A family foundation is a relatively new legal institution designed for the long-term management and protection of family assets, as well as to facilitate and streamline the intergenerational succession process.

Establishing a family foundation requires executing the foundation’s statute as a notarial deed, contributing assets with a minimum value of PLN 100,000 as the founding fund, and completing registration formalities.

A family foundation allows for consolidation of key components of family wealth in a single entity (e.g., real estate, securities, company shareholdings), effectively creating a unified holding structure. By centralising assets within a family foundation, the previously complex succession process can be significantly simplified.

For many entrepreneurs, a key advantage of a family foundation is its favourable tax regime. Generally, the foundation’s income is exempt from corporate income tax (CIT), provided it arises from business activities explicitly permitted under the Family Foundation Act. Benefits distributed to beneficiaries receive preferential personal income tax (PIT) treatment, while benefits received by the founder (who is also a beneficiary) and the founder’s immediate family members may be fully exempt from tax.

Moreover, depending on the type of assets held, a family foundation may be subject to value added tax (VAT) or real estate tax. Consequently, it is not free from potential tax uncertainties and requires ongoing tax analysis.

Paczuski Taudul provides a comprehensive range of services related to family foundations.

Our support includes:

• consulting on family foundation planning
• assisting with the establishment of a family foundation
• providing ongoing legal and tax advisory services
• conducting family foundation audits