Selling an Inherited Apartment in Poland While Living Abroad: Power of Attorney, Taxes in Poland and the USA (2026)

You live in the USA, UK, Germany, or Canada and have inherited an apartment in Poland that you want to sell? Good news: the entire process–from confirming the inheritance, through taxes, to the sales deed–can be conducted without moving to Poland, and often even without a single trip, thanks to a power of attorney. The second piece of good news: with an inheritance from parents who bought the apartment years ago, there is usually no Polish sales tax at all, and the American "stepped-up basis" system can also eliminate tax in the USA. You just need to do things in the right order and not miss a few deadlines and American informational forms, for which the penalties are disproportionately high. This guide walks you through the entire process step by step.

Last verification: July 20, 2026. Informational material–this is not legal or tax advice (Polish or American). Regulations and interpretations may change; consult your situation with a notary, Polish tax advisor, and accountant in your country of residence.

In Brief

Step by Step: Selling from Abroad

1. Confirm the Acquisition of Inheritance

   You can conduct the court confirmation of the inheritance through a power of attorney–you do not need to fly in. A faster notarial route (deed of confirmation of inheritance) requires the personal presence of all heirs–power of attorney is not accepted because the protocol contains statements made under criminal liability. However, for those abroad, the law provides for a successive procedure (Article 95ca of the Notarial Law): one of the heirs drafts a protocol project with a notary, and the others confirm it before another notary–without joint attendance. The declaration of acceptance or rejection of the inheritance can be signed before a Polish consul (who will certify the signature; the document must reach the court in Poland within 6 months).

2. Submit SD-Z2 within 6 Months

   You can submit the family exemption online through the e-Tax Office or have it sent by a power of attorney. Living abroad, it is easy to miss the deadline–so mark it in your calendar immediately after the decision becomes final. Extensions: 6 months from learning about the inheritance (you need to substantiate this) and–starting January 7, 2026–a request for reinstatement of the deadline in case of no fault (Article 4c of the SD Act).

3. Register in the Land and Mortgage Register

   The KW-WPIS application (fee of 150 PLN for inheritance) can be submitted by a power of attorney. Without registration, you cannot sell. All domestic inheritance formalities are described in detail in our guide: You Inherited an Apartment in Poland?

4. Prepare Power of Attorney for Sale

   The most important document of the entire operation–details in the next section. The power of attorney can be a trusted family member or a Polish lawyer.

5. Sale at the Notary

   The power of attorney signs the deed on your behalf. The closest family members exempted by SD-Z2 do not need a certificate from the tax office (change from July 13, 2025, Article 19(7) of the SD Act)–other heirs must present it. The price is transferred to the account you specify–it can be foreign; for safety, a notarial deposit can be used.

6. Settle Taxes–in Poland and in the Country of Residence

   If 5 years have passed since the decedent acquired the property–you do nothing in Poland. If not–PIT-39 by April 30 of the following year (for non-residents, the designated tax office in the province where the apartment is located is responsible). In the USA: report the inheritance (3520), any profit over the stepped-up basis, and FBAR.

Power of Attorney–The Heart of the Operation

Selling property in Poland requires a notarial deed, and the power of attorney for it also requires the form of a notarial deed (Article 99 § 1 in conjunction with Article 158 of the Civil Code). You have three options:

1. During a Visit to Poland–at the Notary

   The simplest option if you are planning a trip anyway (e.g., for a funeral): 30 minutes at the notary and the power of attorney is ready, without apostille and translations.

2. At a Local Notary Abroad + Apostille + Translation

   The prevailing practice of Polish notaries accepts a power of attorney prepared before a local notary (e.g., an American notary public)–private international law allows the power of attorney to retain the form of the state in which it was granted (Article 25(1) of the Private International Law Act). You must attach an apostille (issued by the Secretary of State of your state in the USA; Canada joined the apostille convention on January 11, 2024–before that, consular legalization was required) and a sworn translation into Polish done by a translator from the Ministry of Justice's list. Note: some notaries, however, require the power of attorney to be in the form of a notarial deed–always confirm the requirements with the notary who will conduct the sale before signing anything.

3. Consulate? Here’s a Caution–Usually Not Suitable for Sales Power of Attorney

   Contrary to popular belief, the consul will not certify the signature on a power of attorney for the sale of real estate–gov.pl states directly that for actions requiring the form of a notarial deed, such certification "is impossible." A consul can only prepare a notarial deed in exceptional cases, with written authorization from the Minister of Justice (Article 28(3) of the Consular Law)–this is rare, not a routine service. The consulate is useful for: certifying the signature on the declaration of acceptance/rejection of the inheritance (47 USD in the USA) and confirming the trusted profile.

Polish Tax: Most Often Zero

For inheritances, the 5-year period under the PIT Act counts from the end of the year in which the apartment was acquired or built by the decedent (Article 10(5)). Parents bought the apartment in 2005, passed away in 2025? You sell in 2026 without tax and without any declaration.

If the decedent acquired the apartment recently (less than 5 years counting from the end of the year of acquisition), the sale is settled in PIT-39 (19% on income)–but the income is reduced by the acquisition costs incurred by the decedent and paid inheritance debts and legacies (Article 22(6d)), and the remainder may be reduced by the housing relief. Full rules: Selling an Apartment Before the 5-Year Period.

Residence does not change the rules: a non-resident pays Polish PIT on property located in Poland, including from its sale (limited tax obligation, Article 3(2b)(4) of the PIT Act), and the PL–USA tax agreement from 1974 grants Poland the right to tax such income (Article 14(1)(a) in conjunction with Article 7–profits from the sale of property taxed in the state where it is located). The PIT-39 of a non-resident goes to the designated tax office in the province where the apartment is located.

