Polish Family Foundation: A Guide for Foreign Entrepreneurs and Investors (2026)

Legal and tax overview as at 20 October 2026.

Poland offers foreign entrepreneurs more than a market in which to establish a business. It also provides a legal framework for holding business interests, organising family wealth and planning succession across generations.

Since 22 May 2023, Poland has had its own family foundation (fundacja rodzinna). The structure allows eligible assets to be separated from the founder’s personal estate and managed under a set of rules governing control, succession and distributions to beneficiaries.

For foreign entrepreneurs entering Poland, the foundation may form part of a wider structure involving a Polish operating company, foreign subsidiaries, investment assets and family members living in different countries. It is not, however, a substitute for an operating company, and its Polish tax treatment does not automatically determine how another country will tax the structure.

This guide explains how a Polish family foundation works, when foreign founders may benefit from it, how it is taxed, and how it compares with selected alternatives in Liechtenstein, Austria and Luxembourg.

1. What Is a Polish Family Foundation?

A Polish family foundation is a separate legal entity established to accumulate and manage assets for the benefit of designated beneficiaries and to implement the founder’s succession objectives. It is governed by the Act of 26 January 2023 on the Family Foundation (Journal of Laws 2023, item 326, as amended), which entered into force on 22 May 2023.

Its main characteristics include:

• Separate legal personality. The foundation owns the assets contributed to it. Beneficiaries have rights to benefits under its statute rather than direct ownership of its assets.
• Minimum founding fund. The statutory minimum is PLN 100,000 (Article 17 of the Act), contributed in cash or in kind.
• Foreign founders permitted. A natural person with full legal capacity may establish a Polish family foundation regardless of citizenship or tax residence.
• Flexible beneficiary arrangements. Beneficiaries may include the founder, family members and other natural persons, as well as public-benefit organisations.
• Governance under a statute. The statute determines the foundation’s objectives, beneficiaries, distribution rules and governance arrangements.
• Succession planning. The structure can keep ownership of business interests within a single entity rather than dividing them directly among heirs. As a rule, assets contributed to the foundation are no longer taken into account for the Polish reserved share (zachowek) once ten years have passed since the contribution.

The foundation is established by a notarial deed (or in a will) and acquires legal personality upon registration in the Register of Family Foundations maintained by the Regional Court in Piotrków Trybunalski. A foundation established by deed must be filed for registration within six months, otherwise it is dissolved by operation of law.

The founder may also serve on the management board and be a beneficiary, subject to the applicable legal and governance requirements. Once registered, the foundation keeps full accounting books, files the annual CIT-8FR return and reports its beneficial owners to the Central Register of Beneficial Owners (CRBR).

For a foreign founder, the key question is not simply whether a Polish foundation can be established. It is whether the foundation fits the intended business structure, the founder’s personal circumstances and the tax rules of the countries involved.

2. How a Polish Family Foundation Fits into a Business Structure

A Polish family foundation is primarily a holding, investment and succession vehicle. It is not designed to conduct unrestricted commercial operations itself.

A typical structure may look like this:

1. A foreign entrepreneur establishes or acquires an interest in a Polish operating company.
2. The entrepreneur contributes eligible shares or other assets to a Polish family foundation, following an assessment of the legal and tax consequences.
3. The foundation holds the shares in the operating company.
4. The operating company conducts its business and distributes dividends where appropriate.
5. The foundation retains eligible income for reinvestment or provides benefits to beneficiaries in accordance with its statute.

The foundation may hold interests in Polish and foreign companies, subject to the applicable legal and tax rules. This arrangement separates three functions:

• Business operations: carried out by the operating company.
• Ownership and capital allocation: managed through the foundation and its underlying investments.
• Family succession: governed by the foundation’s statute and applicable law.

The structure may be particularly relevant to a foreign entrepreneur who intends to build a long-term presence in Poland and wants to separate the ownership of a business from the personal succession arrangements of the founder.

However, contributing existing shares to a foundation is not automatically tax-neutral in every relevant jurisdiction. The transaction must be reviewed before assets are transferred.

