Written by Marta Oleśkowska, Barrister (adwokat), Head of Inheritance Practice · First published: 4 December 2025
Reviewed by Marcin Kręglewski, Barrister (adwokat), Partner – Head of Tax · Last updated: 11 November 2026
Foreign trusts in Polish inheritance law – recognition, effects and beneficiary status
With the growing number of international inheritance cases, the question of how to treat foreign trusts – especially those established by will – in the Polish legal system is becoming increasingly common.
Trusts, as an institution characteristic of common law systems (e.g. the UK, USA, Canada or Australia), have no equivalent in Polish civil law.
Despite this, Polish courts and tax authorities are increasingly confronted with the effects of trusts on succession and on the taxation of what the beneficiaries receive. Since 2023 the Polish tax authorities have also settled on a clear line on trust distributions: they are taxed as income, not as an inheritance or a gift. The sections below explain how a foreign trust is treated in Poland in 2026 – in succession law, in tax law and in the beneficial-ownership register.
What is a trust?
A trust is a legal structure in which a founder (settlor) transfers property to a trustee to manage it for the benefit of designated beneficiaries.
The trustee formally becomes the owner of the transferred property, but his duty is to act in accordance with the interests of the beneficiaries. This kind of separation of ownership title (into formal and economic) is typical of common law jurisdictions, but alien to the Polish legal system, where ownership is treated as a unified and indivisible category.
Trust and Polish law
Poland is not a party to the Hague Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition (the convention binds 14 states, among them the United Kingdom, Canada, Australia, Italy, Switzerland and Liechtenstein; the United States has signed but not ratified it). Polish law contains no trust and no procedure for “recognising” one. A foreign trust is therefore not automatically recognised: its effects are assessed through the institutions Polish law does know – the appointment of an heir, an ordinary or specific legacy, a testamentary instruction, a fiduciary transfer (powiernictwo) or a donation.
The EU Succession Regulation (No 650/2012), which Poland applies to deaths on or after 17 August 2015, excludes “the creation, administration and dissolution of trusts” from its scope (Article 1(2)(j)). This is not a general exclusion of trusts: where a trust is created under a will, the law governing the succession decides how the assets pass and who the beneficiaries are (recital 13). In practice this means that a Polish court dealing with the estate first establishes the applicable succession law – as a rule the law of the deceased’s last habitual residence, unless the deceased validly chose the law of his or her nationality – and then asks what that law makes of the trust. The internal workings of the trust (the trustee’s powers and duties) remain governed by the law chosen in the trust deed.
In practice, most of the controversy concerns trusts established by will (so-called testamentary trusts), which are intended to transfer assets after the founder’s death.
Polish assets held through a trust. The Polish land and mortgage register records only the legal owner, so real estate “in a trust” is registered in the name of the trustee, with no trace of the beneficiaries. A trustee from outside the European Economic Area who is to acquire Polish real estate – including under a will – falls under the rules on the acquisition of real estate by foreigners and may need a permit of the Minister of the Interior; the exemption for heirs does not cover a trustee who is not a statutory heir. Shares in a Polish company are entered in the share register and the National Court Register in the trustee’s name (see our guide on inheriting shares in a Polish company). A foreign trustee or executor who needs to collect Polish bank accounts, shares or real estate for a foreign estate acts in Poland through a Polish succession order, a European Certificate of Succession or recognition of the foreign decision – see our guide on foreign probate documents in Poland.
The beneficiary of the trust as a legatee or as an heir
In the case of testamentary trusts, when the document clearly identifies a specific person as the beneficiary and assigns a specific asset to him, it is possible for a court to recognize such a person as a legatee. Then the provisions on testamentary legacies – an ordinary legacy (zapis zwykły) or, if the will was made before a Polish notary, a specific legacy (zapis windykacyjny) – may apply.
If the will gives the entire estate, or a fraction of it, to the trustee, Polish law sees in the trustee a testamentary heir: the trustee acquires the estate with its assets and debts, and the beneficiaries have no direct claim against the estate under Polish law – only the claims the trust deed and its governing law give them against the trustee.
Problems arise when the beneficiary is not named, when the trust does not precisely specify the subject of the transfer, or when the final decision is at the trustee’s discretion. In such cases a Polish court may be unable to treat the beneficiary as a legatee or heir, and may consider the entire property covered by the trust as part of the estate passing to the heirs under the will or, failing a valid appointment, under the statutory rules.
