you to contact us. Specialists from our law firm in Poland, will be happy to help. If you are interested in company registration in Poland visit our dedicated landing page.
FAQ on inheritance tax in Poland
What is inheritance tax in Poland?
Inheritance tax in Poland applies to properties acquired through inheritance, including real estate, vehicles, and financial assets.
Who is liable to pay inheritance tax in Poland?
The tax is generally charged to either the testator or the beneficiary, depending on specific circumstances.
How is inheritance tax calculated in Poland?
It’s calculated based on the value of the inheritance and the tax group the inheritor belongs to, with rates varying based on the excess over the tax-free amount.
What are the different tax groups for inheritance tax in Poland?
There are three tax groups, differentiated by the degree of kinship between the inheritor and the testator.
What is the tax allowance for each group?
The tax-free allowance varies by group, with specific amounts designated for each.
Are there exemptions from inheritance tax in Poland?
Yes, exemptions are based on the inheritance tax allowance amount and the tax group of the inheritor.
How do I report an inheritance to the Polish tax office?
Inheritances should be reported using the SD-3 form, or the SD-Z2 form for close family members.
What is the deadline for reporting inheritance to the tax office?
The SD-3 form must be submitted within one month from when the tax obligation arises, while the SD-Z2 form has a 6-month deadline.
Is there a tax exemption for close family members?
Yes, close family members can claim total exemption from inheritance tax, subject to certain conditions.
What happens if I don’t report my inheritance on time?
Failure to report within the specified timeframe could lead to taxation on general principles.
Are there any special rules for foster families in inheritance tax in Poland?
Yes, foster families and individuals working with children in certain care facilities are classified as ascendants or descendants for tax purposes.
What determines the choice of tax office for reporting inheritance?
The choice of tax office depends on the contents of the inheritance, particularly the location of real estate if included.
What if I inherit property of a value below the tax-free amount?
Inheritances below the tax-free amount are not subject to tax and do not require reporting.
Can I avoid inheritance tax if I inherit from a non-relative?
Inheritances from non-relatives fall under tax group III and are subject to different tax allowances and rates.
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