3. Polish Family Foundation Taxation

The Polish family foundation regime provides a specific tax treatment for income from activities permitted by law. The principal advantage is the possibility of accumulating qualifying income within the foundation without immediate Polish corporate income tax, subject to statutory conditions. The tax analysis should distinguish three levels.

3.1. Corporate income tax at foundation level

Under Article 6(1)(25) of the Polish Corporate Income Tax Act, a family foundation benefits from a subjective CIT exemption. Under Article 6(7), the exemption does not cover business activity outside the scope set out in Article 5 of the Family Foundation Act. Permitted activities include, among other things:

• holding shares and participating in commercial companies, investment funds and similar entities;
• acquiring and disposing of securities and certain financial instruments;
• receiving dividends and other investment income;
• letting or leasing assets;
• granting loans to companies in which the foundation holds shares or participates as a partner, and to beneficiaries;
• disposing of assets, provided they were not acquired solely for resale.

The statutory catalogue is limited. A family foundation should not be treated as a general-purpose trading or service company. Income from business activity outside the permitted catalogue is subject to a 25% CIT rate under Article 24r of the Corporate Income Tax Act.

The classification of a particular activity matters. The legal and tax treatment of real estate transactions, lending arrangements and the acquisition and subsequent disposal of assets should be reviewed in the context of the actual facts.

3.2. Tax on distributions

Under the current rules (Article 24q of the Corporate Income Tax Act), the foundation pays 15% CIT on the value of:

• benefits provided or made available to beneficiaries;
• property transferred in connection with the foundation’s dissolution;
• so-called hidden profits, for example benefits provided to the founder, beneficiaries or related parties outside the statute or on non-market terms, and certain loans to beneficiaries.

This tax is separate from the beneficiary’s personal income tax position. A founder should therefore distinguish between:

• income accumulated within the foundation;
• income distributed to beneficiaries;
• income earned by underlying companies;
• taxes arising when assets are contributed, sold or transferred.

The overall effective tax burden depends on the transaction and the applicable rules. It should not be inferred from the foundation-level CIT rate alone.

3.3. Personal income tax for beneficiaries

Benefits received by the founder or members of the founder’s immediate family (in particular spouse, descendants, ascendants, siblings, stepchildren and step-parents) are exempt from Polish PIT under Article 21(1)(157) of the Personal Income Tax Act. Where the foundation has several founders, the exemption applies in the proportion attributable to the relevant founder.

Other beneficiaries pay Polish PIT at 10% (more distant relatives) or 15% (unrelated persons). The relationship between the founder and the beneficiary must therefore be established before the tax consequences of a distribution can be determined.

3.4. Example: retaining profits for reinvestment

Assume that a Polish operating company earns profits and distributes a dividend of PLN 100 to a family foundation. If the dividend qualifies for the foundation’s CIT exemption, no current Polish CIT is payable by the foundation on that income.

If the foundation subsequently provides a benefit of PLN 100 to a beneficiary, the foundation-level tax at the current 15% rate is PLN 15, calculated on the value of the benefit. Because the tax is paid by the foundation on top of the benefit, a foundation holding PLN 100 can distribute about PLN 87, with about PLN 13 going in tax. For the founder’s immediate family, no further Polish PIT is due.

If the funds remain in the foundation and are reinvested through permitted activities, the distribution tax is deferred until a taxable distribution or other relevant taxable event occurs.

The principal advantage is therefore not necessarily a lower tax rate on every withdrawal. It is the ability to retain and reinvest qualifying income within the structure. This distinction is important for foreign entrepreneurs comparing a family foundation with direct personal ownership or a conventional holding company.

4. What Foreign Entrepreneurs Should Check Before Establishing a Foundation

The Polish rules are only one part of a cross-border assessment.

4.1. Tax residence of the founder

A foreign founder may establish a Polish family foundation without becoming a Polish tax resident. Conversely, establishing a foundation does not itself determine the founder’s tax residence.

