Statistics show that a large number of foreigners move to other countries at a young or young age. The Republic of Poland is not an exception – there is a very large percentage of immigrants who came to live in the country at a young age. Such people, as a rule, are just starting their careers and learning something, so their incomes are not large and part of the money for living is sent to them by their parents.
Do you want to know whether you need to pay any taxes to the state treasury for the fact that you just received money from relatives? In this article we will analyze in detail the system of taxation of material gifts from relatives and money transfers. Enjoy reading this article!
What does the law say about gifts from relatives (Darowizna od rodziców)?
The term «Darowizna od rodziców» is literally translated as «donation from parents», but in our case we understand it to mean any kind of material assistance, money transfers, etc.
Imagine you live in Poland all alone and your parents help you financially every month so that you can support yourself. If we consider this situation from the legal point of view, then all such transfers are equivalent to income. And income, as you know, in any country is taxable. However, in Polish law everything is provided for and such taxes can be avoided. You can read more about all the rules concerning gift taxes in the article about «inheritance and gift tax».
Who are in the tax groups whose gifts from whom are not taxable?
To understand whether you need to pay gift tax, you need to understand several things: who gave you the gift; what is the amount of the gift; which tax group the sender of the gift belongs to.
Today, there are three tax groups of relatives in Poland:
Group 1. This group includes the closest relatives, including: spouses, children, grandchildren, parents, grandparents, brothers and sisters, stepfather and stepmother, daughter-in-law and son-in-law. The maximum amount of a gift received that is not taxable in this group is PLN 36,120.
Group 2. This group includes relatives who are not close: nephews and their children, uncles and aunts, cousins. The maximum amount of a gift received that is not taxable in this group is PLN 27,090.
Group 3. The third group includes all those relatives who are not included in either the first or the second group. The maximum amount of a gift received that is not taxable in this group is PLN 5,733.
The above amounts are for five-year period. It means that you can receive no more than PLN 36120 from your parents, no more than PLN 27,090 from your uncle, and no more than PLN 5,733 from persons from the third group.
Real-life examples
→ Example 1. Mother gave her son a car worth PLN 30,000 in 2024. In December 2023, the son received a laptop worth PLN 6,637 from his mother. Is the son obliged to report the donation to the office? The son is required to report the difference between the amount of the donation received and the tax-free amount on Form SD-Z2.
→ Example 2. A grandfather gave his grandson a monetary gift of PLN 1,000. Is this donation tax-free? This donation is exempt from inheritance and gift tax. However, if the grandchild receives a donation from the grandfather exceeding the total value of 36,120 PLN within 5 years, he will be obliged to report the excess to the tax office on form SD-Z2.
Tax for exceeding gift limits
What should be done if the above limits have been breached? In such cases, material gifts (money) will be taxable. For different groups and different exceeding amounts, a certain tax is stipulated.
Group 1. If the permitted limit is exceeded by no more than PLN 11,833, the taxable tax is 3%. If the permitted limit is exceeded by no more than PLN 23,665, the taxable tax is 5% and an additional PLN 355 will have to be paid. If the permitted limit is exceeded by more than PLN 23,665, the taxable amount is 7% and an additional PLN 946 will have to be paid.
Group 2. If the permitted limit is exceeded by no more than PLN 11,833, the taxable amount is 7%. If the permitted limit is exceeded by no more than PLN 23,665, the taxable tax is 9% and an additional PLN 828 will have to be paid. If the permitted limit is exceeded by more than PLN 23,665, the taxable amount is 12% and you will have to pay PLN 1,893 in addition.
Group 3. If the permitted limit is exceeded by no more than PLN 11,833, the taxable amount is 12%. If the permitted limit is exceeded by no more than PLN 23,665, the taxable amount is 16% and additionally PLN 1,420 will have to be paid. If the permitted limit is exceeded by more than PLN 23,665, the taxable amount is 20% and an additional PLN 3,313 will have to be paid.
SD Z2 declaration for gift tax exemption
To avoid taxation of gifts from relatives (under the condition that the limit is not exceeded), a SD Z2 declaration must be filed and the relevant gifts must be stated therein.
This declaration must be filed within 6 months of receiving gifts from relatives. The declaration must be filed with the tax office in your place of residence. You can view and download the required SD Z2 form at this link. IMPORTANT: it is mandatory to have a PESEL number to file the SD Z2 declaration. However, not all foreigners have such a document, so we recommend that you do not hesitate to apply for a PESEL, especially if you have only recently arrived in Poland.
