How inheritance tax works in Poland
Poland taxes acquisitions by inheritance, gift and several other gratuitous transfers under the inheritance and gift tax (SD) regime. The tax-free amount is aggregated for acquisitions from the same person over the five years before the latest acquisition and on the latest acquisition itself.
There are three tax groups. Group I includes spouses, children, parents, stepchildren, siblings, stepparents, parents-in-law, sons-in-law and daughters-in-law; group II covers more distant relatives; group III covers other people. The tax-free amounts are PLN 36,120, PLN 27,090 and PLN 5,733 respectively.
The closest family, including a spouse, descendants, ascendants, stepchild, siblings, and stepparents, can use a full statutory exemption regardless of value if the acquisition is reported on SD-Z2 within six months and, for money, the transfer is documented through a bank or similar regulated channel.
Inheritance tax brackets in Poland
| Bracket | Rate | Notes |
|---|---|---|
| Group I: excess up to PLN 11,833 | 3% | Taxable excess after the group allowance |
| Group I: excess PLN 11,834 to PLN 23,665 | PLN 355 + 5% | |
| Group I: excess above PLN 23,665 | PLN 946.60 + 7% | |
| Group II: excess above PLN 23,665 | PLN 1,893.30 + 12% | |
| Group III: excess above PLN 23,665 | PLN 3,313.20 + 20% |
Tax rates at a glance
- Group I
- 3% / 5% / 7%
- Group II
- 7% / 9% / 12%
- Group III
- 12% / 16% / 20%
- Closest-family exemption
- 0%Conditions apply
- Acquisition by prescription
- 7%
- Late-disclosed gift
- 20%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesProperty ownersExpatsHeirsEstate planners
Watch out for
- The close-family exemption is procedural, not automatic. Missing the six-month SD-Z2 notification or failing to document a cash transfer can turn a tax-free inheritance or gift into a taxable acquisition.
- The PLN thresholds are not a single lifetime allowance. Acquisitions from the same person are aggregated over the statutory five-year period, and the relationship is tested against the legal tax groups.
- Inherited shares and property can later create a separate 19% capital-gains issue when sold. The acquisition tax and the later disposal tax are different questions.
- Cross-border estates can also involve the deceased's residence, asset situs, treaty provisions, foreign inheritance tax and Polish reporting. A Polish heir should not assume that the Polish exemption settles the whole estate.
Frequently asked questions
Does Poland have inheritance tax?
Yes. Poland taxes many inheritances and gifts under a three-group scale from 3% to 20%, but close family can qualify for a full exemption if the statutory notification and evidence rules are followed.
Are children and spouses exempt in Poland?
They can use the full close-family exemption, generally by filing SD-Z2 on time and documenting monetary transfers correctly. The exemption is not safe to assume without completing the formalities.
How much can be inherited tax-free in Poland?
The standard five-year tax-free amount is PLN 36,120 for group I, PLN 27,090 for group II and PLN 5,733 for group III. Close family may instead qualify for a full exemption with the required filing.