It has been two years since the family foundation was introduced into the Polish legal system. This new institution has gained popularity among owners of family businesses, and its legal structure and tax benefits have made it an attractive tool for asset protection and succession planning. However, there is growing discussion in the background about potential changes to its taxation—sparking both interest and concern among beneficiaries and founders.
Family foundation – an attractive tool that quickly gained significance
The core idea behind the family foundation was to ensure the durability of wealth within a family, with the possibility of making distributions to beneficiaries. Thanks to favorable tax regulations, the foundation allows for assets to be consolidated under a single entity and succession to be planned without the need for ownership restructuring or tax burdens at the point of asset transfer.
So far, the regulations have allowed for the avoidance of income tax when transferring assets to the foundation, as well as the application of a preferential 15% corporate income tax (CIT) rate for distributions to close family members. These provisions generated considerable interest—the number of registered foundations exceeded expectations, and the structure began to be used not only by family business owners but also by wealthy individuals seeking a secure capital management tool.
Proposed changes – will the foundation remain this beneficial?
As the number of foundations grew, concerns emerged about potential misuse and overly broad application of the structure for tax optimization purposes. This triggered a debate about the need to revise the regulations. Government circles began considering changes to the tax framework that would curb possible tax avoidance without undermining the core purpose of the institution.
Suggestions for legislative amendments had been floated earlier, and plans indicated that such changes might be implemented by mid-2025. However, to date, no concrete draft has been presented that would define a new taxation model for family foundations. It also remains unclear whether any such proposal will be submitted to Parliament—and if so, in what form.
Experts call for caution
Tax advisors and representatives of family businesses are urging caution. In their view, amending the legislation only two years after its implementation could undermine confidence in the state as a stable legal partner. From the entrepreneurs’ perspective, a family foundation is a long-term planning tool, not a short-term tax workaround.
It is also emphasized that tax authorities already have mechanisms at their disposal to prevent abuse—such as audits, protective opinions, or general anti-avoidance clauses. Any new regulations should not penalize all founders for the actions of a few who misuse the structure.
What does the future hold?
Current regulations provide for a formal review of the law only after three years of operation. It is only then—mid-2026—that a comprehensive analysis will be conducted to assess the functioning of family foundations, including their tax implications, level of adoption, and any systemic risks.
Until then, all changes remain speculative. For many founders and beneficiaries, this is good news—it means that, for now, the existing benefits can still be used for long-term planning. At the same time, it is important to closely monitor legislative developments in order to respond appropriately to any future government initiatives.