How high are legacy taxes in Poland?

Polish property gifts and inheritances are subject to taxation. These taxes are payable by the beneficiaries. Tax is levied less debts and related expenses on the market value of the property. دليل

The tax rates are based on the value of the inherited property and the relationship between the deceased and the recipients. Three categories of beneficiaries exist: Class 1, Class 2 and Class 3. Part of the inheritance is tax-free and the tax-free amount depends on the classification of the beneficiary.

Category 1 recipients are married, child and stepchild, children and sons and daughters-in-law, parents, step-parents, parents-in-law, brothers and sisters). The tax-free amount for beneficiaries of Category 1 is PLN9,637 (€2,328).

CATEGORY 1 BENEFICIARY INHERITANCE TAX

BASIC TAX, PLN €) TAXIVE RATE

0% up to 9.637 (€2.142)

9,637 to 10,278 (€2,284) 3%

10,278 - 20,556 (Euros 4,568)

Five percent

More than 20,556 (€4,568) 7%

Source: Guide to Global Property

The heritage and donations to the recipients of category 1 of an item up to the value of 110 m2 of the property shall be exempt from tax under certain conditions. The same applies to the heritage of recipients of categories 2 and 3, subject to certain conditions.

Category 2 recipients are nieces and nephews, brothers' and sisters' spouses). For category 2 beneficiaries, the tax-free amount is PLN7.276 (€1.617).

CATEGORY 2 BENEFICIARY TAX INHERITANCE

BASIC TAX, PLN €) FAST TAXE

0% up to 7,276 (€1,617)

7,276 -10,278 euros (2,284 euros)

Seven percent

10,278 - 20,556 (Euros 4,568)

Nine percent

More than 20,556 (€4,568) 12%

Source: Guide to Global Property

All other beneficiaries not classified in Category 1 and 2 are Category 3 recipients. The tax-free amount for beneficiaries of category 3 is PLN4.902 (€1.089).

INHERITANCE TAX - BENEFICIARY 3 CATEGORY

BASIC TAX, PLN €) FAST TAXE

Up to 4,902 (€1,089) 0%

4,902 – 10,278 (€2,284) 12% 12%

10,278 - 20,556 (Euros 4,568)

16% 17%

More than 20.556 (€4.568)

Source: Guide to Global Property

LAW INHERITANCE

Thanks to Dr. Torsten Bogen and Michal Slazak of Gleiss Lutz

What are the laws on heritage in Poland?

The deceased's national law applies to heritage issues in Poland.

The Civil Code, the Civil Procedure Code and the Private International Law are the main laws governing heritage in Poland.

The law in question of heritage is the national law of the country in which the deceased was a citizen at the time of his death. Polish law would apply to a Polish citizen. If the deceased has more than one nationality, including Polish, Polish law remains in force. The law applicable to deceased persons being citizens of more than one country is that of the country to which the testator was connected most closely.

Polish courts have jurisdiction in respect of property located in Poland in inheritance proceedings.

The circumstances for perpetual usufruct, usufruct, easement and mortgage are similar. Where the deceased foreigner leaves property in Poland and the heir cannot confirm his or her inheritance rights in the court in the nationality of the deceased, the Polish Court shall have jurisdiction over the acquisition of the estate, regardless of whether the heir is a Polish citizen or an alien.

The Civil Division of the District Court competent for the last permanent place of residence of the deceased should have a request for confirmation of the inheritance. If this place cannot be confirmed, the court is the competent court in the geographical location of the estate. The trial of the court to determine whether a person is an heir involves a hearing which usually takes one to three months. Foreign court rulings confirming that a person is an heir depend on the Polish court's recognition of the decision. The request for recognition of a foreign judgment should be submitted to the District Court responsible for the geographical location to examine the problem.

The Polish court examines ex officio who the heir is, but cannot examine the components of the estate. If there is a dispute about property title ownership in the procedure, it is settled by separate proceedings. The country where the property is situated has jurisdiction in matters of ownership and other property rights, in accordance with Polish Private International Law.

According to Polish legislation, he/she must make a declaration to accept or deny the heritage within six months from the date on which the heir became aware of his/her appointment. Where the heir has not made a declaration within the period above, it shall be regarded as an unreserved acceptance (responsibility for debts). However, where the heir is a minor, or if the heir has not made a statement within six months, the inheritance is considered acceptable but limited to the value of the assets (without liability for debts).

Inheritance follows the provisions of the Civil Code if an individual dies intestate.

If there is no will, the children of the departed person and the surviving spouse automatically have the right to inherit equal parts under the statute; however, the spouse's portion may not be below one-quarter of the total estate. If there are no descendants in the intestate person, the surviving spouse, parents and siblings shall inherit by statute. A portion of the heritage that the surviving spouse inherits together with, or with parents or siblings or siblings of the deceased's parents and siblings, equal to one-half of the estate.

If a foreigner inherits property title in Poland, then the Law on Foreigner's acquisition of property does not apply until the foreigner has the right to inherit it under the deceased's statute. No permission is required by a foreigner who inherits an immovable in accordance with the foregoing.