PIT ON GIFTS FOR FOREIGNERS WITHOUT A PERMANENT RESIDENCE CARD: a new approach by the Polish tax authorities
1. Why is this a problem?
In 2025, several new individual tax interpretations were introduced (links below the article) that radically change the approach to gift tax in cases where the recipient of the gift is a foreigner without a ‘karta stałego pobytu’ or EU long-term resident card.
The problem lies in the interpretation of Article 3 of the Polish Law on Gifts and Inheritance (Ustawa z dnia 28 lipca 1983 r. o podatku od spadków i darowizn), which uses the term ‘place of permanent residence’ (miejsce stałego pobytu) in relation to foreigners. The Polish tax authorities interpret this concept exclusively as the foreigner having a permanent residence card/long-term EU resident card. However, many lawyers disagree with this and are challenging such decisions by the tax authorities in court.
2. Why has the situation worsened now?
Previously, foreigners who received cash gifts from relatives in Poland and applied for an individual tax interpretation received the standard response that only if they had temporary residence cards in Poland would such an action not fall under Polish law and, accordingly, would not be subject to gift tax. The interpretations that have appeared over the past year have gone a step further, coming to the following conclusion: if the receipt of money by foreigners in Poland is not a gift according to the law, then it is ‘income from other sources’ subject to general taxation rules (PIT). This approach fundamentally changes the situation and obliges foreigners with temporary residence permits to include gifts in their annual income tax return and pay tax according to a progressive scale (12% for income not exceeding PLN 120,000 per year and 32% for anything above that amount). Understandably, this has caused a negative reaction and concern among foreigners.
3. What happens in practice
Like many other lawyers and tax advisors, we disagree with this interpretation of the concept of ‘miejsce stałego pobytu’ (place of permanent residence), because residence documents do not necessarily reflect the actual status and length of stay of a foreigner in Poland. It is possible to envisage a situation in which a person has been living in the country for many years, working here and paying taxes, but for some reason has not received a residence permit, remaining instead with a temporary residence card (karta czasowego pobytu). There can be many options, and each situation should be considered individually. Our clients have already sent us letters from the tax office demanding that we redo the gift declaration in their PIT, citing the lack of a permanent residence status card. The good news is that, thanks to extensive and well-chosen arguments, we were able to convince the tax authorities that, despite not having the ‘right card’, the foreigner was a permanent resident of Poland and, therefore, had the right to file a gift tax return and receive a tax exemption as a close relative of the donor. However, the situation is quite new and dynamic, and we cannot rule out the possibility that in some cases it will be necessary to go to court.
4. Who will be affected by this issue?
If you are a foreigner residing in Poland and have received money from relatives as a gift (e.g. to purchase real estate), but at the time of the gift you did not have a permanent residence card or a long-term EU residence card, then according to the current interpretation of the law, such a gift is not covered by the law and cannot be exempt from tax. Moreover, the amount of the gift must be included in your annual PIT return and tax must be paid at a rate of 12/32%.
5. What to do? Practical advice
If you are only planning to sign a gift agreement with relatives, it is worth considering other forms of formalising the receipt of these funds (for details, sign up for a personal consultation). If the gift has already been given and has been declared on the SDZ2 form, no further action is required: there is a high probability that the tax office will not send any requests at all. But if a letter does arrive, please contact us to prepare a reasoned response. If you decide to indicate the amount of the gift in your PIT return, we also advise you to first consult with a tax advisor regarding the possibility of applying a reduced rate or complete tax exemption.
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Gift tax in Poland