Inheritance Law for Foreign Nationals in Poland: Navigating Succession Rights and Estate Planning

When a foreign national owns assets in Poland or a Polish citizen leaves property to international heirs, understanding the complexities of Polish inheritance law becomes essential. The intersection of different legal systems, international treaties, and local regulations creates a unique legal landscape that requires careful navigation. As cross-border movements and investments increase, more individuals face the challenge of managing estate matters across national boundaries.

In my years of practice assisting international clients with their legal matters in Poland, I’ve witnessed numerous cases where proper understanding of Polish succession law could have prevented prolonged legal disputes, unnecessary taxation, and significant stress during an already difficult time. Whether you’re an expatriate living in Poland, a foreign investor with Polish assets, or someone who has inherited property from a relative in Poland, this comprehensive guide will help you understand your rights and obligations under Polish inheritance law.

What is the Legal Framework Governing Inheritance in Poland?

Poland’s inheritance system is primarily governed by the Civil Code (Kodeks Cywilny), particularly Articles 922-1087, which establish the fundamental principles of succession. The legal framework has been significantly modernized following Poland’s accession to the European Union, particularly with the implementation of EU Succession Regulation No. 650/2012 (also known as Brussels IV) in 2015.

This regulation has harmonized certain aspects of international inheritance cases, allowing individuals to choose whether the law of their nationality or their habitual residence should apply to their succession. For foreign nationals with assets in Poland, this creates important planning opportunities but also requires careful consideration of various legal implications.

Additionally, Poland’s legal system recognizes both testate succession (inheritance based on a will) and intestate succession (inheritance according to statutory provisions when there is no valid will). Understanding these two paths is crucial for effective estate planning in the Polish legal context.

How Does Polish Inheritance Law Apply to Foreign Nationals?

For foreign nationals, the application of Polish inheritance law follows specific rules that determine which country’s laws govern the succession process. Prior to August 17, 2015, Poland applied the principle of nationality, meaning that the law of the deceased person’s citizenship governed their succession regardless of where they lived or where their assets were located.

However, with the implementation of the EU Succession Regulation, individuals now have the option to choose the law of their nationality or their habitual residence to govern their entire succession. This choice must be expressly made in a will or other disposition of property upon death. If no choice is made, the law of the deceased’s habitual residence at the time of death will typically apply.

It’s worth noting that real estate (immovable property) located in Poland is subject to certain mandatory provisions of Polish law regardless of which country’s law governs the overall succession. This includes regulations concerning the transfer of ownership, registration requirements, and certain restrictions on foreign ownership.

What Are the Statutory Inheritance Rights in Poland?

When a person dies without leaving a valid will (intestate), Polish succession law provides a clear hierarchy of heirs who are entitled to inherit. Understanding this statutory order is essential for foreign nationals with connections to Poland:

1. First order: Children and spouse of the deceased. The spouse receives no less than 1/4 of the estate.
2. Second order: If there are no descendants, the spouse and parents of the deceased inherit. The spouse receives half of the estate, while parents share the remaining half.
3. Third order: If there are no descendants or parents, the spouse inherits with the siblings of the deceased or their descendants.
4. Fourth order: If none of the above relatives exist, the grandparents of the deceased and their descendants.
5. Fifth order: Children of the deceased’s spouse who are not the deceased’s children (stepchildren).
6. Last resort: If no statutory heirs exist, the estate passes to the deceased’s last municipality of residence or to the State Treasury.

These rules apply to all estates governed by Polish law, regardless of the nationality of the deceased or the heirs. However, foreign nationals should be aware that these provisions might differ significantly from inheritance laws in their home countries.

Can Foreign Nationals Make a Valid Will in Poland?

Yes, foreign nationals can create legally valid wills in Poland. Polish law recognizes several forms of wills, with the most common being the notarial will (testament notarialny), which is drafted and authenticated by a Polish notary public. This form offers the highest level of legal security and is strongly recommended for foreign nationals with significant assets in Poland.

Alternative forms include the holographic will (testament własnoręczny), which must be entirely handwritten, dated, and signed by the testator, and the allographic will (testament allograficzny), which is declared orally before specific official persons and two witnesses.

