For business · Law City Katowice

Family foundation — legal and tax advice

Katowice and all of Silesia · also available online

A family foundation lets you organize succession, separate ownership of assets from their management, and keep the business intact. We handle it from drafting the charter and registration through to ongoing support — in Katowice and across Silesia.

What is a family foundation?

A family foundation is a separate legal entity to which the founder contributes assets (for example, shares in a company, real estate, or cash), and an appointed management board runs it for the benefit of designated beneficiaries — usually family members — in line with the charter. The institution was introduced by the Act of 26 January 2023 on the family foundation, which came into force on 22 May 2023.

Its core purpose is succession: keeping the business and assets intact and passing benefits to future generations in an orderly way, instead of splitting the enterprise among heirs. Assets contributed to the foundation cease to be the founder's private property, which clarifies inheritance and reduces the risk of family disputes.

A family foundation also has a tax dimension. As a rule, it is exempt from CIT (corporate income tax) while accumulating and growing assets within the scope allowed by the act, and tax typically only arises when benefits are paid out to beneficiaries. Whether this is the right solution depends on the structure of your assets and your family's goals — so we assess every case individually.

Who this is for

Owners of family businesses planning succession and handing the business to the next generation
Entrepreneurs with assets spread across shares, real estate and financial holdings who want to consolidate and protect them
Families who want to keep the business intact and avoid inheritance disputes
People who want to separate ownership of assets from their day-to-day management
Founders looking for clear, lasting rules for payouts to beneficiaries

Scope of services

Drafting the charter and registering the family foundation
Contributing assets to the foundation and setting the rules for benefits to beneficiaries
A succession plan and rules for how the foundation's bodies operate (management board, beneficiaries' assembly, supervisory board)
Applications for protective tax rulings and interpretations
Ongoing legal and tax advice for the foundation and its beneficiaries

Benefits and risks

Benefits

Business succession without splitting it among heirs
Consolidation and protection of family assets in a single entity
Exemption from CIT while accumulating and growing assets within the scope allowed by the act
Exemption from PIT (personal income tax) on benefits paid to close family (the so-called "zero" group relative to the founder)
Clear, lasting rules for payouts to beneficiaries
Separation of asset ownership from day-to-day management

Things to keep in mind

The minimum founding fund is PLN 100,000, and contributed assets cease to be the founder's private property
Paying out benefits to beneficiaries triggers 15% CIT at the foundation level
Business activity outside the scope allowed by the act is taxed at a punitive 25% CIT rate
So-called hidden profits (for example, free use of the foundation's assets) are taxed on top of that
Beneficiaries outside the immediate family will pay PIT on the benefits they receive

Frequently asked questions

How much does it cost to set up a family foundation?

The act requires a founding fund worth at least PLN 100,000, contributed as assets (for example, shares, real estate, or cash). On top of that come notary fees, court fees and our fee, which depends on how complex the structure is. We give you a concrete quote after the first conversation.

Does a family foundation pay CIT?

As a rule, a family foundation is exempt from CIT for as long as it accumulates and grows assets within the activity allowed by the act. Tax (generally 15% CIT) typically only arises when benefits are paid out to beneficiaries. The act does provide exceptions to the exemption, though (including so-called hidden profits or activity beyond the permitted scope), and on the beneficiary's side PIT applies, with the rate depending on their degree of kinship with the founder. We analyze the tax consequences for your specific situation.

How long does it take to set up a family foundation?

From the moment the founding deed is signed before a notary, the foundation already operates as a "family foundation in organization." Entry in the register of family foundations usually takes anywhere from a few weeks to a few months, depending on how complete the application is and the registry court's workload. We give you a timeline after reviewing your case.

Who can be a beneficiary of a family foundation?

A beneficiary can be a natural person (most often a family member) or a public benefit organization. The charter sets out who the beneficiaries are and the rules governing their entitlements. The beneficiary's degree of kinship with the founder determines the PIT consequences when benefits are paid out.

Can a family foundation run a business?

Yes, but only within the scope allowed by the act — including leasing and rental, trading in shares and securities, and certain investments. Activity beyond that list is taxed at the punitive 25% CIT rate. We check the scope of planned activity before assets are contributed.

Can I contribute shares in my company to the foundation?

Yes — shares are a typical asset held by a family foundation. That way the business stays intact, with the foundation as its owner. We analyze the tax and corporate consequences of such a contribution beforehand.

Does a family foundation protect assets from creditors?

The foundation organizes ownership of assets, but it isn't a way to escape existing debts. The act makes the foundation liable for certain obligations of the founder, including maintenance obligations and debts that arose before the foundation was created. We assess the real scope of protection on a case-by-case basis.

How is a family foundation different from a holding company?

A holding company is still an ownership structure held by shareholders, subject to inheritance and division. A family foundation takes over ownership of the assets and operates under its charter regardless of generational change. The two forms often complement each other — we tailor the solution to your family's goals.