Inheritance tax in Poland

Inheritance (gift/ donation) tax in Poland

The Inheritance Act provides for the so-called taxation of a Polish inheritance located in Poland. Any person who has acquired an inheritance (heir) is obliged to declare it to the relevant tax office in Poland within the period prescribed by Polish law. However, this only applies to assets located in Poland (e.g. inherited real estate in Cracow or money in a bank account in Warsaw or Bydgoszcz or Radom).

However, not all heirs are required to pay taxes on an inheritance acquired in Poland. The law on exemption from inheritance tax stipulates that the persons closest to the testator are exempt from paying inheritance tax; there is a specific group of persons that includes, among others, the spouse, children, parents and even the adopted family. The list of persons exempted from the payment of inheritance tax is somewhat broader than the persons listed above, but it is a closed list. This means that only the closest persons specified in the provisions of the Inheritance and Gift Tax Act are exempt from paying inheritance tax.

Exemption from paying inheritance tax in Poland does not mean that the heir can remain inactive. In order to benefit from tax exemption in Poland, an application must be filed with the tax office on the appropriate form and containing strictly defined data. Our law firm often prepares such forms on behalf of its clients. The cost of the preparation is 615 € per heir. The cost includes administrative and tax expenses.