Polish Family Foundation

 A Polish family foundation is a legal entity established for the purpose of accumulating assets, managing them in the interests of the founder and beneficiaries, and providing benefits to them, including covering living expenses or education costs. It is created upon registration; the founder may only be a natural person, regardless of their citizenship or place of residence (including abroad). The minimum founding capital is PLN 100,000 (approximately EUR 25,000). The register of foundations is maintained by a specialised registration court, which ensures the security of the foundation and compliance with local regulations.

Since its introduction in 2023, we have observed significant interest in this new form of family wealth management, as evidenced by the establishment of more than 2,500 foundations across Poland.
 
The key advantages of a family foundation include:

• The ability to conduct income-generating activities, including the sale of assets, leasing and rental, acquiring and holding shares or stocks, trading in securities and derivatives, and granting loans.
• Exemption from current corporate income tax (CIT) – as a rule, the foundation is exempt from CIT on permitted business activities
• 0% personal income tax (PIT) – on benefits provided by the foundation to the founder and their immediate family
• No capital gains tax – capital gains derived from the foundation’s investments (e.g. dividends, interest, disposal of securities, rental income) are not subject to ongoing taxation
• Asset protection – the foundation’s assets are separate from those of the founder and beneficiaries; in principle, the founding capital cannot be returned to the founder, and enforcement cannot be carried out against the foundation’s assets for the obligations of the founder or beneficiaries.