Gift from abroad - tax and obligations in Poland

A gift from parents abroad - is it taxable in Poland?

More and more Poles receive financial support from parents living abroad. Money for buying a flat, renovation, studies or even a car - this is everyday life for many families scattered across Europe and the world. However, a question arises that surprises many recipients: is a gift from abroad subject to tax in Poland?

Contrary to popular belief, the fact that the money or assets come from abroad does not mean that Polish tax rules do not apply. The Polish Inheritance and Gift Tax Act focuses primarily on the status of the recipient. If the recipient holds Polish citizenship or lives permanently in Poland, the gift may be subject to Polish regulations - regardless of whether the donor lives in Germany, the Czech Republic, the United States or any other country.

This means that even parents living outside the European Union can pass assets to their child, and a tax obligation will still arise on the Polish side. This applies to money transfers as well as gifts of real estate, cars or other valuable assets.

Tax exemption for close family - the zero group

The key piece of information for people receiving gifts from their parents is the existence of the so-called zero group in inheritance and gift tax. It covers the closest family members, including parents, children, spouses, siblings, grandparents and stepchildren. Gifts between these persons may benefit from a full tax exemption, even if their value is very high.

It is worth stressing that a gift is not treated as income. Receiving money or assets from your parents does not give rise to an obligation to pay personal income tax (PIT). Such benefits are governed by separate, much more favourable provisions of the Inheritance and Gift Tax Act. The legislator deliberately created preferential rules, recognising that financial assistance within the closest family should not be excessively burdened with tax liabilities.

However, the zero group exemption is not unconditional. To claim it successfully, the recipient must complete strictly defined formalities. Neglecting them is the most common cause of problems with the Polish Tax Office (urząd skarbowy) - and unfortunately many taxpayers only find this out when it is already too late.

Formalities you must meet - step by step

Simply being a close family member of the donor is not enough for a gift to be automatically exempt from tax. The recipient must act actively and meet specific formal requirements. Here are the most important ones:

• Reporting the gift on form SD-Z2 - it must be submitted to the relevant tax office within 6 months of the date the gift was received. Missing this deadline may result in the loss of the right to the exemption.
• Documenting the transfer of funds - in the case of a cash gift, you must show that the money was transferred to the recipient's bank account. Both a bank transfer and a cash deposit made by the donor directly at a bank branch into the recipient's account are accepted (as confirmed by the Director of the National Tax Information (Krajowa Informacja Skarbowa) in an interpretation of 28 October 2024, no. 0111-KDIB2-2.4015.158.2024.1.KK).
• Notarial deed - required for a gift of real estate.
• Gift agreement - when transferring a car, equipment or other movable property, it is advisable to draw up a written agreement together with documents confirming the transfer of ownership.
• Keeping records - transfer confirmations, agreements and any evidence showing who made the gift, when it took place and what it consisted of.

In practice, it is precisely the failure to submit the SD-Z2 form on time or improper documentation of the gift that are the most common causes of disputes with the tax authorities. The tax office rarely questions the family relationship itself, but it scrutinises the formal side very closely.

Double taxation of cross-border gifts - a real risk

A particularly complicated situation arises when a gift is cross-border in nature. It may happen that both Poland and the country where the donor lives or where the gifted asset is located consider the same gift taxable in their territory.

The problem is that classic double taxation treaties concern primarily income taxes and, as a rule, do not cover inheritance and gift tax. Poland has concluded very few international agreements regulating this issue. As a result, the recipient may pay gift tax abroad and then Polish rules may also impose a tax obligation on them - with no possibility of deducting the tax paid in the other country.

This risk applies in particular to gifts of real estate located abroad and to gifts from persons living in countries that apply broad rules for taxing transfers of assets. In such cases, professional legal analysis becomes essential to determine the scope of tax obligations in both jurisdictions and minimise the risk of double taxation.

How to avoid problems with the tax office?

In the vast majority of cases, a gift from parents abroad should not generate any tax burden in Poland. The condition, however, is completing the formalities knowingly and on time. The key rules can be summarised as follows:

First, always report the gift on form SD-Z2 within the statutory six-month deadline. Second, make sure you have full documentation - transfer confirmations, agreements and notarial deeds. Third, if the gift concerns assets located abroad, check whether a tax obligation also arises in the other country. Fourth, if you have any doubts, consult a lawyer who specialises in tax law.

Remember that the consequences of neglecting the formalities can be severe - losing the tax exemption means having to pay inheritance and gift tax together with late payment interest. This is a cost that is easy to avoid by acting in advance.

Have you received a gift from family abroad and do not know what your obligations are towards the Polish tax authorities? Contact our firm - we will help you report the gift correctly, assemble the documentation and protect yourself against the risk of double taxation.