A family foundation is a relatively new legal form created to manage and protect family assets in Poland. A brief overview of this foundation can be found in our article.

The Act (Ustawa o fundacji rodzinnej z dnia 26 stycznia 2023) defines the basis and activities of a family foundation. A family foundation can be created by a founder who transfers his property to it, the minimum value of which is PLN 100,000. A family foundation can also be created in the form of a founding act during the founder's lifetime or in the form of a will. A foundation created in this way serves the beneficiaries, acting on their behalf and allowing them to benefit from family assets. Assets may include cars, shares, a brokerage account, a cryptocurrency miner, art objects, accounts receivable, etc.

A family foundation generates income from its own assets, material and financial benefits to the foundation's beneficiaries. The rights of beneficiaries of a family foundation may include:

• Using things, rights, money or other property of the foundation,
• Receiving funds to cover living or educational expenses,
• Using loans provided by the foundation.

A family foundation is exempt from income tax, provided that its activities are aimed exclusively at preserving or increasing family assets. In the event of the transfer of benefits – cash, goods or rights to beneficiaries or the founder - the foundation pays a tax at a rate of 15%. CIT in the amount of 25% is paid by family foundations that are actively engaged in entrepreneurial activity.

There are also special features of taxation of income and benefits received by beneficiaries (PIT). The first group, including, for example, the spouse of the founder and his relatives in the ascending line, is exempt from personal income tax. The remaining beneficiaries, depending on the degree of kinship, are taxed at a rate of 10% or 15%.