Inheritance Tax in Poland: Complete Guide

Poland levies inheritance and gift tax (podatek od spadkow i darowizn) based on the relationship between the deceased/donor and the recipient. Close family members benefit from generous exemptions that effectively make most family inheritances tax-free. Understanding these rules helps you plan transfers and avoid unnecessary tax.

Tax groups

Polish inheritance tax divides recipients into three groups based on their relationship to the deceased or donor:

The "zerowa grupa" (zero group) exemption

The most important rule: close family members (Group 0) can inherit or receive gifts completely tax-free, regardless of amount, provided they report the inheritance/gift to the tax office within 6 months.

Group 0 includes: Spouse, children, parents, grandchildren, grandparents, siblings, stepparents, stepchildren.

What this means: If you inherit a 2 million PLN apartment from your parent, you owe zero inheritance tax — as long as you file the SD-Z2 form with your tax office within 6 months of the inheritance.

Filing requirement

SD-Z2 form: Must be filed within 6 months of the date of inheritance (date of death, or date of court inheritance decision) or gift (date of notarial deed or bank transfer).

Failure to file: If you do not file within 6 months, you lose the Group 0 exemption and pay tax at Group I rates (3-7% on the amount above the Group I threshold).

Tax rates for non-exempt inheritances

Group I rates

Group III rates (unrelated persons)

Example: You inherit 100,000 PLN from a friend (Group III). Taxable amount: 100,000 - 18,060 = 81,940 PLN. Tax: 3,313 + (81,940 - 23,665) x 20% = 3,313 + 11,655 = 14,968 PLN.

Special rules

Inherited property (apartment/house)

For Group 0 members, inherited property is tax-free (report within 6 months). For others, the market value of the property at the date of death is used to calculate tax. The tax office may challenge your declared value if it seems below market.

If you inherit a property and sell it within 5 years, you owe 19% capital gains tax on any gain above the inherited value. After 5 years, the sale is tax-free.

IKE and IKZE accounts

• IKE: Inherited by a designated beneficiary. The beneficiary can transfer the funds to their own IKE (continuing tax-free treatment) or withdraw (19% tax on gains).
• IKZE: Inherited amount is taxed at 10% flat rate (the same as a qualifying retirement withdrawal).

Life insurance

Life insurance proceeds paid to a designated beneficiary are not subject to inheritance tax. This is one of the most effective inheritance tax planning tools for Group II and III beneficiaries.

Bank accounts

Banks freeze accounts upon notification of the account holder's death. To access the funds, heirs must present a court inheritance decision (postanowienie o stwierdzeniu nabycia spadku) or a notarial inheritance certificate (akt poswiadczenia dziedziczenia). This process takes 2-8 weeks.

Gift tax planning

Lifetime gifts are taxed under the same rules as inheritances. Group 0 members can receive unlimited gifts tax-free (with SD-Z2 filing within 6 months).

Strategy for non-Group-0 recipients: If you want to give a substantial gift to a friend or partner, structure it over multiple years. The tax-free threshold (18,060 PLN for Group III) resets every 5 years per donor. A gift of 18,060 PLN every 5 years from the same person is tax-free.

Unmarried partners

Unmarried partners are in Group III (highest tax rates). A partner inheriting a 500,000 PLN apartment pays approximately 98,000 PLN in inheritance tax. By contrast, a married spouse pays zero. This is one of the strongest financial arguments for marriage in Poland, or at minimum, a will combined with life insurance.

How to minimise inheritance tax

1. File SD-Z2 on time. The most common mistake is missing the 6-month deadline and losing the Group 0 exemption.
2. Use life insurance for non-family beneficiaries. Proceeds are tax-free regardless of the beneficiary's relationship to the deceased.
3. Lifetime gifts within Group 0. Transfer assets during your lifetime to close family members. Each gift is tax-free with proper reporting.
4. Will planning. A clear will (testament) prevents disputes and ensures assets go where intended with minimal tax.
5. Consider marriage. For long-term partners, marriage provides Group 0 status, saving potentially tens of thousands of PLN in inheritance tax.

Practical steps after inheriting

1. Obtain the death certificate (akt zgonu)
2. Visit a notary for an inheritance certificate, or file with the court for an inheritance decision
3. File SD-Z2 within 6 months of the inheritance for Group 0 exemption
4. Notify all relevant institutions (banks, brokers, insurance companies, property registry)
5. If inheriting property, update the property register (ksiega wieczysta)

Track inherited assets alongside your existing portfolio in Freenance. Understanding how an inheritance changes your net worth, asset allocation, and financial freedom runway helps you make informed decisions about what to keep, sell, or reinvest.

Related Articles

• Prenup Financial Checklist — Marriage and financial planning
• IKE Guide — How IKE accounts are inherited
• Life Insurance in Poland — Tax-efficient inheritance planning tool