Tax implications
Four Polish tax and reporting regimes may apply to a foreign trust with a Polish connection: inheritance and gift tax, personal income tax on distributions, the controlled-foreign-company (CFC) rules and the Central Register of Beneficial Owners. The qualification of each distribution is analysed separately; relief from double taxation is never automatic.
Inheritance and gift tax: trust distributions fall outside the Act
The Polish Inheritance and Gift Tax Act taxes only the acquisitions listed in its Article 1 – inheritance, legacy, donation, forced share and a few others. In a consistent series of rulings the Director of the National Tax Information has held that a distribution from a foreign trust is none of these: it is made under the trust deed, not under a donation contract or a will, so it is not subject to inheritance and gift tax at all (rulings of 6 October 2023, an Australian family trust; 20 February 2024, four US trusts settled by the beneficiary’s parents; 24 January 2025, an Illinois trust paying out after the settlor’s death). The practical consequence is that the close-family exemption (SD-Z2) is not available either – there is no inheritance or gift to exempt. Older rulings sometimes treated a payment made after the settlor’s death as a legacy subject to inheritance tax; this is no longer the position of the tax authorities, and a beneficiary who wants certainty should apply for an individual ruling.
Personal income tax: distributions are taxed as “other income”
What a Polish tax resident receives from a foreign trust is instead treated as income from other sources (Article 10(1)(9) and Article 20(1) of the PIT Act), taxed at the progressive rates of 12% and 32%. The Regional Administrative Court in Kraków confirmed this on 30 May 2025 (case I SA/Kr 200/25, not yet final): a trust is an institution unknown to Polish law, and the income-tax exemption for benefits from a Polish family foundation (Article 21(1)(157) of the PIT Act) cannot be applied to a trust by analogy, even if the beneficiaries are the settlor’s children. Tax paid abroad on the same income may be credited in Poland under the relevant double-taxation treaty (for the United States, the treaty of 1974 and the proportional-credit method) – but only on the terms of that treaty, and a US estate or trust tax is not always the “same” tax.
Controlled foreign company (CFC) rules: the trust’s own income
The Polish CFC rules expressly cover “a foundation, trust or other entity or legal relationship of a fiduciary nature” (Article 30f(2)(1)(e) of the PIT Act), and the “right to participate in profits” includes benefits paid to the settlor or a beneficiary of a trust (Article 30f(2)(1a)). A Polish tax resident who, alone or with related persons, holds more than 50% of the rights in such a structure or controls it in fact, must pay 19% tax on the trust’s income – whether or not it is distributed – if at least 33% of that income is passive (dividends, interest, capital gains, rent, royalties) and the tax actually paid abroad is at least 25% lower than Polish corporate income tax would be. The resident must keep a register of such entities, file the annual CFC return and keep records of the trust’s income. Whether a given beneficiary “controls” a discretionary trust is a question of fact that has to be assessed for each trust. Distributions already taxed in the beneficiary’s hands reduce the CFC base.
Central Register of Beneficial Owners (CRBR)
Since 31 October 2021 a trust whose trustee lives or has its seat in Poland, or who enters into a business relationship or acquires real estate in Poland on behalf of the trust, must report its beneficial owners – settlor, trustee, protector, beneficiaries and anyone else exercising control – to the Central Register of Beneficial Owners within 7 days (the duty was introduced by the Act of 30 April 2021 amending the Anti-Money Laundering Act, Journal of Laws 2021, item 815). Failure to report, or reporting incorrect data, carries a fine of up to PLN 1,000,000. Polish banks and notaries may ask for the registration before they open an account or draw up a deed for a trustee. Cross-border arrangements involving a trust may also be reportable under the mandatory-disclosure (MDR/DAC6) rules; this is checked by the adviser who designs the structure.
If the settlor and the trustee are the same person, or the settlor keeps full control of the assets, the Polish tax authorities may also disregard the structure as artificial under the general anti-avoidance rule and tax the settlor directly.
