What the proposed amendments entail:
- A 36-month lock-up period relating to the tax-free disposal of assets contributed/transferred free of charge to the FR or acquired from a related party (including those purchased from a related party). Exemption from CIT on the sale only after 36 months (calculated from the end of the year in which the FR received/acquired the assets – in extreme cases, almost 4 years);
According to the draft, the above will apply to assets contributed, transferred or acquired by the FR after 31 August 2025.
- Renting/leasing of residential property. CIT exemption only if the FR rents directly and exclusively for residential purposes; the burden of proof lies with the FR. Short-term rentals/accommodation services (e.g. hotels, guesthouses) are excluded from the exemption;
- No CIT exemption for income from holdings in tax-transparent companies and certain other entities if they are not subject to CIT or are exempt from taxation;
- The FR will be subject to the rules on controlled foreign companies (CFCs);
- FR is subject to the rules on Exit Tax;
- Hidden profits – broader scope. Loans granted to a wider range of related entities and the write-off or expiry of such loans are to be treated as hidden profits.
Timeline:
most changes from 1 January 2026; the lock-up will apply to assets acquired after 31 August 2025 (i.e. effectively from 1 September 2025).
What this means in practice
- Sales of assets
- Tax-free only after 36 months – if the assets were contributed to the FR free of charge or acquired from a related party.
- The clock starts ticking from the end of the year of acquisition/contribution – in reality, this amounts to a 36–48-month ‘grace period’ depending on the transaction date.
- Note the dates: the new rules apply to property acquired after 31 August 2025 (not to assets acquired earlier).
Rental of residential property
- The CIT exemption applies only where the taxpayer lets the property directly (without agents or letting operators) and solely for residential purposes.
- Accommodation (short-term lets) and hotel/guesthouse operations – excluded from the exemption.
- The FR must prove that the conditions for the exemption are met (residential purpose, direct letting).
Structures involving related entities
- Income from shares in partnerships and certain exempt/non-taxable entities – not exempt.
Financing and loans
- Loans granted to beneficiaries/the founder/related entities (including those related to the FR) and their write-off/statute of limitations – hidden profits (taxation on the part of the FR).
CFCs and exit tax
- CFC income attributed to the FR – taxed on the FR side.
- The exit tax is to apply to the FR on the terms set out in the draft (change of tax regime/transfer of assets abroad).
Link to the draft amendments:
https://legislacja.rcl.gov.pl/projekt/12401555/katalog/13152704#13152704
Frequently asked questions
Can I sell assets contributed to a family foundation without paying capital gains tax?
Exemption from CIT when selling assets contributed free of charge or acquired from a related entity will be possible only after 36 months have elapsed. This period is calculated from the end of the calendar year in which the foundation received or acquired the property. In practice, this means a waiting period lasting from 36 to even 48 months depending on the transaction date.
Will a family foundation be exempt from CIT on rental income from residential properties?
CIT exemption applies only when the foundation rents out property directly and exclusively for residential purposes. The foundation must prove that these conditions are met, and the burden of proof rests on it. Short-term rental and accommodation services, such as hotels or guesthouses, are excluded from the exemption.
Will loans granted by a family foundation to related entities be taxed?
Yes, loans granted to beneficiaries, the founder, or other related entities may be recognized as hidden profits. Forgiveness or statute of limitations on such loans are also subject to taxation, resulting in the foundation being charged CIT on the value of these amounts.
Will a family foundation be subject to controlled foreign company regulations?
According to the draft amendment, a family foundation will be subject to controlled foreign company regulations. This means that income attributed to the foundation under CFC rules will be taxed at the foundation level. Additionally, the foundation will be covered by Exit Tax provisions when transferring assets abroad.
When will the new rules regarding taxation of family foundations come into effect?
Most changes will come into effect on January 1, 2026. However, the waiting period for asset sales will apply to property acquired after August 31, 2025. This means that these rules practically apply to transactions made from September 1, 2025.
Running a company with a matter to resolve?
That is where most conversations with a lawyer begin. A consultation is paid, PLN 600 net. You pay for a real opinion: whether you have a legal problem, what you can do about it and roughly what it costs. It ties you to nothing further, and you do not need to know the law, that part is on us.
- 1 Talk
You tell us what is going on, in your own words.
- 2 What next
We tell you your options and what it costs.
- 3 We act
You give the go-ahead and the matter is ours.
I specialize in Polish tax law, particularly income taxes, as well as international tax law. My experience includes, among others. providing ongoing tax advisory services, preparing legal and tax opinions, drafting requests for individual interpretations, conducting tax reviews. I gained professional experience in Warsaw law firms.
View profile →
