In Poland, if you inherit assets, you may be required to pay inheritance tax. The tax amount depends on the net value of the inherited property located in Poland (foreign assets are excluded) and your degree of kinship with the deceased. Here’s how it all works…
When you do not have to pay…
Since January 1, 2007, the following family members are fully exempt from inheritance tax:
- Spouse
- Descendants (children, grandchildren, etc.)
- Ascendants (parents, grandparents)
- Stepchildren
- Siblings
- Stepmother and stepfather
However, exemption is not automatic. To benefit from it, you must file Form SD-Z2 with the tax office within 6 months after the probate is finalized. This declaration must list the inherited property and its estimated value.
If you have to pay…
You must pay inheritance tax if:
- You’re not among the exempt relatives listed above, or
- You are, but the deceased passed away before January 1, 2007.
To comply with the law, you must:
- File Form SD-3 with the tax office within 30 days of the probate conclusion.
- Provide full information about the inheritance; the tax office will calculate the due amount.
If the inheritance includes real estate, submit the form to the tax office where the property is located. Otherwise, submit it where the deceased last resided.
Determining the Tax
1) Estimate the value
You are responsible for estimating the market value of each inherited item. If the tax office considers your valuation too low, it may conduct its own assessment.
2) Identify your Tax Group
There are three tax groups, based on your relationship to the deceased:
Group 1: Spouse, descendants, ascendants, stepchildren, sons/daughters-in-law, siblings, stepmother, stepfather, parents-in-law
Tax-free allowance: 36,120 PLN
Tax brackets (after deducting allowance):
- Up to 10,278 PLN → 3%
- 10,278.01 – 20,556 PLN → 308.30 PLN + 5% of the excess over 10,278 PLN
- Over 20,556 PLN → 822.20 PLN + 7% of the excess over 20,556 PLN
Group 2: Descendants of siblings, siblings of parents, spouses of stepchildren, spouses of siblings, siblings of spouses, spouses of siblings-in-law, spouses of descendants
Tax-free allowance: 27,090 PLN
Tax brackets (after deducting allowance):
- Up to 10,278 PLN → 7%
- 10,278.01 – 20,556 PLN → 719.50 PLN + 9% of the excess over 10,278 PLN
- Over 20,556 PLN → 1,644.50 PLN + 12% of the excess over 20,556 PLN
Group 3: All others (e.g., friends, unrelated persons)
Tax-free allowance: 5,733 PLN
Tax brackets (after deducting allowance):
- Up to 10,278 PLN → 12%
- 10,278.01 – 20,556 PLN → 1,233.40 PLN + 16% of the excess over 10,278 PLN
Over 20,556 PLN → 2,877.90 PLN + 20% of the excess over 20,556 PLN
The rules listed above are general and cover the most important aspects of inheritance tax in Poland. However, each case is unique and may involve different legal provisions. That’s why it’s essential to analyze the situation thoroughly before taking any steps. If you have any questions or need assistance from a lawyer, please do not hesitate to contact me via email (kotowska.kancelaria@gmail.com) or by phone.
Want to know more about inheritance law in Poland? Here: Inheritance in Poland: Key Legal Rules Explained for Families and Heirs
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