Inheritance Tax in Poland — What Heirs Need to Know

Inheritance Tax in Poland — What Heirs Need to Know

Receiving an inheritance is often an emotional experience, but it also comes with concrete tax obligations. In Poland, inheritance and gift tax is regulated by the Act of July 28, 1983 (amended many times since). This guide explains who pays, how much, and when — plus how to legally avoid the tax entirely.

Who Pays Inheritance Tax?

Inheritance tax is paid by the heir — the person who receives assets from the deceased. The tax obligation arises upon acceptance of the inheritance (typically at the moment of the deceased's death).

The amount of tax depends on two factors:

1. Degree of kinship with the deceased (tax group)
2. Value of the inherited assets

Three Tax Groups

Polish law divides heirs into three groups:

Group I — closest relatives:

• Spouse, children, grandchildren, parents, grandparents, siblings, stepchild, stepfather, stepmother, son-in-law, daughter-in-law, in-laws

Group II — extended family:

• Nephews, nieces, in-laws of siblings, parents' siblings (uncles/aunts), spouses of siblings

Group III — everyone else:

• Unrelated persons, friends, unmarried partners

Tax-Free Allowances (2026)

Each group has a tax-free threshold — inheritance below this value is not taxed:

• Group I: 36,120 PLN
• Group II: 27,090 PLN
• Group III: 5,733 PLN

Note: These amounts apply to the total value of assets received from one person over 5 years. If you previously received a gift from the same person, it's added to the inheritance total.

Tax Rates

Tax is calculated on the amount exceeding the tax-free allowance:

Group I:

• Up to 11,833 PLN excess: 3%
• 11,833 to 23,665 PLN: 355 PLN + 5% of excess
• Above 23,665 PLN: 946 PLN + 7% of excess

Group II:

• Up to 11,833 PLN: 7%
• 11,833 to 23,665 PLN: 828 PLN + 9% of excess
• Above 23,665 PLN: 1,893 PLN + 12% of excess

Group III:

• Up to 11,833 PLN: 12%
• 11,833 to 23,665 PLN: 1,420 PLN + 16% of excess
• Above 23,665 PLN: 3,313 PLN + 20% of excess

Full Exemption for Closest Family — "Group 0"

This is the most important tax relief. If you belong to the so-called Group 0 (spouse, children, grandchildren, parents, grandparents, siblings, stepchild), you can be fully exempt from tax — regardless of the inheritance value.

Condition: You must report the inheritance to the tax office using form SD-Z2 within 6 months from the date the court ruling confirming inheritance becomes final (or the notarial deed of inheritance is registered).

Warning! If you miss this deadline, you lose the right to exemption and must pay tax under Group I rules.

How to Report an Inheritance — Step by Step

Step 1: Confirmation of Inheritance

You have two options:

• Court — application for confirmation of inheritance (cheaper, but slower)
• Notary — notarial deed of inheritance (faster, costs about 150–300 PLN + VAT)

Step 2: Report to the Tax Office

• SD-Z2 — if you qualify for exemption (Group 0). Deadline: 6 months.
• SD-3 — if you owe tax. Deadline: 1 month from the tax obligation arising.

Step 3: Pay the Tax

If you don't qualify for exemption, the tax office will issue a decision with the tax amount. You have 14 days to pay from receipt of the decision.

What's Included in an Inheritance?

An inheritance includes all assets of the deceased:

• Real estate (apartments, houses, land)
• Bank account balances
• Cars and other movable property
• Stocks, bonds, investment funds
• Copyrights
• Debts (yes, debts are inherited too!)

Important: You can reject an inheritance within 6 months of learning about it. If the inheritance is burdened with debt, you can also accept it with benefit of inventory — you're responsible for debts only up to the value of inherited assets.

Inheriting Real Estate — Additional Obligations

If you inherit property, remember about:

• Property tax — you must pay it from the moment of acquisition
• Selling inherited property — if you sell within 5 years from the end of the year of acquisition, you pay 19% PIT on the profit (unless you allocate proceeds to your own housing purposes)

Double Taxation Concerns

If the deceased lived abroad or assets are in another country, double taxation may be an issue. Poland has double taxation treaties with many countries — but check whether they cover inheritances (they don't always).

Estate Planning — What You Can Do Now

Instead of leaving things to chance:

• Write a will — avoid disputes between heirs
• Consider lifetime gifts — they also benefit from Group 0 exemption
• Document your assets — this makes the process easier for heirs. Tools like Freenance help you maintain a complete picture of your finances in one place — invaluable for estate planning.

Common Mistakes Heirs Make

1. Missing the 6-month deadline for SD-Z2 filing — losing the exemption
2. Not reporting the inheritance at all — the tax office can charge interest and penalties
3. Accepting inheritance with debts without checking — better to accept with benefit of inventory
4. Selling property too early — forgetting about the 5-year tax period

FAQ

Do I have to pay inheritance tax after my parents?

No, if you report the inheritance on form SD-Z2 within 6 months. As a Group 0 member (children), you're entitled to full exemption regardless of value.

What happens if I don't report the inheritance on time?

You lose the exemption and must pay tax under Group I rates. Additionally, the tax office may charge late payment interest.

Are the deceased's debts also inherited?

Yes. An inheritance includes both assets and liabilities (debts). However, you can reject the inheritance or accept it with benefit of inventory (liability for debts limited to the value of inherited assets).

How much does notarial confirmation of inheritance cost?

A notarial deed of inheritance costs about 150–300 PLN net + VAT. It's faster than the court route but requires the presence of all heirs.

Summary

Inheritance tax in Poland can be significant — especially for people outside the closest family. For Group 0 (spouse, children, parents, siblings), a full exemption exists but requires timely reporting. The key is knowing the deadlines, forms, and obligations. Planning ahead — including using tools like Freenance to organize your finances — makes the entire process much smoother for everyone involved.