Trusts and the forced share (zachowek)
Where Polish law governs the succession, a trust does not remove assets from the reach of the forced share. Lifetime transfers made by the deceased – including transfers into a trust for the benefit of chosen family members – are added to the estate for the calculation of the forced share like donations, and the person who received the benefit may have to pay the shortfall. Since 22 May 2023 the Civil Code also adds the founding fund of a Polish family foundation to the estate for this purpose; the rule is written for the Polish family foundation, and how a foreign trust is treated in a given case is assessed under the law governing the estate. Where a foreign law governs the succession, the position of the forced heirs is assessed under that law.
Recommendations for succession planning with trusts
Individuals planning a succession using a trust – especially if they have a connection to Poland (citizenship, residency, assets, heirs) – should exercise caution. It is recommended to:
- establish the trust in the form of a will and ensure that it meets the formal requirements recognized by Polish law,
- identify the beneficiaries by name and precisely define the transferred property,
- check, before the first distribution, how it will be taxed for a beneficiary living in Poland (income tax, not inheritance tax) and whether the trust triggers CFC or CRBR obligations,
- consult a tax lawyer and an inheritance lawyer in Poland to understand the potential legal and fiscal implications for the beneficiaries,
- consider drafting a parallel will that complies with Polish law, as a supplement to foreign structures; for assets in Poland, a Polish family foundation may be the closer equivalent of a trust.
Can a foreigner make a will in Poland in addition to a trust?
Yes, a foreign citizen can, in addition to a trust, draw up a will in Poland, provided that he meets the general requirements under Polish law. This means that he must have full legal capacity, the will must be drawn up in one of the permitted forms (e.g., handwritten, notarized) – see our guide on wills in Poland.
There is no requirement that the foreigner have a permanent residence in Poland – it is sufficient that the will be drawn up on its territory in accordance with Polish regulations. Under EU Regulation No. 650/2012, which applies in all EU Member States except Denmark and Ireland, a person making a will may choose the succession law of his or her country of nationality instead of the law of the country of habitual residence.
Importantly, a will drawn up in Poland may be considered valid in another country, but this depends on several factors, such as international regulations, the inheritance law of the country in question and the form of the will.
Which document is decisive – a will or a trust?
In the Polish legal system, the basic form of disposing of property in the event of death is the will. If the will was drawn up in accordance with the requirements of the law (including, for example, the applicable law chosen by the testator), its provisions will be crucial in assessing who and what inherits.
A foreign trust – especially if it was established in a will – can be treated as a means of executing the testator’s will, and its effectiveness will be evaluated in the context of the totality of the testator’s dispositions and their compliance with the Polish legal order.
In practice, this means that if there is both a will and a trust, the court will analyze:
- whether the will was drafted in accordance with the law and contains a valid choice of applicable law (e.g. the law of the testator’s nationality),
- whether the content of the trust is consistent with the provisions of the will and whether it can be translated into institutions known in Polish law (e.g. a legacy or a testamentary instruction),
- whether any of the dispositions violate mandatory provisions,
- what the actual will of the testator was and to what extent it can be respected.
What if there are contradictions?
If the provisions of the trust and the will are inconsistent or contradictory, the court does not apply the automatic principle of “priority,” but examines which disposition was last, valid and lawful.
Usually, however, the will – as a classic form of death disposition – is the starting point for interpretation, and the provisions of the trust can be recognized only to the extent that they are consistent with the will and the provisions of Polish law.
In particular, a trust may be disregarded or limited in its effect if:
- it hinders the identification of assets,
- or leads to solutions contrary to the principles of Polish public policy.
Summary
Although a trust does not function as a legal institution in Polish civil law, it can have legal effects in Poland if it is properly planned and embedded within a will. Otherwise, there is a risk that it will be disregarded in inheritance proceedings, and the property will go to the heirs under the will or, failing that, under the statutory rules. For a beneficiary living in Poland, distributions are taxed as income rather than as an inheritance, and the trust itself may fall under the CFC rules and the beneficial-ownership register. To avoid disputes and additional taxation, it is crucial to integrate common law solutions with the realities of the Polish legal system.
FAQ – Foreign Trusts and Polish Inheritance Law
Are trusts recognised under Polish law?
Not as such. Polish civil law has no trust, and Poland is not a party to the Hague Trusts Convention of 1985, so there is no procedure for recognising a foreign trust as a trust. A foreign trust is not illegal in Poland – its effects are simply assessed through the institutions Polish law knows: the appointment of an heir, a legacy, a fiduciary transfer or a donation. Polish registers (land and mortgage register, National Court Register) record the trustee as the owner, not the trust or its beneficiaries.