An individual is a Polish tax resident if their centre of personal or economic interests is in Poland, or if they stay in Poland for more than 183 days in a tax year, subject to the applicable double taxation agreement. A founder who relocates to Poland should therefore review personal tax residence separately from the foundation’s legal status.

4.2. Tax treatment in the founder’s home country

The founder’s country of residence may apply rules that differ from the Polish regime. Depending on the jurisdiction and the circumstances, these may include:

• rules treating a foundation as transparent for tax purposes;
• controlled foreign company or similar anti-deferral rules;
• taxation of distributions under domestic income tax rules;
• reporting or disclosure obligations;
• rules concerning contributions of assets to foreign entities, including exit taxation.

A Polish exemption does not bind the tax authorities of another country. The structure should be assessed from both the Polish and foreign tax perspectives before assets are contributed.

4.3. Foreign beneficiaries

A beneficiary living outside Poland may be taxed in their country of residence on a benefit received from the foundation. The relevant double taxation agreement may or may not provide relief for the Polish tax, depending on how the payment is classified and on the wording of the treaty.

It is therefore unsafe to assume that a benefit exempt from Polish PIT will also be exempt in the beneficiary’s home country.

4.4. Effective management and substance

The foundation should be managed in accordance with its actual legal and governance arrangements. If important decisions are made abroad, the founder should consider whether the facts could create tax residence, reporting or other compliance issues in another jurisdiction. The place of registration alone does not resolve every cross-border tax question.

4.5. Transferring existing assets

Before transferring shares, real estate or other investments, the founder should assess:

• Polish tax consequences;
• tax consequences in the country where the assets are located;
• tax treatment in the founder’s country of residence;
• transfer restrictions and corporate approvals;
• valuation requirements;
• reporting obligations and applicable anti-avoidance rules, including the Polish general anti-avoidance rule.

The result may differ significantly between a newly established Polish business and an existing international group.

5. Poland Compared with Liechtenstein, Austria and Luxembourg

A foreign entrepreneur considering a Polish family foundation may also examine other European structures. These jurisdictions should not, however, be treated as interchangeable.

Feature	Poland: Family Foundation	Liechtenstein: Stiftung	Austria: Privatstiftung	Luxembourg: SPF
Legal form	Family foundation	Foundation	Private foundation	Private wealth management company, not a foundation
Minimum initial assets	PLN 100,000	CHF, EUR or USD 30,000	EUR 70,000	Depends on the chosen company form
Main purpose	Family wealth management and succession	Private wealth structuring and other permitted purposes	Long-term asset management and succession	Management of qualifying private financial assets
Tax on retained income	CIT exemption for permitted activities; 25% outside the catalogue	Generally 12.5% income tax; qualifying Private Asset Structures pay only the CHF 1,800 minimum tax	Depends on the type of income; certain investment income is subject to interim tax (27.5% from 2026)	0.25% annual subscription tax (min. EUR 1,000, max. EUR 125,000); no corporate income tax
Distribution taxation	15% foundation-level CIT (19% proposed from 2027); immediate family PIT-exempt	Depends on the structure and the beneficiary’s residence	Generally 27.5% capital income tax, with credit for interim tax	Depends on the shareholder’s residence and the distribution rules
Commercial activity	Limited to the statutory catalogue	Depends on the structure; Private Asset Structure status excludes it	Restricted, subject to statutory exceptions	Excluded from the SPF’s permitted purpose
Typical application	Business ownership, reinvestment and family succession	Private wealth structuring and succession	Established private wealth and succession arrangements	Holding and management of eligible financial assets

Indicative comparison only. The tax treatment of each structure depends on its legal form, assets, activities, ownership arrangements and the tax residence of the relevant persons.

5.1. Liechtenstein

Liechtenstein foundations may be relevant to international families seeking a dedicated private wealth and succession structure. The statutory minimum capital for a foundation is CHF, EUR or USD 30,000, and at least one member of the foundation council must be a Liechtenstein trustee or a person with similar status.

