Iheritance and donation tax is regulated by the Polish act on inheritance and donation as of 28 July 1983 (consolidated text: Journal of Laws as of 2009, no 93, item. 768 with amendments)

According to art. 1 of the abovementioned act, the subject of iheritance and donation tax is the acquisition of property located on the land of Republic of Poland or property rights exercised on the land of Republic of Poland, in consideration of:

• inheritance, normal provision, latter provision, specific bequest, testamentary mandate;
• donation, benefactor’s mandate;
• usucaption;
• annulment of joint ownership without consideration;
• compulsory portion of inheritance, if an eligible heir did not receive it as a donation made by the bequeather, or in a way of succession, or provision;
• allowance, usufruct or easement without consideration.

Acquisition of property located abroad or property rights exercised abroad is subject to taxation if the acquiring party was a Polish citizen or had a permanent place of residence on the territory of Republic of Poland at the moment the inheritance was opened or a donation agreement was entered into.

As a rule, taxation basis is the value of acquired property and property rights after substracting debts and burdens (agreed value), determined according to the status of property or property rights on the acquisition day, and market prices from the day the tax obligation was created. If there is a property damage caused by force majeure prior to the income tax assessment, the assessment shall be made on the basis of the property state as of the day the assessment is conducted, the insurance compensation for the damage being included in the assessment base.

The acquisition of property or property rights by a spouse, descendants, ascendants, stepchildren, siblings, and step parents is tax free, in accordance with the provisions in art. 4a of the act, and in particular under condition that:

• they reported the acquisition to the proper head of tax office within 6 months since the day the tax obligation was created on the basis of art. 6 par. 1 point 2-8 i and par. 2 of the act, and especially in the case of acquisition by succession within the period of 6 months since the day the court decision stating the acquisition of tax became binding, subject to art. 4a par. 2 i 4 of the act, and
• in cases that the subject of acquisition in consideration of a donation or benefactor’s mandate is money, and the total value of property acquired from that person in the period of 5 years which precede the year of the most recent acquisition was included in the value of property and property laws most recently acquired exceeds the sum specified in art. 9 par. 1 point 1 of the act – document it using a proof of transfer to the acquiring party bank account or his or her account kept by a savings and credit union, or via postal order.

The abovementioned obligation to report does not involve cases when:

• the total value of property acquired from that person or as an inheritance from that person in the last 5 year since the year of the last acquisition added to the value of property and property rights acquired in the last order does not exceed the sum specified in art. 9 par. 1 point 1 of the act, or
• the acquisition takes place on the basis of the agreement entered into as a notarial deed.

The acquisition of property and property rights by the beneficiary from one person with an agreed value higher than (the value shall be subtracted by) is subject to tax:

• 9,637 zł – if the acquiring party is a person from the first tax group (defined below);
• 7,276 zł – if the acquiring party is a person from the second tax group (defined below);
• 4,902 zł – if the acquiring party is a person from the third tax group (defined below);

From the remaining sum, the following is calculated:

Excess amount in zł		THE AMOUNT OF TAX IS
Over	From
1) from the acquiring parties from the I tax group
	10,278	3%
10,278	20,556	308 zł 30/100 and 5% of the excess over 10,278 zł
20,556		822 zł 20/100 and 7% of the excess over 20,556 zł
2) from the acquiring parties from the II tax group
	10,278	7%
10,278	20,556	719 zł 50/100 and 9% of the excess over 10,278 zł
20,556		1,644 zł 50/100 and 12% of the excess over 20,556 zł
3) from the acquiring parties from the II tax group
	10,278	12%
10,278	20,556	1,233 zł 40/100 and 16% of the excess over 10,278 zł
20,556		2,877 zł 90/100 and 20% of the excess over 20,556 zł

Tax groups

1. I group – spouse, descendants, ascendants, stepchildren, son-in-law, daugther-in-law, step parents, parents-in-law;
2. II group – the siblings’ descendants, the parent’s siblings, the stepchildren’s descendants and spouses, the siblings and siblings of spouses’ spouses, the spouse’s siblings’ spouses, other descendants’ spouses;
3. III group – other acquiring parties.