Family foundation 2027 – planned changes to taxation

The planned amendment could significantly limit the tax flexibility of family foundations. Among other things, the draft assumes raising CIT on benefits from 15% to 19%, introducing a lock-up period for the sale of certain assets, narrowing the preference for property rental, and bringing family foundations within the scope of CFC and exit-tax rules. For existing foundations, an audit of the structure and of planned transactions before the end of 2026 could be key.

Legislative and legal status of this article: 23 August 2026. All the solutions described are at the draft stage – they are not law in force. Under the draft, the planned effective date of the changes is 1 January 2027, although the final scope of the regulations may still be modified during the legislative process.

Key changes at a glance

The table below sets the current rules against the solutions envisaged in the draft. If the regulations enter into force in the proposed shape, the most significant practical effects will be: a higher CIT rate, a lock-up on the sale of contributed assets, and a narrower exemption for rental income.

Why is the Ministry of Finance planning changes to family foundations?

The Ministry of Finance justifies the draft by reference to how family foundations have been used in practice. According to the draft's explanatory memorandum, some structures were geared primarily towards short-term tax optimisation – for example, the quick sale of contributed assets under the exemption regime – rather than towards the multi-year succession and wealth accumulation for which the family foundation was originally designed.

The figures quoted in the public debate – on the number of registered foundations, the scale of revenue benefiting from the exemption, foundations' income and budget revenue – come from Ministry of Finance materials and the draft's explanatory memorandum. They are not calculations produced by Zwyrtek Group.

From the founders' perspective, one thing is important: the draft does not abolish the family foundation as an institution, but it shifts the point of tax balance. We write more about how this institution currently operates in our piece on the family foundation.

CIT on benefits is to rise from 15% to 19%

The most important planned change is raising the corporate income tax (CIT) rate from 15% to 19% on benefits paid to beneficiaries, on liquidation assets transferred in connection with dissolving the foundation, and on so-called hidden profits.

The impact of the change depends on the beneficiary's status:

• the founder's closest family – the burden essentially remains at the level of the foundation and would rise from 15% to 19%, with the personal income tax (PIT) exemption on the beneficiary's side retained;
• more distant family subject to 10% PIT – the combined tax burden could potentially rise to around 29%;
• unrelated persons subject to 15% PIT – the combined burden could potentially reach around 34%.

Particularly significant is the absence of any proposed mechanism protecting the previous rate. If the regulations enter into force in the proposed shape, the 19% rate could also apply to profits accumulated by the foundation before 2027, provided they are paid out to beneficiaries after the changes take effect. This is an argument for reviewing the schedule of planned distributions already in 2026, as part of tax advisory.

A 36-month lock-up on selling contributed assets

The draft envisages restricting the CIT exemption for the sale of assets contributed to the foundation by the founder or acquired from related parties. The exemption would only be available after 36 months had elapsed – counted not from the date of contribution, but from the end of the calendar year in which the contribution or acquisition took place.

In practice this means a lock-up period longer than a nominal three years. Example: an asset contributed to the foundation in January 2027 would only start the period running on 31 December 2027, and the 36 months would elapse on 31 December 2030. An exempt sale would therefore only be possible from January 2031 at the earliest – the actual lock-up would be around 48 months. Depending on the month of contribution, this period may range from 37 to 48 months.

Under the draft, the new rules would apply to assets contributed or acquired after 31 December 2026. It is also worth distinguishing two levels of taxation: selling an asset before the lock-up period expires would mean taxing the income from the sale at the level of the foundation, whereas a later distribution of a benefit to a beneficiary is a separate event – taxation of the value of the benefit under the rules described in the previous section.

The family foundation and property rental after the changes

The draft narrows the tax preference for rental. The exemption would essentially cover direct, long-term rental of residential premises to individuals for their own housing needs. Other rental models would require an individual tax analysis.

Residential rental

Long-term residential rental provided directly to individuals should – under the draft – retain preferential treatment. This is the safest model under the proposed shape of the regulations.

Commercial rental

Renting offices, retail space and warehouses would as a rule be taxed. For foundations whose revenue consists significantly of commercial rental, the draft could mean a lasting change in investment economics.

Short-term rental and aparthotels

Short-term rental and aparthotel-type models carry the risk of being classified as activity falling outside the exemption. In an extreme case, the risk of classification as impermissible activity, subject to the 25% sanction rate, cannot be ruled out.

