Inheritance Tax in Poland – Tax Groups, Exemptions and the SD-Z2 Form

Overview of Inheritance Tax in Poland

Poland levies a tax on inheritance and gifts (podatek od spadków i darowizn), governed by the Act of 28 July 1983. The tax obligation arises upon acquiring assets through inheritance, bequest, testamentary instruction, specific bequest (zapis windykacyjny), or zachowek (reserved portion).

The good news: Polish inheritance tax is relatively mild compared to many Western European countries, and close family members can obtain full exemption regardless of the estate's value.

The Three Tax Groups

The tax rate depends on the relationship between the deceased and the heir. The law defines three tax groups:

Group I – Close Family

Members:

• Spouse
• Descendants (children, grandchildren, great-grandchildren)
• Ascendants (parents, grandparents)
• Siblings
• Stepchildren
• Sons-in-law, daughters-in-law
• Stepparents
• Parents-in-law

Tax-free allowance: 36,120 PLN (as of 2025/2026)

Tax rates (on the excess above the allowance):

Group II – Extended Family

Members:

• Descendants of siblings (nephews, nieces)
• Siblings of parents (uncles, aunts)
• Descendants and spouses of stepchildren
• Spouses of siblings
• Siblings of spouses
• Spouses of siblings of spouses
• Spouses of other descendants

Tax-free allowance: 27,090 PLN

Tax rates:

Group III – Unrelated Persons

Everyone else, including:

• Friends
• Unmarried partners (cohabitants)
• Complete strangers

Tax-free allowance: 18,060 PLN

Tax rates:

The Zero Tax Group – Full Exemption

The most important provision for families is the zero tax group (article 4a of the Act). It includes:

• Spouse
• Descendants (children, grandchildren)
• Ascendants (parents, grandparents)
• Siblings
• Stepchildren
• Stepparents

Persons in the zero group can be completely exempt from tax, regardless of the estate's value, provided they:

1. Report the acquisition to the tax office using the SD-Z2 form.
2. Meet the deadline – 6 months from the date the court decision on inheritance becomes final, or from the date the notarial deed of inheritance (akt poświadczenia dziedziczenia) is registered.

Warning: Missing the 6-month deadline means losing the exemption and paying tax according to Group I rates.

The SD-Z2 Form – How to File

The SD-Z2 form (Zgłoszenie o nabyciu własności rzeczy lub praw majątkowych) is the key document for claiming the zero group exemption.

Who Files SD-Z2?

Persons in the zero tax group who want to claim the inheritance tax exemption.

Where to File?

At the tax office (urząd skarbowy) competent for:

• The location of the inherited real estate (if applicable).
• The deceased's last place of residence (in other cases).

The form can be submitted in person, by mail, or electronically via the e-Deklaracje platform.

Deadline

6 months from:

• The date the court decision on inheritance becomes legally binding, or
• The date the notarial deed of inheritance is registered.

What to Include

1. Taxpayer's data – name, PESEL number, address.
2. Deceased's data – name, date of death.
3. Title of acquisition – inheritance, bequest, zachowek, etc.
4. Supporting document – court decision or notarial deed.
5. List of acquired assets – with their market value as of the date of acquisition.

Common Mistakes

• Missing the 6-month deadline – the most critical error, resulting in loss of exemption.
• Incorrect asset valuation – the tax office can challenge undervalued assets and order a professional appraisal.
• Incomplete information – missing signature, incomplete description of acquired items.

Other Exemptions

Housing Exemption

Inheritance of a residential building or apartment (up to 110 m²) may be exempt, provided the heir:

• Does not own another residential property.
• Is not a tenant of another property.
• Will reside in the inherited property for at least 5 years from acquisition.

Exemption for Persons with Disabilities

Persons classified as having a first-degree disability or being permanently unable to work may qualify for additional reliefs.

Calculating Inheritance Tax – Example

Scenario: Piotr (35 years old) inherits an estate worth 150,000 PLN from his uncle (Group II).

Calculation:

1. Tax-free allowance for Group II: