Family foundation – new regulations

Act amending the Corporate Income Tax Act

adopted on October 17, 2025 (print no. 1753)

1. Key changes.

• Lock-up

The application of preferential taxation of the sale of assets (shares, company stocks) by a family foundation will be conditional on retaining ownership of these assets for a period of 36 months from the end of the calendar year in which they were contributed to the family foundation.

Applies to assets contributed from 2026 and sold before the lock-up period.

• Taxation of rentals

Long-term residential rentals will be exempt from tax when a family foundation directly rents real estate to individuals for their own residential needs. The rental of residential buildings and residential premises for purposes other than residential (e.g., short-term rentals, apartment accommodation, condo hotel rentals) will be subject to income tax.

Applies to non-residential rental income earned from 2026.

• Extension of the list of hidden profits

Granting a loan to the founder, beneficiaries or entities related to them or to a family foundation will be considered as generating hidden profits if: (i) the loans were repayable and have not been repaid by the date of filing the next tax return, (ii) they were granted or the loan agreement was in force for a period of at least 10 years, or (iii) the receivables under the loan agreement were written off, time-barred or written off as uncollectible.

• Taxation of the income of a foreign controlled entity, known as CFC.

The profits of foreign subsidiaries of a family foundation may be taxed in Poland to prevent the creation of artificial structures that transfer profits to tax havens.

• Exit tax

The transfer of assets abroad or a change in the tax residence of a family foundation requires the settlement of tax on income from unrealized gains, i.e., on the increase in the value of assets, as if those assets had been sold.

1. Recommendations

The new regulations apply to family foundations to which assets are to be contributed and then disposed of. Assets contributed to a family foundation before the act comes into force, i.e., before January 1, 2026, will be subject to more favorable tax treatment in the event of the disposal of selected assets of that property.

In the case of real estate, it is necessary to consider whether it is intended for long-term rental for residential purposes.

1. Next legislative steps

2. Senate

The bill has been forwarded to the Marshal of the Senate. The next Senate session is scheduled for October 29 and 30.

• President

The President signs the bill within 21 days of receiving it from the Marshal of the Sejm.

The President has the right to refuse to sign the bill (veto) and refer it back to the Sejm for reconsideration or refer it to the Constitutional Tribunal to check its constitutionality. At present, the President's Office has not issued any comment on a possible objection to signing the bill.

• Entry into force of the new regulations

The new regulations are scheduled to come into force on January 1, 2026.