Cross-border inheritances are becoming increasingly common as families and assets spread across different countries. For individuals residing in Poland, receiving inheritance from abroad involves not only emotional and practical considerations but also important legal and tax obligations.
Who Manages Foreign Inheritances?
When a will or trust is administered outside Poland, the process is usually handled by a local executor, trustee, or estate administrator. Their role is to ensure that the deceased’s wishes are fulfilled and that the estate is properly distributed to the beneficiaries.
For Polish residents, this often means receiving cash transfers, real estate, securities, or other financial assets from abroad. While the legal framework of inheritance is primarily determined by the law of the deceased’s country, beneficiaries in Poland must also comply with domestic reporting and tax requirements.
Do Beneficiaries in Poland Need to Report Foreign Assets?
Under Polish law, residents are obliged to report all assets received by inheritance, even if the inheritance is fully administered abroad. This applies to both wills and trust-like structures.
Failure to report may lead to tax penalties. To avoid complications, many beneficiaries choose to work with legal or tax advisors who can assist in preparing the necessary documents and ensure compliance with Polish tax rules.
Taxation of Foreign Inheritances
Polish inheritance and gift tax applies to foreign assets if the heir is a Polish citizen or has permanent residence in Poland at the time of inheritance. Assets are valued at their market value on the date of death, which forms the basis for calculating tax liability.
The tax rates depend on the heir’s relationship with the deceased:
● Group I (close family, including spouse, children, parents, siblings): 3%–7%
● Group II (extended family, such as cousins, in-laws): 7%–12%
● Group III (unrelated persons): 12%–20%
In addition, beneficiaries must file a tax declaration (SD-3) within one month of receiving official confirmation of inheritance, such as a court decision or European Certificate of Succession.
Avoiding Double Taxation
A common concern is double taxation, where both the foreign country and Poland impose inheritance taxes. To prevent this, it is essential to verify whether Poland has a double taxation treaty with the country of the deceased. In many cases, such agreements allow heirs to claim exemptions or credits, reducing the overall tax burden.
What Documents and Formalities Are Required?
The transfer of inheritance funds to Poland requires meeting certain formalities:
● Identity verification of the beneficiary,
● Certified translations of relevant documents,
● Verification of the bank account receiving the funds,
● Completion of additional tax or legal documents when requested.
Preparing documents and personal data in advance can make the process smoother and prevent delays in receiving the inheritance.
What Should Heirs in Poland Keep in Mind?
Inheritances from abroad must be reported and taxed in Poland, even if the estate is administered elsewhere. Beneficiaries should always verify whether double taxation agreements apply to their situation, as this may significantly reduce the overall burden.
Proper planning and consultation with legal or tax professionals can help avoid delays, penalties, or misunderstandings, ensuring that the inheritance process is handled smoothly and in compliance with Polish law. For further reading on international inheritance matters, visit Dudkowiak.com. International inheritance cases require careful attention to Polish legal and tax rules, from verifying documents to fulfilling reporting obligations.
Whether it concerns cross-border transfers, taxation, or compliance with international treaties, professional guidance can protect heirs from costly mistakes. If you are about to receive inheritance from abroad and reside in Poland, contact our legal team to ensure a safe and efficient process.
