A family foundation (fundacja rodzinna) is a legal personality available since 2023. A business owner transfers company shares, real estate, and other assets into it, and the foundation manages those assets and pays out benefits to the family under rules set by the founder, so the assets never need to be split among heirs and the risk of inheritance disputes drops. In 2026 it remains one of the few structures in Poland offering deferred corporate tax on investment income, as long as the foundation’s activity stays within the statutory list of permitted transactions.
- Registration of a family foundation is handled exclusively by the Regional Court in Piotrków Trybunalski; it is one central register for the whole of Poland, regardless of where the foundation is seated, and the foundation acquires legal personality the moment it is entered in that register (Art. 4(1)-(2) of the Family Foundation Act).
- The minimum founding fund is PLN 100,000, and the foundation must be established by a notarial deed or a will (Art. 17 of the Family Foundation Act).
- Income from permitted activity (dividends, interest, rent, sale of shares) is exempt from CIT while it stays inside the foundation; income tax is deferred, not eliminated (Art. 6(1)(25) of the CIT Act).
- The foundation pays 15% CIT the moment it pays out a benefit to a beneficiary or is dissolved (Art. 24q of the CIT Act).
- Beneficiaries from the closest family (spouse, children, grandchildren, parents, siblings, stepchildren) pay 0% PIT on what they receive, more distant beneficiaries pay 10% or 15% PIT (Art. 21(1)(157) and Art. 30(1)(17) of the PIT Act).
- Business activity outside the statutory list is taxed at a punitive 25% CIT (Art. 24r of the CIT Act).
- What a family foundation is and who it suits
- Setting up a family foundation, step by step
- Minimum capital and setup costs
- Corporate income tax (CIT) on the foundation
- Personal income tax (PIT) on beneficiaries
- What a family foundation cannot do
- Common mistakes and hidden profits risk
- FAQ
What a family foundation is and who it suits
A family foundation is a separate legal entity with its own legal personality, distinct from both the founder and the beneficiaries, created to hold, manage, and eventually distribute family assets according to rules the founder sets out in the statute (Art. 2 of the Family Foundation Act). It was introduced specifically to solve a problem that many Polish entrepreneurs faced: a company built over decades could be broken up between heirs after the owner’s death, with no mechanism to keep shares together or protect minor or financially inexperienced heirs.
It typically makes sense for a business owner who wants to:
- Keep company shares in one hand instead of splitting them between several heirs.
- Set rules for how and when family members receive money, for example fixed monthly payments, education costs, or a one-off payment at a certain age.
- Protect assets from a beneficiary’s creditors, divorce settlement, or poor financial decisions.
- Reinvest dividends and other passive income without paying current income tax on it.
Activity outside the permitted list means 25% corporate tax on revenue, not profit, with zero cost deductions.
Setting up a family foundation, step by step
- Draft the statute. The founder decides the foundation’s name, seat, purpose, the founding fund’s value, who the beneficiaries are (or how they will be identified), what each beneficiary is entitled to, and what happens to the assets if the foundation is dissolved.
- Sign the founding act at a notary. The statute must be made as a notarial deed. A foundation can also be created through a will, but in that case it can only have one founder and only comes into existence after the founder’s death.
- Contribute the founding fund. At least PLN 100,000 in cash or other assets (company shares, real estate, securities) must be transferred to the foundation before the registration application is filed.
- Appoint the management board (and, if the statute requires it, a beneficiaries’ assembly and a supervisory board for larger foundations).
- File for registration. This is one central register for all of Poland, kept exclusively by the Regional Court in Piotrków Trybunalski regardless of where the foundation is seated (Art. 4(2) of the Family Foundation Act). From the moment the founding act is signed until registration, the entity operates as a “family foundation in organization” and can already hold assets and enter into obligations. Since July 2026, basic data on registered foundations (register number, name, seat, tax ID, statistical number) can be checked directly through the Family Foundation Register Portal.
Minimum capital and setup costs
The founding fund cannot be lower than PLN 100,000, but there is no upper limit, and most foundations are funded with far more: whole company shareholdings, real estate portfolios, or investment accounts. Setup itself is not expensive relative to the assets involved; the real cost driver is legal and tax advisory work on the statute.
| Cost item | Typical amount |
| Notarial fee (founding act and statute) | PLN 1,500 to 10,000, depends on the value of the founding fund |
| Court registration fee | PLN 500 |
| Legal work on the statute | PLN 3,000 to 15,000, depends on structure complexity |
| Tax advisory before setup | PLN 2,000 to 8,000 |
| Ongoing bookkeeping | PLN 700 to 2,500 per month for a simple asset base, more for a large real estate portfolio or active investment activity, full accounting books are mandatory under the Accounting Act |
Corporate income tax (CIT) on the foundation
The foundation is a CIT taxpayer, but it benefits from a subject-based exemption (Art. 6(1)(25) of the CIT Act) on income from its permitted activity, dividends from companies it holds shares in, interest, rental income, and gains from selling shares, securities, or even cryptocurrency. As long as that income stays inside the foundation and is reinvested, no CIT is due; the tax is deferred, not cancelled. Exceptions to this exemption (including the tax on benefits and the tax on income from buildings) are set out in Art. 6(6)-(7) of the CIT Act.
| Situation | CIT rate | When it applies |
| Current income from permitted activity (dividends, rent, interest, sale of shares) | 0% | While the income stays inside the foundation |
| Payment of a benefit to a beneficiary | 15% | Due on the value of the benefit, whether cash or in kind |
| Assets distributed on dissolution | 15% | On the value of the assets handed out |
| Hidden profits (disguised benefits to related parties) | 15% | Non-market loans, gifts, or services to the founder, beneficiaries, or related entities |
| Business activity outside the statutory list | 25% | Charged on revenue, not profit, no costs can be deducted |
Legal basis: Art. 6(1)(25) of the CIT Act (subject-based exemption), Art. 24q (15% on benefits and assets on dissolution), and Art. 24r (25% for activity outside the permitted scope).
