Inheritance Tax in Poland – Tax Groups, Exemptions and the SD-Z2 Form

Quick Answer

Poland taxes inheritances and gifts (podatek od spadków i darowizn) at rates that depend on the heir's relationship to the deceased, split into three tax groups. The most important rule: close family in the zero tax group (spouse, children, grandchildren, parents, grandparents, siblings, stepchildren, stepparents) can be fully exempt regardless of the estate's value, provided they file the SD-Z2 form within 6 months of the inheritance becoming legally binding. Miss that deadline and the exemption is lost, taxing the inheritance at Group I rates (3%–7%).

• Group I (close family): tax-free allowance 36,120 PLN, rates 3%–7%
• Group II (extended family): allowance 27,090 PLN, rates 7%–12%
• Group III (unrelated): allowance 18,060 PLN, rates 12%–20%
• Zero group: full exemption if SD-Z2 filed within 6 months

Overview of Inheritance Tax in Poland

Poland levies a tax on inheritance and gifts (podatek od spadków i darowizn), governed by the Act of 28 July 1983. The tax obligation arises upon acquiring assets through inheritance, bequest, testamentary instruction, specific bequest (zapis windykacyjny), or zachowek (reserved portion).

The good news: Polish inheritance tax is relatively mild compared to many Western European countries, and close family members can obtain full exemption regardless of the estate's value.

The Three Tax Groups

The tax rate depends on the relationship between the deceased and the heir. The law defines three tax groups:

Group I – Close Family

Members:

• Spouse
• Descendants (children, grandchildren, great-grandchildren)
• Ascendants (parents, grandparents)
• Siblings
• Stepchildren
• Sons-in-law, daughters-in-law
• Stepparents
• Parents-in-law

Tax-free allowance: 36,120 PLN (as of 2025/2026)

Tax rates (on the excess above the allowance):

Group II – Extended Family

Members:

• Descendants of siblings (nephews, nieces)
• Siblings of parents (uncles, aunts)
• Descendants and spouses of stepchildren
• Spouses of siblings
• Siblings of spouses
• Spouses of siblings of spouses
• Spouses of other descendants

Tax-free allowance: 27,090 PLN

Tax rates:

Group III – Unrelated Persons

Everyone else, including:

• Friends
• Unmarried partners (cohabitants)
• Complete strangers

Tax-free allowance: 18,060 PLN

Tax rates:

The Zero Tax Group – Full Exemption

The most important provision for families is the zero tax group (article 4a of the Act). It includes:

• Spouse
• Descendants (children, grandchildren)
• Ascendants (parents, grandparents)
• Siblings
• Stepchildren
• Stepparents

Persons in the zero group can be completely exempt from tax, regardless of the estate's value, provided they:

1. Report the acquisition to the tax office using the SD-Z2 form.
2. Meet the deadline – 6 months from the date the court decision on inheritance becomes final, or from the date the notarial deed of inheritance (akt poświadczenia dziedziczenia) is registered.

Warning: Missing the 6-month deadline means losing the exemption and paying tax according to Group I rates.

The SD-Z2 Form – How to File

The SD-Z2 form (Zgłoszenie o nabyciu własności rzeczy lub praw majątkowych) is the key document for claiming the zero group exemption.

Who Files SD-Z2?

Persons in the zero tax group who want to claim the inheritance tax exemption.

Where to File?

At the tax office (urząd skarbowy) competent for:

• The location of the inherited real estate (if applicable).
• The deceased's last place of residence (in other cases).

The form can be submitted in person, by mail, or electronically via the e-Deklaracje platform.

Deadline

6 months from:

• The date the court decision on inheritance becomes legally binding, or
• The date the notarial deed of inheritance is registered.

What to Include

1. Taxpayer's data – name, PESEL number, address.
2. Deceased's data – name, date of death.
3. Title of acquisition – inheritance, bequest, zachowek, etc.
4. Supporting document – court decision or notarial deed.
5. List of acquired assets – with their market value as of the date of acquisition.

Common Mistakes

• Missing the 6-month deadline – the most critical error, resulting in loss of exemption.
• Incorrect asset valuation – the tax office can challenge undervalued assets and order a professional appraisal.
• Incomplete information – missing signature, incomplete description of acquired items.

Other Exemptions

Housing Exemption

Inheritance of a residential building or apartment (up to 110 m²) may be exempt, provided the heir:

• Does not own another residential property.
• Is not a tenant of another property.
• Will reside in the inherited property for at least 5 years from acquisition.

Exemption for Persons with Disabilities

Persons classified as having a first-degree disability or being permanently unable to work may qualify for additional reliefs.

Calculating Inheritance Tax – Example

Scenario: Piotr (35 years old) inherits an estate worth 150,000 PLN from his uncle (Group II).

Calculation:

1. Tax-free allowance for Group II:

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FAQ

What is the tax-free allowance for Group I inheritance in Poland?

The tax-free allowance for Group I (close family such as spouse, children, parents, and siblings) is currently 36,120 PLN as of 2025/2026. Amounts inherited above this threshold are taxed at progressive rates from 3% to 7%, and the allowance applies cumulatively to acquisitions from the same person over a five-year period.

How can close family members get a full exemption from inheritance tax?

Members of the "zero group" (spouse, descendants, ascendants, siblings, stepchildren, stepparents) can be fully exempt from inheritance tax regardless of estate value, but they must file the SD-Z2 form within six months. The deadline runs from when the court ruling becomes final or when the notarial deed of inheritance is registered.

What happens if I miss the six-month SD-Z2 deadline?

Missing the deadline means losing the zero-group exemption entirely, and the inheritance is then taxed according to Group I rates (3-7%). This is one of the most common and costly mistakes Polish heirs make, particularly when estates include real estate or significant investment assets.

What are the inheritance tax rates for unrelated persons (Group III)?

Group III, which includes friends, cohabitants, and strangers, has the smallest tax-free allowance (18,060 PLN) and the highest rates: 12% up to 11,833 PLN, 16% between 11,833-23,665 PLN, and 20% above that. Unmarried partners fall into this group regardless of relationship length, which is a key estate planning consideration.

Is the housing exemption available alongside the SD-Z2 exemption?

The housing exemption is a separate relief available for inheriting a residential property up to 110 m², provided the heir does not own another home and will reside there for at least five years. It is most relevant for heirs in tax groups other than the zero group, since close family already qualifies for full SD-Z2 exemption.