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Inheritance Tax in Poland

Inheritance Tax in Poland

Updated on Tuesday 22nd September 2020

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Inheritance Tax in Poland.jpgThe inheritance tax in Poland varies according to the property that is inherited or gifted and it can be subject to exemptions under certain conditions. The tax and calculated according to the value of the assets/property in the country transferred upon the death of the individual. 
 
This tax does not necessarily extent to non-residents who inherit property based on Polish territory (or receive gifts), however, this exemption can apply when the donor is not a Polish resident or citizen.
 
Our team of lawyers outlines the main issues to take into consideration about the inheritance tax in Poland in this article. For more information, as well as personalized aid for solving various inheritance issues, we invite you to reach out to the inheritance experts at our law firm in Poland
 

What is the value of the Polish inheritance tax?

 
Individuals who inherit property or assets in Poland are subject to the Polish inheritance tax. This also applies when the goods or the property are located outside of the country and the individual who inherits is a Polish national or has a place of residence in the country.
 
The value of the inheritance tax in Poland is calculated according to the value of the property (this is the tax base, determined on the date of the acquisition) and according to the tax group in which the one who inherits is based. There are three groups, described below by our lawyers in Poland
 
The rates for the inheritance tax in Poland are the following:
 
  • 3%: for the tax group I when the value is up to 10,278 PLN; this is a flat rate;
  • 308.30 PLN: also for the first inheritance group, when the value of the inherited property or assets of between 10,278 PLN and 20,556 PLN: to this amount, a 5% rate applies when the amount is over 10,278 PLN;
  • 822.20: the rate for amounts over 20,556 PLN to which a 7% surplus is applicable;
  • 7%: the flat tax rate for individuals in group II when the value of the inheritance is no more than 10,278 PLN;
  • 719.50 PLN: for group II when the value of the inheritance is between 10,278 PLN and 20,556 PL; a 9% surplus is also applicable;
  • 1,644.5 PLN: for group II when the amount is above 20,556 to which a 12% surplus is applicable;
  • 1,233.40: for group III when the value of the inheritance is between 10,278 PLN and 20,556 PLN; below this value there is a flat 12% rate and above these values (over 20,556) the tax is 2,877.9 plus 20%. 
 
Please keep in mind that these taxes can be subject to change. We advise interested individuals to reach out to the team at our law firm in Poland for updated information. 
 
Some types of assets are exempt from the inheritance tax in Poland. They can include inherited furniture, clothing, ancient art collections or monuments. Property inherited from certain categories of individuals can be exempt when the acquirer reports the inheritance of tangible property to the competent tax office in Poland within six months from the date on which the tax liability entered into force. Our team of lawyers in Poland can give you more details. 
 

What are the taxpayer categories for the purpose of inheritance tax in Poland?

 
The three main groups according to which the tax is calculated are the following:
 
  1. Group I: spouses, descendants and ascendants, stepchildren, sons and daughters-in-law, stepparents as well as parents-in-law;
  2. Group II: the descendants of siblings, the siblings of parents, the descendants and spouses of stepchildren, the siblings of spouses and others;
  3. Group III: same-sex partners or another individual where there are no family links between the donor and the acquirer. 
 
Our lawyers can help you with a personalized assessment to determine the group in which you fit for the purpose of the inheritance tax in Poland
 
Foreign nationals are subject to this tax when the property rights are located in the country. However, foreigners are tax exempt when the donor was not a Polish citizen or a Polish tax resident. 
 

What are other taxes on individuals in Poland?

 
The inheritance tax in Poland is one of the main taxes, however, others apply to individuals. We list some of these below:
 
  • the individual income tax rate, between 17% and 32%, with an option for a flat rate of 19% in some cases;
  • dividend income is subject to a 19% flat rate;
  • capital gains and investment income are also subject to a separate tax regime of 19%. 
  • gifts are also subject to taxation much in the same manner as the inheritance tax, with taxation values of 3%, 7% and 12%;
  • rental income is subject to either a progressive scale or a flat rate tax.
 
For more information about the inheritance tax as well as the taxation of individuals and companies, please contact our lawyers in Poland