For international estate planning, it’s important to note that Poland recognizes foreign wills if they comply with:

• The law of the country where the will was made
• The law of the testator’s nationality, habitual residence, or domicile at the time of making the will or at death
• The law of the place where the real estate is located (for provisions concerning real estate)

At Kopeć Zaborowski Attorneys at Law, we specialize in assisting foreign clients with drafting legally sound wills that account for cross-border implications and ensure your assets are distributed according to your wishes. Our expertise in both Polish and international law allows us to provide comprehensive estate planning services tailored to your specific situation.

What is the Reserved Portion (zachowek) in Polish Inheritance Law?

One of the most distinctive features of Polish succession law is the concept of the reserved portion (zachowek), which significantly limits testamentary freedom. Unlike common law jurisdictions where testators generally have complete freedom to dispose of their assets, Polish law protects certain close relatives by granting them a right to claim a portion of the estate regardless of the testator’s wishes.

The reserved portion applies to the testator’s descendants, spouse, and parents who would have inherited under intestate succession but were excluded from inheritance by the will. These entitled persons can claim:

• 1/2 of what they would have received under intestate succession (for minor children, incapacitated persons, or incapacitated parents)
• 1/3 of what they would have received under intestate succession (for other entitled persons)

For foreign nationals accustomed to systems with greater testamentary freedom, this mandatory share system can be surprising. Effective estate planning in Poland requires careful consideration of these provisions to avoid unintended consequences or potential claims against the estate.

How Is the Inheritance Tax Calculated for Foreign Nationals in Poland?

Poland imposes inheritance tax (podatek od spadków) based on the relationship between the deceased and the heir, as well as the value of the inherited assets. The tax is applied to assets located in Poland regardless of the nationality or residence of the deceased or the heirs.

The tax rates are divided into three tax groups based on the relationship:

• Group I (spouse, descendants, ascendants, siblings, stepchildren, son-in-law, daughter-in-law): 3-7%
• Group II (nieces, nephews, brothers-in-law, sisters-in-law): 7-12%
• Group III (other heirs): 12-20%

Importantly, there are significant tax exemptions available, particularly for close family members. For instance, spouses, descendants, ascendants, siblings, stepchildren, and in-laws in Group I can benefit from a tax exemption if they report the acquisition to the tax office within 6 months and meet certain other requirements.

Foreign nationals should be aware that Poland has concluded double taxation treaties with several countries to prevent double taxation on inheritance. Understanding these agreements is crucial for proper international estate planning.

What Are the Procedures for Claiming Inheritance in Poland?

The process of claiming an inheritance in Poland typically begins with obtaining a certificate of inheritance (poświadczenie dziedziczenia) or a court declaration of inheritance (stwierdzenie nabycia spadku). For foreign nationals, this process may involve additional steps, especially when international elements are present.

A notarial certificate of inheritance can be obtained from a Polish notary public if all heirs agree on the distribution of the estate and are present or properly represented. This is usually the faster and less expensive option. If agreement cannot be reached or if there are complications, a court declaration of inheritance must be obtained through the district court (sąd rejonowy) with jurisdiction over the deceased’s last place of residence in Poland.

Once the inheritance rights are confirmed, heirs must file an inheritance tax declaration within one month from the date the inheritance was acquired. Payment of any applicable tax is due within 14 days from receiving the tax assessment decision.

For foreign nationals inheriting assets in Poland, working with an experienced legal professional is highly recommended to navigate these procedures efficiently and avoid potential pitfalls in the process.

How Does the EU Succession Regulation Impact Inheritance in Poland?

The EU Succession Regulation (Brussels IV), implemented in 2015, has significantly simplified cross-border inheritance cases involving Poland and other EU member states (except Denmark, Ireland, and the UK). The regulation establishes that a person’s habitual residence at the time of death determines which country’s laws apply to their entire succession, unless they explicitly chose the law of their nationality in a will or testament.

This regulation has introduced greater predictability and flexibility for foreign nationals with connections to Poland. It allows individuals to plan their succession with more certainty, knowing which law will apply to their estate. Additionally, the regulation created the European Certificate of Succession, a document that enables heirs, legatees, and executors to prove their status and exercise their rights in other EU member states without additional procedures.

However, it’s important to note that while the regulation harmonizes the rules determining which law applies, it does not harmonize the substantive inheritance laws themselves. This means that significant differences still exist between Polish inheritance law and the laws of other countries, requiring careful planning for those with cross-border assets.

What Challenges Do Foreign Nationals Face in Polish Inheritance Cases?

