| 19 September, 2023

Family Foundations

On 22 May 2023 the new provisions on a family foundation entered into force. They are intended to respond to the difficulties relating to the succession of enterprises in Poland. The family foundation, most of all, is to facilitate the continuity of business activity and the protection of the assets in the future, at the same time serving as a financial security e.g. for the closest family of the founder.

There are two entities within the family foundation, specifically:

  • a founder who is a natural person setting up the foundation in the foundation deed or testament; and
  • beneficiaries who may be natural persons, non-governmental organisations, as well as the founder himself. These are the entities that receive benefits from the foundation.

It should be pointed out that there is no obligation for family bonds to exist between the founder and the beneficiaries. However, they significantly influence the taxation method of the benefits paid out.

Is it possible for a foundation to carry out business activity?

The possibility of pursuing business by a family foundation has been limited in particular to the management over the assets. It may consist in, among other things, lease of a real estate, acquisition and disposal of securities and derivatives, as well of the rights of similar nature.

Taxation of family foundation

Below we present an outline of taxation of selected activities related to the family foundation:

Type of activity


Setting up a foundation

neutral in terms of CIT and PCC (tax on civil law transactions)

Transfer of benefits onto the beneficiaries

15% CIT

Receipt of benefits by beneficiaries

  • neutral for the founder (as a beneficiary) and persons categorized as the so-called ‘zero tax group’
  • 10% PIT for persons from 1st tax group apart from the ‘zero tax group’ that is entitled to exemption) and 2nd tax group
  • 15% PIT for the remaining beneficiaries

Income from permitted activity

CIT exempt

Income from activity not stipulated for a family foundation

25% CIT


Family foundation audit

The provisions provide for a family foundation audit to be carried out every four (4) years, and in some cases - even annually. In particular, the audit shall cover the correctness and reliability of the asset management of the family foundation, the incurrence and fulfilment of commitments. The audit firm or team of auditors shall be appointed by the meeting of beneficiaries of the foundation.  The team of auditors may be exclusively composed of an expert auditor, tax advisor, advocate and attorney-at-law. Moreover, an auditor must be independent of the foundation and must not participate in advisory processes for the foundation.

Should you have any questions regarding the family foundation or need our support in this regard, please feel free to contact TIAS Tax Department at: