On May 22, 2023, the Family Foundation Act entered into force in Poland.
The Family Foundation can be an interesting investment vehicle not only for people living permanently in Poland, regardless of whether they have assets here or not.
Income from the current activity of the foundation is exempt from corporate income tax. Taxation only takes place when the funds are disbursed to the beneficiaries.
Any natural person can become a founder, regardless of place of residence or citizenship.
A family foundation may be established by one or more founders (exception: a foundation established in a will).
It is required to create an initial fund with a minimum value of PLN 100,000 (approx. EUR 22,000). It can be money, securities, real estate and other rights.
The basic objectives of the foundation are to protect the assets earned and to multiply them without tax burdens.
The founder determines the circle of beneficiaries and the scope of their rights. Any natural person can become a beneficiary, regardless of the degree of kinship with the founder.
A family foundation may operate in economic transactions:
Foundation management rules do not have to be complicated: they are largely determined by the founder himself.
One of the most important benefits of running a family foundation is the very favourable taxation mentioned above, especially when the contributed assets, the founder and the beneficiaries are in the circle of the immediate family:
From a business point of view, the advantages of family foundations include:
It is worth taking a closer look at the advantages of a family foundation in Poland and estimating whether it can be a sensible idea for protecting and multiplying capital for future generations.
If you have any questions in relation to this article, please get in touch with Tomasz Paszkowski.
Tomasz Paszkowski
Tax Advisor
JRD
Email: tomasz.paszkowski@jrd.pl
Phone: +48 22 654 02 14
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