American Side: Stepped-Up Basis and Forms You Need to Know

• Form 3520: an inheritance from a non-resident alien (e.g., from a parent in Poland) worth over 100,000 USD in a year must be reported to the IRS. This is purely an informational form–there is no tax–but the penalty for not reporting can reach 5% of the value per month (up to 25%).
• FBAR (FinCEN 114): if the sale proceeds go to your Polish account and the total value of foreign accounts exceeds 10,000 USD at any time during the year–you must file FBAR. Higher thresholds trigger FATCA (Form 8938).
• Sale with Profit Over Basis: the difference is reported as long-term capital gain (inherited property is automatically counted as held for over a year–IRS Pub 544), with a credit for the Polish tax paid (Form 1116)–there is no double taxation. Note currency rates: the IRS calculates in dollars, so even a sale "at the value as of the date of death" may show a small gain or loss from the USD/PLN movement.
• States with Inheritance Tax: in 2026, five states have their own inheritance tax–Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania (Iowa abolished it from 2025). Importantly: these taxes usually apply to decedents who are residents of that state or property located there–a Polish apartment from a Polish decedent is most often outside their scope. Check your state's regulations.

Do you live in the UK, Germany, or Canada? The Polish mechanics are identical; local rules apply in the country of residence (e.g., British CGT with a basis as of the date of death, German Erbschaftsteuer rules with the PL–DE inheritance agreement from 1923/1975?–consult locally). The universal rule: property in Poland is always settled in Poland first.

Money: How to Safely Receive the Price

• The price is payable by bank transfer–you can specify a Polish or foreign account (IBAN); there is no Polish tax on the mere transfer of money abroad.
• Notarial deposit (Article 108 of the Notarial Law): the buyer deposits the price into the deposit before the deed, and the notary disburses it after the transfer of ownership–standard safety when selling through a power of attorney.
• Exchange rates and fees: with large amounts, exchange rate differences between banks and specialized currency exchange/fintech can reach thousands of zlotys–compare before transferring.
• AML: the bank may request source documents (sales deed, inheritance documents)–this is routine, keep them handy.

Little-Known Facts and Tricks

• Trusted profile can be arranged from abroad–you can confirm it for free at any Polish consulate or online through Polish electronic banking. With a trusted profile, you have e-Tax Office (SD-Z2, e-correspondence) without flying in.
• Certificate from the US is no longer needed for family: from July 13, 2025, those exempt under Article 4a do not need to show the notary a certificate of inheritance tax settlement–however, keep a copy of SD-Z2 with confirmation.
• The value as of the date of death works twice: once as the basis in SD-Z2, and once as the stepped-up basis for the IRS–ensure consistency between both valuations.
• Canada in the apostille system from January 11, 2024–Canadian documents no longer require consular legalization.
• Multiple heirs = one transaction, separate settlements: all (or their attorneys) must appear for the deed; each settles their share separately.
• Do not sell "quickly" below market value–the Polish office may challenge the price, and you also lose on the stepped-up basis.

Common Mistakes

• Missed SD-Z2–the most expensive mistake for the Polish diaspora; the deadline also applies to those living abroad.
• Power of attorney in the wrong form–a simple "notarized" document without consultation with a Polish notary, without apostille, or without sworn translation.
• Too narrow power of attorney–lack of authorization for receipt of the price or tax declarations means a second round of documents.
• Forgotten Form 3520–penalties up to 25% of the value of the inheritance for purely informational reporting.
• Omitted FBAR from the Polish account with the sale proceeds.
• Lack of valuation as of the date of death–without it, it is difficult to prove the stepped-up basis.
• Settling only in the USA or only in Poland–property is always settled in Poland first; in the USA additionally, with a tax credit.
• Sending money without source documents–AML blocks can last for weeks.

Frequently Asked Questions

Do I need to fly to Poland to sell the inherited apartment?

No. The inheritance proceedings, SD-Z2, registration in the land and mortgage register, and the sales deed can be handled by a power of attorney. Flying in is only convenient for signing the power of attorney at a Polish notary–but this can also be done abroad.

I'm selling an apartment after my mother, who bought it in the 90s. What tax will I pay in Poland?

None–5 years counted from the acquisition by my mother have long passed. You also do not submit any declaration in Poland.

Will I pay tax in the USA from the sale?

Usually not or almost not: the cost basis is the value as of the date of death (stepped-up basis), and selling shortly after the inheritance gives a gain close to zero. Remember, however, about Form 3520 (inheritance > 100,000 USD) and FBAR.

What does the power of attorney from the USA look like?

Prepare the content with the Polish notary handling the sale, sign according to the specified form, attach apostille from your state, and a sworn translation. Alternatively, use the Polish consulate.

Can I immediately transfer the sale proceeds to the USA?

Yes–this is your taxed (or exempt) money; there is no Polish tax on the transfer. The bank may request the sales deed and inheritance documents (AML), and in the USA, remember about FBAR if the funds were in a Polish account.

There are three of us heirs in three countries. How do we handle this?

Each of you gives a power of attorney (it can be the same attorney), you sell with one agreement, and the notary divides the price into three accounts. Each settles their share in their country of residence and–if necessary–in Poland.

What if I learned about the inheritance years later?

The SD-Z2 deadline runs from the day you learned about the acquisition of the inheritance (you must substantiate this), and from January 7, 2026, you can also apply for reinstatement of the deadline in case of no fault. Do not hide the inheritance–bringing it up before the office "renews" the tax obligation.

Fact-Check Summary

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