Family foundations after three years: Poland signals closer scrutiny and possible tax reform

The Polish family foundation is here to stay. But the government’s September 2026 paper, “Przegląd ustawy o fundacji rodzinnej” (Review of the Family Foundation Act), makes the direction of travel clear: policy is moving towards a sharper distinction between genuine succession structures and arrangements driven mainly by tax.

One point matters above all. The review is an assessment of the first three years and a set of recommendations. It is not legislation in force, and nothing in it changes the rules that existing foundations operate under today.

What does the government review show?

Demand has been strong. The volume of applications put the court-run register under real pressure and lengthened waiting times for registration.

The government therefore plans to move the family foundation register into the National Court Register (KRS) and digitise it fully. For founders, that should mean a more predictable process, alongside greater transparency of foundation data.

The review also sets out tax data:

• 3,205 MDR reports (mandatory disclosure of tax arrangements) relating to family foundations,
• the main benefit test was flagged in 82% of reported arrangements,
• 77 cases of reasonable suspicion of tax avoidance.

These figures need context. An MDR filing is a disclosure obligation, not an admission of wrongdoing, and many arrangements are reported by advisers and banks on a precautionary basis. Meeting the main benefit test does not in itself mean abuse either.

What the numbers do show is the level of attention. Family foundations are now among the most visible wealth structures in Poland from the tax authorities’ point of view.

Which structures are most exposed?

The review does not question the vehicle itself. It identifies situations in which a genuine succession purpose may be harder to demonstrate. Five areas stand out.

Short-term transfers and disposals of assets

Contributing shares, stock or real estate to a foundation and selling them shortly afterwards invites the question of whether the foundation was meant to steward family wealth or simply to host a transaction. Timing, documented decision-making and what happens to the proceeds all matter.

Distributions or liquidation after a deal

Where distributions to beneficiaries, or winding up the foundation, are planned from the outset to follow a sale, it is difficult to describe the structure as long-term asset management. Such scenarios are likely to be examined closely.

Rental and operational activity

The Act permits certain activities, including letting property. Issues arise where letting is in substance an operating business, for example with extensive ancillary services. The line can be fine and depends on the actual model.

Related-party loans and transactions

Loans granted by a foundation and dealings with its subsidiaries, the founder or beneficiaries are named as areas for tightening. Arm’s-length terms, security and actual repayment are key.

Founders who keep full economic control

Foundations in which the founder is the sole or main beneficiary while effectively retaining all control over the assets attract particular attention. That said, a founder being among the beneficiaries does not by itself indicate abuse. The Act expressly allows it, and in many families it is a natural arrangement during the transition between generations.

What might change?

The proposals vary in maturity, and it helps to separate them.

More likely directions

• a digitised foundation register within the KRS,
• greater transparency towards the National Revenue Administration (KAS) and wider reporting duties,
• tighter rules on loans and rental income,
• clarified treatment of tax-transparent entities,
• changes to the CFC (controlled foreign company) and exit tax rules.

Subjects for wider debate

• a different tax model when assets are contributed to a foundation,
• current taxation of part of a foundation’s income rather than only on distribution,
• a redesigned approach to taxing benefits paid to beneficiaries.

None of these is law. They have no defined shape or timetable, and each would require a bill, consultation and the full legislative process. We cover the separately proposed changes from 2027 in another article.

A practical checklist for existing and planned foundations

There is no need for hasty decisions. There is good reason to check that your structure and day-to-day practice would stand up to questions:

• confirm that the statute and actual operation of the foundation serve a succession purpose,
• document the business and family rationale for significant transactions,
• review planned asset disposals, loans, benefits and related-party transactions,
• check family governance, management rules and conflict-of-interest arrangements,
• keep accounting, the asset inventory, documentation and tax filings in order,
• monitor the legislative process and respond to actual bills rather than announcements.

Often this means filling documentation gaps and tidying up ongoing reporting, supported by reliable accounting for the foundation and periodic tax advisory reviews.

Still a strong succession vehicle

A Polish family foundation can remain an excellent tool for succession, asset protection and long-term investment. Its durability depends on the structure, the statute and everyday practice reflecting a genuine succession purpose.

Whether you already operate a Polish family foundation or are considering one, this is a good moment to review its ownership, succession, tax and governance model.

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Source: “Przegląd ustawy o fundacji rodzinnej”, Government of Poland, September 2026.

This article is general information only and reflects the position as at October 2026. It is not legal or tax advice for any particular situation.