POLAND Law and Practice Contributed by: Wiesław Oleś, Krzysztof Rysz, Joanna Sarkowicz and Kamil Kania, Oleś, Rysz, Sarkowicz
the use of specialised vehicles, such as the Polish family foundation, to manage industry-specific capital requirements and regulatory frameworks. 2. Residency and Domicile for Purposes of Wealth and Estate Planning 2.1 Determining Domicile Legal Concepts of Residence and Habitual Residence Under Polish private international law, the equivalent of “domicile” is the “place of residence”, defined as the locality where an individual stays with the intent of permanent residence. This definition combines factual presence with a subjective intent to remain. In contrast, EU law utilises the concept of “habitual residence”, which focuses primarily on the objective centre of life interests and factual circumstances. Inheritance Taxation of Local and Global Assets Polish inheritance tax applies to all assets located or rights exercised within Poland, regardless of the ben- eficiary’s status. For foreign assets, tax liability is trig- gered if the beneficiary is a Polish citizen or resident at the time the succession opens. Since Poland has entered into very few bilateral treaties regarding inher- itance tax, cross-border estates involve a significant risk of double taxation. Succession Jurisdiction and Choice of Law Pursuant to Regulation (EU) No 650/2012, jurisdiction and the applicable law for the entire estate are typi- cally determined by the deceased’s habitual residence at death, though testators may elect their national law via a valid will. The European Certificate of Succes- sion significantly streamlines the process of proving rights to assets inherited under foreign law within the EU. Conversely, non-EU citizens often encounter substantial difficulties in demonstrating the effective acquisition of Polish assets, particularly real estate, when relying on foreign succession laws. Matrimonial Property and Divorce Jurisdiction Poland is not a party to EU Regulations 2016/1103 or 2016/1104, meaning marital property regimes are governed by bilateral treaties or domestic private
international law. Generally, the common national law of the spouses prevails, followed by the law of their joint residence or the state with the closest con- nection. Divorce jurisdiction is separately governed by Regulation (EU) 2019/1111, where Polish courts assume authority primarily based on the habitual resi- dence of the spouses. 2.2 Income Tax Residency Criteria for Establishing Tax Residency In Poland, income tax residency is primarily deter- mined by an individual’s “place of residence” within the territory. An individual is deemed a resident if they maintain a centre of personal or economic interests – often referred to as the “centre of vital interests” – within Poland or stay in the country for more than 183 days during a tax year. Meeting either of these inde- pendent criteria establishes residency, which triggers comprehensive reporting and payment obligations to the Polish tax authorities. Tax Liability and Double Taxation Relief Polish tax residents are subject to unlimited tax liabil- ity, meaning their entire worldwide income is taxable in Poland regardless of the source or location of the assets. Conversely, individuals who do not meet the residency criteria are subject to limited tax liability, covering only income sourced directly from Polish ter- ritory (such as earnings from employment in Poland or income from Polish-based real estate). Potential issues of double taxation for residents with global interests are typically addressed through the extensive network of bilateral tax treaties concluded by Poland, which generally follow OECD standards. 3. Intestacy and Forced Heirship Laws 3.1 Intestate Succession Statutory Framework and Formalities In Poland, testamentary succession takes precedence over statutory rules, which apply only in the absence of a valid will or if the designated heirs are unable or unwilling to accept the estate. Formal acceptance via a notarial deed or court order is a prerequisite, with the “benefit of inventory” serving as the prevailing stand- ard to limit liability for estate debts to the net value of assets. Heirs must formally decide whether to accept
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