Does the EU Succession Regulation apply to a trust?
Partly. Regulation 650/2012 excludes the creation, administration and dissolution of trusts from its scope, but where a trust is set up by a will, the law applicable to the succession under the Regulation – as a rule the law of the deceased’s last habitual residence, or the chosen law of nationality – decides how the assets pass and who the beneficiaries are. The Regulation applies to deaths on or after 17 August 2015 in all EU Member States except Denmark and Ireland.
I live in Poland and received money from my late father’s US trust – do I pay Polish inheritance tax?
No. Since 2023 the Director of the National Tax Information has consistently held that a payment from a foreign trust is made under the trust deed and is neither an inheritance, a legacy nor a donation within the closed list in Article 1 of the Inheritance and Gift Tax Act. There is therefore no inheritance tax – and no SD-Z2 close-family exemption to claim. The payment is instead income for personal income tax purposes (next question). For certainty on a specific trust, an individual tax ruling can be obtained.
Do I pay income tax on distributions from a foreign trust?
Yes, if you are a Polish tax resident. Distributions are income from other sources, taxed on the progressive scale (12% up to PLN 120,000 of annual income, 32% above) and reported in the annual PIT return. Tax paid abroad on the same income can be credited only on the terms of the applicable double-taxation treaty, so relief is not automatic. If you control the trust, the CFC rules may apply to the trust’s income as well.
Can a foreign trust use the tax exemption for Polish family foundations?
No. Benefits from a Polish family foundation to the founder’s closest family are exempt from personal income tax, but the Regional Administrative Court in Kraków held on 30 May 2025 (I SA/Kr 200/25, not final) that this exemption cannot be extended to a foreign trust, even one that functions like a family foundation and benefits the settlor’s children. A trust is not a family foundation in the meaning of the Polish Act of 26 January 2023.
Is a foreign trust a controlled foreign company for a Polish resident?
It can be. The CFC definition in Article 30f of the PIT Act expressly includes a “foundation, trust or other entity or legal relationship of a fiduciary nature”. A Polish resident who holds more than 50% of the rights in the trust, or controls it in fact, pays 19% tax on the trust’s income if at least 33% of that income is passive and the foreign tax is at least 25% lower than Polish corporate tax. Whether a discretionary beneficiary “controls” the trust depends on the trust deed and the facts.
Does a foreign trust have to be registered in Poland?
Only in the situations listed in the Anti-Money Laundering Act: when the trustee lives or has its seat in Poland, or enters into a business relationship or acquires real estate in Poland on behalf of the trust. The trust then reports its beneficial owners – settlor, trustee, protector, beneficiaries – to the Central Register of Beneficial Owners (CRBR) within 7 days; the fine for non-compliance is up to PLN 1,000,000. A trust that merely pays money to a beneficiary in Poland does not register.
Can a trust own real estate in Poland?
The trustee can, in his own name – the land and mortgage register does not record trusts or beneficiaries. A trustee from outside the European Economic Area, whether an individual or a trust company, as a rule needs a permit of the Minister of the Interior to acquire Polish real estate, including when the real estate passes to the trustee under a will; the exemption for heirs applies only to statutory heirs. See our guide on inheriting property in Poland.
Can a trust be used to avoid the forced share (zachowek) in Poland?
Not where Polish law governs the succession. Lifetime transfers into a trust for chosen family members are added to the estate for the forced-share calculation like donations, and the recipient may have to pay the shortfall to the forced heirs; the five-year limitation period runs from the opening of the succession. Where a foreign law governs the succession, the forced heirs’ position is assessed under that law.
I am a trustee or executor abroad – how do I collect Polish assets for the estate?
A foreign grant or letters of trusteeship alone are usually not enough for a Polish bank, the land register or the National Court Register. Depending on the country, the estate needs a European Certificate of Succession, a Polish court order confirming the heirs or recognition of the foreign decision; a Polish lawyer acts under a power of attorney, so the trustee does not have to travel. Dudkowiak & Putyra acts as Polish counsel for foreign executors, trust companies and law firms – see our guide on foreign probate documents in Poland.