Personal income tax (PIT) on beneficiaries
Whether a beneficiary owes personal income tax on what they receive from the foundation depends on their family relationship to the founder, using the tax-group logic from the inheritance and gift tax act (Art. 30(1)(17) of the PIT Act). The preferential rate only covers the share of the benefit that matches the proportion of assets contributed by that particular founder to the foundation’s total assets; the excess is taxed at 15% (Art. 27(4) of the Family Foundation Act).
| Beneficiary group | Who is included | PIT on the benefit |
| Group 0 | Spouse, children, grandchildren, parents, grandparents, siblings, stepchildren, stepparents | 0%, fully exempt |
| Tax groups I and II | More distant relatives, for example siblings of a parent | 10% |
| Other beneficiaries | Unrelated persons named in the statute | 15% |
The foundation is the tax remitter: it calculates and pays the 15% CIT on the benefit itself (Art. 24q of the CIT Act), and a Group 0 beneficiary also gets a full PIT exemption under Art. 21(1)(157) of the PIT Act, in proportion to the assets contributed by the founder they are related to.
What a family foundation cannot do
The tax exemption only covers a closed list of permitted activity set out in Art. 5 of the Family Foundation Act, mainly holding and managing assets, receiving dividends and interest, renting out real estate, selling shares and securities, and providing loans to related companies or to beneficiaries on market terms. Running other types of business activity, trading, manufacturing, or services, outside that list triggers the 25% sanction rate, charged on revenue rather than profit, which makes it far more punishing than ordinary CIT (Art. 24r of the CIT Act).
A family foundation is a holding and succession tool, not a way to run daily business. The company keeps its own legal personality; shares are held by the foundation.
Common mistakes and hidden profits risk
- Treating the foundation as a personal wallet. Paying for the founder’s or a beneficiary’s private expenses directly from foundation funds, without going through the formal benefit procedure, is classified as a hidden profit and taxed at 15% CIT plus scrutiny risk.
- Below-market loans or rent to the founder. Any transaction between the foundation and the founder, a beneficiary, or a related entity must be on market terms, otherwise the difference is treated as a hidden profit.
- Writing too vague a statute. If beneficiaries or their entitlements aren’t clearly defined, disputes after the founder’s death can end up in court, defeating the whole purpose of the structure.
- Underestimating bookkeeping duties. A family foundation must keep full accounting books from day one, regardless of size; there is no simplified regime. The annual financial statement must be prepared and signed by March 31 (art. 52(1) of the Accounting Act), approved by the beneficiaries’ assembly by June 30 (art. 53(1)), and filed with the family foundation register in Piotrków Trybunalski within 15 days of approval (art. 69).
Thinking about setting up a family foundation to hold your company shares, or unsure whether it fits your succession plans? Our team helps entrepreneurs in Poland structure their business and plan for succession.
FAQ
Can a foreigner establish a family foundation in Poland?
Yes. The founder must be a natural person with full legal capacity, Polish citizenship or residence status isn’t a legal condition under the Act. In practice, a foreign founder should plan carefully around their own country’s succession and tax rules alongside the Polish ones.
Can a family foundation have more than one founder?
Yes, if it’s established by a notarial founding act, several founders can act together. A foundation created through a will can only have a single founder.
Does a family foundation pay VAT?
It can become a VAT payer if it carries out activity that is subject to VAT, for example renting out commercial real estate. The CIT exemption on permitted activity and VAT registration are two separate questions.
Can a beneficiary also sit on the management board?
Yes, there’s no legal ban on this, but the statute should clearly separate a person’s role as a beneficiary receiving benefits from their duties and liability as a board member.
Does a beneficiary living abroad pay tax twice on a payout from the foundation?
The foundation withholds and pays Polish PIT at source as the payer, regardless of where the beneficiary lives. Whether the beneficiary also owes tax in their own country depends on that country’s rules and its double tax treaty with Poland, so it’s worth checking before planning payouts.
Sources and legal basis
- Act of 26 January 2023 on the Family Foundation, Journal of Laws 2023 item 326, Art. 2, 4, 5, 17 and 27(4).
- Act of 15 February 1992 on Corporate Income Tax (CIT), Art. 6(1)(25) and (6)-(7), Art. 24q, Art. 24r, on the family foundation’s tax exemption, the 15% CIT on benefits, and the 25% sanction rate.
- Act of 26 July 1991 on Personal Income Tax (PIT), Art. 21(1)(157) (Group 0 exemption) and Art. 30(1)(17) (10% and 15% rates for other tax groups).
Legal status as of: August 25, 2026.
Author: Walery Kusznirski, in-house legal practitioner at MojaFirma.
This article is not tax or legal advice. Setting up a family foundation involves detailed statute drafting and tax planning specific to each family’s situation, so before proceeding we recommend consulting a tax advisor or booking a free consultation with our team.
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