Rental to the foundation's own operating company

A popular model in which the foundation rents property to its own operating company would also require review. The draft does not provide a preference for it, and the related-party relationship additionally increases the risk of a dispute with the tax authorities.

Loans, receivables and hidden profits

The draft expands the catalogue of so-called hidden profits – benefits treated as a distribution to a beneficiary or founder, taxed at the level of the foundation. The catalogue would cover, among other things:

• loans granted for a period of at least 10 years;
• overdue loans;
• receivables that are time-barred, written off or uncollectible.

The last group is particularly significant economically: if the regulations enter into force in the proposed shape, a foundation could pay tax on a hidden profit despite a genuine, economic loss of capital lent to an entity that has become insolvent. All loans and receivables within the family group should be reviewed before the end of 2026 – in terms of deadlines, documentation and actual repayment.

CFC, exit tax and cryptocurrencies

The draft brings family foundations within the scope of regulations previously associated with international tax planning. CFC (controlled foreign company) rules concern the taxation of income of foreign companies controlled by a Polish taxpayer. Exit tax is a tax on the transfer of the value of assets or tax residence abroad. If the draft is enacted, structures involving foreign entities and plans to relocate assets will need to be assessed against both sets of rules.

The draft also provides for a clear resolution regarding digital assets: trading in cryptocurrencies would be treated as impermissible activity for a family foundation, subject to the 25% sanction CIT rate. Foundations with exposure to crypto-assets should plan to put this in order before the planned effective date of the changes.

Which of the planned changes are favourable?

The draft is not purely restrictive. Two solutions deserve attention as favourable.

First, the draft extends the PIT exemption for benefits to the descendants of the founder's siblings. This is a significant change for family foundations set up jointly by siblings – until now, beneficiaries in this group were treated less favourably than the closest family.

Second, the draft provides for a window in 2027 for withdrawing certain residential properties. This solution could allow part of the assets to be reorganised without the consequences that would normally accompany the transfer of assets in connection with dissolving the foundation. The details of this mechanism are worth monitoring as the legislative work progresses.

What should a founder check before the end of 2026?

If the regulations enter into force in the proposed shape, the second half of 2026 will be the last period for action under the current legal regime. A practical checklist for founders and managers of family wealth:

• verify assets earmarked for contribution or sale;
• analyse planned contributions of shares and property;
• review all loans and receivables;
• analyse property rental conducted by the foundation;
• verify foreign companies and investments for CFC and exit-tax exposure;
• assess beneficiaries' status and their relationship to the founder;
• analyse planned distributions of benefits;
• compare scenarios: maintaining, reorganising or possibly dissolving the foundation;
• prepare a timeline of actions for 2026 and 2027.

This checklist is worth linking to a broader family business succession plan (available in Polish) – tax changes should not determine the architecture of family wealth in isolation from the family's goals.

Will the family foundation still be worthwhile?

The short answer: yes, but in a changed role. The family foundation does not stop being a useful tool for succession, protecting the integrity of assets and long-term capital accumulation. The planned changes could, however, reduce its appeal as an instrument of short-term tax optimisation – particularly in models based on the quick sale of contributed assets, commercial rental or intra-group loan financing.

The decision to set up or maintain a foundation should therefore stem from ownership and succession strategy, not solely from a calculation of rates. More on advisory for owners is available in the section on private and family businesses.

Auditing a family foundation before 2027

Zwyrtek Group supports founders, beneficiaries and family businesses in analysing the impact of the planned changes on existing and planned family foundations. The scope of support may include, in particular:

• a legal and tax audit of the family foundation;
• an analysis of assets, loans, benefits and transactions with related parties;
• an assessment of planned contributions and sales of shares and property;
• an analysis of foreign structures for CFC and exit-tax exposure;
• developing asset reorganisation scenarios;
• preparing a timeline of actions before the end of 2026;
• support in setting up a family foundation and designing family and succession governance.

Do you already have a family foundation, or are you considering setting one up? Contact us to check how the planned changes could affect your asset structure and succession plan. You can also directly book a consultation on the family foundation. We also provide ongoing legal services for family foundations and companies.

This article presents the planned changes as at the legislative status of 23 August 2026. The legislative process has not been concluded, so the final scope of the regulations and their effective date may change. This material is for general information only and does not constitute legal or tax advice for any specific case.