Why Choose a Polish Family Foundation?

A family foundation in Poland is currently one of the most effective tools for asset protection. Once transferred, the assets become the property of the foundation and are shielded from third-party claims against the founder or beneficiaries. Even in the event of the founder’s financial difficulties, the foundation’s assets are not included in bankruptcy proceedings.

The Polish family foundation allows for deferring taxation—profits from the foundation’s investment activities are taxed only when distributions are made to beneficiaries. For small taxpayers, the CIT rate can be reduced to 9%, while the standard CIT rate for a family foundation is 15%. Additionally, distributions to immediate family members may be completely exempt from personal income tax (PIT).

A foundation enables long-term capital management and reinvestment of profits without the immediate need to settle taxes. It is an ideal solution for succession planning and preserving wealth for future generations.

The Polish Family Foundation Act gives the founder broad discretion in shaping how the foundation operates: one can freely decide who the beneficiaries are and under what conditions, define the powers of various governing bodies, and determine how future changes to the foundation should be made.

The family foundation is a completely new institution within the Polish legal system—no similar solution existed before. It opens up unique opportunities for wealth planning that were previously only available through foreign legal structures.