The Polish family foundation was introduced into the legal system in 2023 as a tool for long-term wealth management and intergenerational succession. It is a separate legal person, possesses its own assets, its own governing bodies and is an independent CIT taxpayer. It is neither an operating company nor a classic trust within the meaning of Anglo-Saxon law. This structural separateness constitutes its greatest advantage in succession planning, but in international structures it also gives rise to a number of significant tax questions.
In a purely domestic model, the foundation functions relatively transparently: it receives assets from the founder, manages them in accordance with the adopted strategy and distributes benefits to beneficiaries. The situation becomes more complex, however, when the founder or beneficiaries change their tax residence and the family operates in several jurisdictions simultaneously. In such circumstances, the foundation ceases to be merely a domestic succession tool and becomes part of an international tax architecture.
As a rule, a change of residence of a beneficiary does not affect the status of the foundation itself in Poland. The foundation remains a Polish tax resident and applies domestic taxation rules resulting from the Family Foundation Act and the CIT Act. There is no automatic “transfer” of the foundation abroad nor a change of its residence. What changes, however, is the perspective on the taxation of distributions and the way in which the structure will be assessed in the beneficiary’s new country of residence.
In the case of distributions to a non-resident, the analysis must take into account at least two legal systems. Poland classifies the distributions in accordance with its own regulations, while the beneficiary’s country of residence may perceive the foundation in a completely different manner. Depending on the jurisdiction, a Polish family foundation may be regarded as a classic legal person, a trust-like structure or, in extreme cases, as a partially transparent entity. Such differences in qualification may lead to interpretative conflicts and the risk of double taxation, particularly if both states classify the nature of the distribution differently.
In international structures, the question of the residence of the foundation itself also arises. In the domestic model, the foundation has its seat in Poland and is perceived as a Polish resident. However, where members of its governing bodies reside abroad and key investment decisions are in fact made outside Poland, another state may attempt to recognise it as its tax resident based on the criterion of the place of effective management. In practice, this may lead to a conflict of residence and the need to apply tie-breaker rules under double taxation treaties. Therefore, in mobile families, not only the formal seat of the foundation is of key importance, but also its actual governance – the place where decisions are made, the manner in which resolutions are documented and the real decision-making process.
In the background of international structures, the issue of the “beneficial owner” and anti-abuse tests also arises. Tax authorities may examine whether the foundation performs real investment and succession functions or merely constitutes a formal intermediary entity. The risk increases where there is no coherent asset strategy, no documented succession rationale or no genuine management of assets. In cross-border structures, therefore, the substance of the foundation’s activity – its functions, decision-making processes and the actual use of assets – becomes particularly important.
Of significant practical importance is the judgment of the Supreme Administrative Court of 18 February 2026 (II FSK 1010/25) concerning the sale of real estate after many years of lease. The Court confirmed that the disposal of real estate by a family foundation after a long period of genuine leasing falls within the permitted scope of activity, provided that the property was not acquired solely for the purpose of resale. The mere awareness that a sale may take place in the future does not determine the speculative nature of the investment. This ruling strengthens the argument that the foundation may perform a genuine investment function and is not an “empty” structure. In the international context, this is relevant for assessing the foundation’s substance and functions, and thus for limiting anti-abuse risks.
Another important interpretative development concerns the relocation of a founder to Georgia. In this ruling, the authority analysed the conflict of dual residence of an individual and the consequences of contributing shares to a foundation prior to a change of residence. The interpretation indicates that, in certain circumstances, contributing assets to a Polish family foundation prior to emigration does not have to trigger exit tax, provided that Poland does not lose its taxing rights. At the same time, the authority concluded that, in the described model, the founder or beneficiary is not required to recognise CFC income in Poland in connection with foreign companies whose shares were contributed to the foundation (0114-KDIP2-2.4010.142.2025.3.ASK).
This does not mean, however, that the CFC issue is resolved upon relocation. In practice, it is always necessary to analyse whether the new country of residence of the founder or beneficiary has its own CFC regimes, transparency rules or “look-through” mechanisms that could result in attributing the income of the foundation or its subsidiaries to the individual.
The conclusions arising from the most recent rulings are clear: a family foundation may effectively operate within international structures, but it requires conscious structuring and proper documentation of its role. The relocation of a founder or beneficiaries should be planned in advance, taking into account the classification of the foundation in the target jurisdiction, the taxation of distributions, potential residence conflicts and CFC regimes.
It should be emphasised that the family foundation is no longer merely a domestic succession tool. In the context of global mobility, it becomes part of a cross-border wealth structure whose security depends on the proper analysis of residence, income qualification and actual management. We would be pleased to support you in this matter.