Despite the improvements brought by the EU Succession Regulation, foreign nationals still face several challenges when dealing with inheritance matters in Poland:

• Language barriers: All official documents and court proceedings in Poland are conducted in Polish, necessitating certified translations of foreign documents and often requiring interpreter services.
• Document authentication: Foreign documents typically need to be legalized or apostilled to be recognized by Polish authorities.
• Different legal concepts: Legal institutions that exist in common law jurisdictions, such as trusts, are not directly recognized in the Polish legal system, creating complications for estate planning across different legal traditions.
• Restrictions on foreign ownership: While Poland generally allows foreign nationals to inherit property, certain restrictions apply to agricultural land and real estate in border zones, which may require special permits.

Addressing these challenges requires specialized legal knowledge that bridges Polish and international legal systems. Professional legal assistance can significantly streamline the process and help avoid costly mistakes in cross-border inheritance cases.

How Can Foreign Nationals Effectively Plan Their Estate in Poland?

Estate planning for foreign nationals with assets in Poland should begin with a thorough assessment of their international asset structure and family situation. Based on my experience with international clients, I recommend the following strategies:

1. Choose the applicable law: Consider making an explicit choice of law in your will to ensure predictability and potentially avoid the Polish reserved portion rules if your national law provides greater testamentary freedom.
2. Create a comprehensive will: Draft a will that specifically addresses your Polish assets while ensuring it doesn’t conflict with wills covering assets in other jurisdictions.
3. Consider lifetime gifts: In some cases, transferring assets during your lifetime through donations may offer tax advantages and simplify the eventual succession process.
4. Establish clear documentation: Maintain detailed records of all your assets in Poland, including property deeds, bank account information, and investment documentation, to facilitate the inheritance process for your heirs.
5. Review regularly: Periodically review and update your estate plan to reflect changes in your personal circumstances, asset structure, and relevant laws.

At Kopeć Zaborowski Attorneys at Law, we provide comprehensive estate planning services tailored to the unique needs of international clients. Our team of experienced lawyers can help you navigate the complexities of Polish inheritance law while ensuring your estate plan aligns with your overall international asset strategy.

What Recent Changes in Polish Inheritance Law Should Foreign Nationals Be Aware Of?

Polish inheritance law has seen several important developments in recent years that foreign nationals should be aware of when planning their estates or handling inheritance matters:

The introduction of the Inheritance Register (Rejestr Spadkowy) in 2018 has improved the process of verifying inheritance rights by creating a centralized electronic database of inheritance certificates and court declarations. This system has reduced the risk of conflicting inheritance documents and streamlined the verification process for heirs, particularly beneficial for foreign nationals who may not be physically present in Poland.

Additionally, changes to inheritance tax provisions have expanded exemptions for certain family members and introduced more favorable valuation methods for inherited businesses, which can be particularly relevant for foreign entrepreneurs with business interests in Poland. Staying informed about these evolving regulations is essential for effective estate planning and succession management in the Polish legal context.

When Should Foreign Nationals Seek Professional Legal Assistance?

While this guide provides a foundation for understanding Polish inheritance law, the complexities of cross-border succession cases often necessitate professional legal assistance. Based on my practice experience, I strongly recommend seeking qualified legal counsel in the following situations:

• When drafting a will that includes assets in Poland
• When inheriting property or other assets located in Poland
• When dealing with conflicting inheritance claims involving Polish and foreign heirs
• When planning complex estates with international elements
• When tax optimization is important across multiple jurisdictions
• When time is of the essence in securing inheritance rights

Professional legal assistance not only helps navigate the technical aspects of Polish succession law but also provides invaluable guidance on the practical and strategic considerations of cross-border inheritance matters. At Kopeć Zaborowski Attorneys at Law, our team specializes in assisting foreign nationals with all aspects of inheritance law in Poland, offering personalized solutions that address the unique challenges of international estate planning and succession.

Bibliography:

• Polish Civil Code (Kodeks Cywilny) of 23 April 1964, as amended
• Regulation (EU) No 650/2012 of the European Parliament and of the Council of 4 July 2012 on jurisdiction, applicable law, recognition and enforcement of decisions and acceptance and enforcement of authentic instruments in matters of succession
• Polish Inheritance and Gift Tax Act (Ustawa o podatku od spadków i darowizn) of 28 July 1983, as amended
• Pazdan, M. (2018). “Prawo prywatne międzynarodowe” (International Private Law). Warsaw: Wolters Kluwer
• Załucki, M. (2020). “Uniform European Inheritance Law: Myth, Dream or Reality of the Future”. Springer International Publishing