Liechtenstein also provides a special Private Asset Structure (PVS) tax regime. Qualifying PVS structures are not subject to ordinary income tax but pay the minimum income tax of CHF 1,800. Eligibility is restricted to passive asset management, and the regime does not permit commercial activity. A PVS should not be confused with the standard taxation of every Liechtenstein foundation.

For an entrepreneur operating a business in Poland, the key question is how the foundation interacts with the Polish operating company, the founder’s tax residence and the applicable cross-border rules.

5.2. Austria

The Austrian Privatstiftung is an established structure for private wealth and succession planning. It requires assets of at least EUR 70,000 and a management board of at least three members. Its governance framework differs from that of a Polish family foundation, and the founder’s ability to control assets after their contribution must be considered carefully.

From 2026, the Austrian interim tax on specified categories of investment income is 27.5%. Distributions to beneficiaries are generally subject to capital income tax at 27.5%. The interim tax may be credited when qualifying distributions are made, so it should not be read as a simple additional tax on every euro of income.

Austria may be relevant where the family already has Austrian connections, assets or succession requirements.

5.3. Luxembourg: an alternative, but not a direct equivalent

Luxembourg is worth considering in an international wealth-planning analysis, but an important distinction must be made: its foundation regime is intended for public-interest purposes rather than private family wealth.

A Luxembourg private wealth management company, known as an SPF (société de gestion de patrimoine familial), may be an alternative for eligible private financial assets. The SPF is a company, not a family foundation. Its permitted purpose is restricted to managing qualifying financial assets, and it cannot be used as a commercial operating company or as a direct holding vehicle for real estate.

The SPF is exempt from corporate income tax and pays a 0.25% annual subscription tax, with a minimum of EUR 1,000 (raised from EUR 100 from 2025) and a maximum of EUR 125,000.

Luxembourg may therefore be relevant to a family with a financial investment portfolio. It should not be presented as a direct substitute for a Polish family foundation intended to hold a Polish operating business and implement family succession arrangements.

5.4. Which structure fits a foreign entrepreneur operating in Poland?

The answer depends on the purpose of the structure.

• A Polish family foundation may be worth examining where the founder wants to hold shares in a Polish business, retain qualifying investment income for reinvestment and establish long-term succession rules.
• Liechtenstein may be relevant to private wealth structuring, subject to the specific regime selected.
• Austria may be relevant where the family has an Austrian connection and is prepared to work within its governance and tax framework.
• Luxembourg’s SPF may be relevant to eligible financial portfolios, but it is not a family foundation and is not designed for commercial ownership or operation.

The comparison should begin with the business and family objectives, not with the headline tax rate.

6. Proposed Polish Tax Changes: What Foreign Founders Should Know

A first attempt to tighten the taxation of family foundations was vetoed by the President in November 2025. On 29 September 2026, the government adopted a new bill and submitted it to the Sejm as Print No. 3148. The bill proposes that the changes apply from 1 January 2027. As currently drafted, it would:

• raise the tax on distributions and other taxable benefits from 15% to 19%, for distributions made from 2027 regardless of when the profit was earned;
• withdraw the exemption from income on the sale of assets contributed to the foundation if they are sold within two years of the end of the year of contribution. The test would apply only to assets contributed from 2027;
• exclude short-term rentals and dwellings let through operators from the exemption, while keeping direct residential letting exempt;
• bring foundations within controlled foreign company and exit tax rules, and end the exemption for business income earned through tax-transparent entities;
• treat overdue loans to founders and related parties, and forgiven receivables, as hidden profits;
• extend the beneficiary PIT exemption to the founder’s nephews and nieces.

The proposed changes are not enacted legislation. Their final wording, commencement date and transitional provisions depend on the parliamentary process. The core of the regime, deferral of tax until distribution, would remain.

Foreign founders considering a contribution of assets, a disposal or a distribution should therefore assess the rules currently in force and separately review the potential impact of the bill, particularly for decisions planned before the end of 2026.

Legislative status as at 20 October 2026: Government Bill, Sejm Print No. 3148, amending the Personal Income Tax Act and the Corporate Income Tax Act, submitted on 29 September 2026. The proposed provisions should be checked against the latest official parliamentary documents.

