CHANGES IN FAMILY FOUNDATIONS IN POLAND AND THEIR SIGNIFICANCE
Publication date: November 18, 2025
The essence of family foundations
Since the Act on Family Foundations came into force in 2023, they have become incredibly popular among Poles. The numbers alone demonstrate this: by April 2025, approximately 2,500 Family Foundations had already been registered, and as many as 4,000 applications had been submitted. Their primary purpose is to provide essential funds to beneficiaries, who may include relatives (funds allocated to beneficiaries who are individuals may include living and education costs). Furthermore, they play a crucial role in inheritance. They prevent excessive fragmentation of family assets and disputes that may arise as a result of inheritance. The founder can contribute assets (e.g., company shares) to the foundation, ensuring that designated assets will not be inherited under the Civil Code (they will not be included in the deceased’s estate), meaning only those designated by the founder as beneficiaries will have access to them. A family foundation, therefore, allows for a more effective reduction in potential disputes by clearly advancing the testator’s interests while maintaining its family character and professional management. However, recently, these legal entities have also been observed being used for other purposes, including tax optimization. Therefore, on August 8, 2025, the Polish Ministry of Finance announced legislative changes that could significantly impact the situation of family foundations.