7. When a Polish Family Foundation May Not Be Appropriate

A Polish family foundation is not necessarily the right choice for every foreign entrepreneur. It may be unsuitable where:

• the main objective is to conduct ordinary trading or service activities directly through the foundation;
• the founder expects unrestricted access to contributed assets;
• the structure is intended primarily for a short-term asset sale, which is a typical target of the general anti-avoidance rule;
• the founder or beneficiaries live in jurisdictions that may tax the structure or its income differently;
• the expected compliance costs are disproportionate to the assets involved;
• the founder needs a straightforward company rather than a long-term succession structure.

In these circumstances, a Polish limited liability company, a conventional holding company or another ownership arrangement may be more appropriate. The decision should follow an assessment of the business model, the assets involved, the founder’s residence and the intended beneficiaries.

8. How LEXCARTA Can Help

For a foreign entrepreneur, establishing a Polish family foundation involves more than registering a legal entity. It requires coordination between corporate structuring, Polish tax rules, family succession objectives and the laws of the countries connected with the founder and beneficiaries.

LEXCARTA assists international entrepreneurs and business families with:

• assessing whether a Polish family foundation fits their business and succession objectives;
• structuring Polish operating companies and holding arrangements;
• drafting the foundation statute and beneficiary rules;
• coordinating the contribution of shares and other eligible assets;
• reviewing Polish tax implications;
• coordinating with tax advisers in the founder’s and beneficiaries’ countries of residence;
• supporting registration, corporate documentation and ongoing compliance.

A Polish family foundation should be considered as part of a wider legal and tax structure rather than as an isolated tax product.

Frequently Asked Questions

Can a foreigner establish a Polish family foundation?

Yes. Polish law does not restrict the role of founder to Polish citizens or Polish tax residents. The founder must be a natural person with full legal capacity. The consequences in the founder’s country of residence should be reviewed separately.

Can a Polish family foundation hold shares in a Polish company?

Yes. Holding shares and participating in commercial companies are among the activities permitted by Article 5 of the Family Foundation Act. The operating business should be conducted by the company rather than directly by the foundation.

Is a Polish family foundation exempt from corporate income tax?

The foundation benefits from a CIT exemption for income from its permitted activities (Article 6(1)(25) of the CIT Act). The exemption is not unconditional: activities outside the permitted catalogue are subject to a 25% CIT rate.

How are distributions taxed?

The foundation currently pays 15% CIT on the value of benefits distributed to beneficiaries (Article 24q of the CIT Act). The founder and immediate family are exempt from Polish PIT on those benefits; other beneficiaries pay 10% or 15%. The beneficiary’s country of tax residence may apply its own rules.

What is the minimum founding fund?

The statutory minimum is PLN 100,000 (Article 17 of the Family Foundation Act). Contributions may be made in cash or in kind, subject to the applicable legal and tax requirements.

Is a Polish family foundation better than a Liechtenstein or Austrian foundation?

There is no universally preferable structure. Poland may be relevant where the founder has a Polish business or succession objective. Liechtenstein and Austria have different legal, governance and tax regimes. The appropriate choice depends on the founder’s circumstances and the assets involved.

Is Luxembourg a suitable alternative?

Luxembourg may be relevant to private financial wealth through its SPF regime. An SPF is a company rather than a family foundation and has a restricted permitted purpose. It is not a direct substitute for a Polish family foundation holding an operating business.

Will the proposed 2027 changes affect existing foundations?

As currently drafted, yes in part. The higher 19% rate would apply to all distributions made from 2027, including those funded by profits earned earlier, while the two-year sale test would apply only to assets contributed from 2027. The bill is not yet law and may change, so founders planning contributions or distributions should review both the current rules and the bill.

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This article provides general information and does not constitute legal or tax advice. Cross-border structures require individual analysis of Polish law, the founder’s tax residence, the beneficiaries’ tax positions and any applicable double taxation agreements. Last reviewed: 20 October 2026.

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