Gift of an Apartment within the Family: No Tax, but Not Without Pitfalls – Notary, Inheritance Rights, Life Estate (2026)

Do you want to transfer an apartment to a child, grandchild, or sibling – while still alive, instead of through inheritance? A gift within the immediate family in Poland is completely tax-free, with no value limit, and with a notarial deed, there is no need to submit any notification to the tax office. However, gifting an apartment also has its pitfalls that few discuss: inheritance rights that can "catch up" with the recipient years later, tax on a too-quick sale, assumed debt, and even fees for the donor's care home. This guide walks you through the entire operation step by step – with costs, loopholes, and a comparison with a life estate agreement, which works better in some families.

Last verification: July 20, 2026. Informational material – not legal or tax advice. Regulations and interpretations may change; consult your situation with a notary, tax advisor, or the National Tax Information before signing the deed.

In Brief

Step by Step: How to Execute a Gift of an Apartment

1. Determine who is gifting to whom – and check the tax group

   The "group 0" exemption includes: spouse, children, grandchildren, great-grandchildren, parents, grandparents, siblings, stepfather, stepmother, and stepchild. It does not include in-laws, son-in-law, daughter-in-law, or, for example, an unmarried partner. If the apartment belongs to the joint property of spouses, both must agree to the gift.

2. Gather documents for the notary

   Land registry number, basis of acquisition (purchase deed, gift deed, or inheritance documents), certificate of no registered residents (practice), tax certificates if the donor acquired the apartment through inheritance or gift. The notary will provide a detailed list.

3. Consider securing the donor

   The most common solution: a lifetime personal right of residence established in the same deed – gives the donor the right to live there for life, recorded in the land registry and effective against any future owner.

4. Sign the notarial deed

   The notary collects fees and charges, pays any applicable tax (the notary is the taxpayer for the notarial gift tax), and submits an electronic application to register the new owner in the land registry.

5. After the gift: municipality and settlements

   The new owner submits the IN-1 information (property tax) within 14 days and takes over settlements with the community or cooperative and utility agreements.

Gift Tax – Who Really Pays Nothing

• A notarial gift in group "0" = zero tax formalities on your part. The SD-Z2 notification is not required when the agreement is in the form of a notarial deed – the notary submits the information to the office. (You submit SD-Z2 yourself, for example, for cash gifts via bank transfer.)
• Amounts from the last 5 years from the same person are cumulative (the current year and the previous 5 years are counted).
• The basis is the market value of the apartment after deducting burdens – including the established right of residence for the donor in the deed.
• An unmarried partner is in group III – a gift of an apartment worth 600,000 PLN means a tax of about 100,000 PLN. In such cases, it is often better to marry before the gift (spouse = group "0") or sell.

Apartment with a Mortgage – Here PCC May Appear

The gift itself is not subject to PCC. However, if the recipient assumes the donor's debts or obligations (e.g., takes over a mortgage with the bank's consent), that part of the transaction is subject to PCC at a rate of 2% (Article 1, paragraph 1, point 1, letter d of the PCC Act). It is different if the apartment is only encumbered by a mortgage, and the donor continues to pay the mortgage – then PCC on debt assumption will not apply, but the bank usually still needs to consent to the changes. Discuss the assumption of the mortgage with the bank before visiting the notary.

PIT: Donor Pays Nothing – Recipient Must Be Careful

Donor: the gift is not a paid transfer, so there is no PIT – even if the donor bought the apartment a year ago. The five-year clock from the PIT Act applies only to sales.

Recipient: their own 5-year clock starts from the end of the year in which they received the gift. Note – this is different from inheritance (there, the holding period of the decedent counts; with a gift, such a rule does not apply).

Inheritance Rights – A Trap That Returns After Years

A gift of an apartment to one child does not "disinherit" the others. When calculating inheritance rights, the gift is added to the estate – and this is without a time limit, if the recipient is an heir or entitled to inheritance rights (the 10-year "safety net" from Article 994 § 1 of the Civil Code applies only to gifts to third parties).

Example: a mother gifts an apartment to her daughter. After the mother's death (even 15 years later), the son can demand from the daughter an inheritance right calculated as if the apartment were still in the estate – generally half the value of his statutory share (2/3 if he is a minor or permanently unable to work). If there is almost no estate, the recipient is liable for the inheritance rights up to the amount of their enrichment (Article 1000 of the Civil Code). The claim expires after 5 years.

What can be done legally: talk to the family and consider a waiver of inheritance agreement (notarial, also covering inheritance rights), equalize the other children with other assets, or – if the donor receives real maintenance and care – instead of a gift, enter into a life estate agreement, which is not counted towards inheritance rights.

Gift or Life Estate? Comparison

A life estate agreement (Article 908 of the Civil Code) is a transfer of ownership of real estate in exchange for lifetime maintenance (housing, meals, care, burial). It is a paid agreement – and thus has completely different effects:

In families where one child actually cares for the parent, a life estate can be a fairer and safer solution – despite the PCC 2%.

Securing the Donor: Right of Residence

• Established in the gift deed, a lifetime personal right of residence gives the donor the right to reside until death – regardless of who will be the owner.
• The right of residence is recorded in the land registry – it is effective against the buyer, thus effectively blocking the sale of the apartment "over the donor's head."
• The value of the right of residence lowers the tax base of the gift – the annual value is 4% of the apartment's value, and with a lifetime right of residence, a 10-year period is assumed, totaling 40% of the value (Article 12 of the SD Act as amended from August 20, 2025; the former Article 13 has been repealed). This is significant outside group "0".
• In the deed, immediately submit a request for entry of the right of residence in section III of the land registry – only disclosure in the registry fully protects against a buyer acting in reliance on the land registry.
• Merely registering or verbal promises do not secure anything – registration does not grant the right to the premises.

Revocation of the Gift – When Can It Be Withdrawn

• Gross ingratitude of the recipient (Article 898 of the Civil Code): violence, serious insults, abandonment in illness. Deadline: 1 year from the day the donor learned of the ingratitude. Ordinary family conflicts usually do not suffice.
• Donor's need (Article 897 of the Civil Code): the recipient has an obligation to assist within the limits of the existing enrichment.
• Revocation of the gift of real estate does not automatically transfer ownership back – a return transfer is needed (voluntary or through the court).

Little Known Pitfalls and Curiosities

• Social care home: contrary to circulating opinions, the social assistance act does not contain a provision burdening the "recipient" as such with fees. However, the risk exists through another route: the gifted child is still obliged to pay for the parent's care home as a descendant (Article 61 of the social assistance act, with income above the threshold), and the donor in need can demand support from the recipient within the limits of their enrichment (Article 897 of the Civil Code). Thus, a gift is not a way to "escape" care costs.
• Gift of an inherited apartment: if the donor acquired the premises through inheritance, the notary may need to settle the tax from that acquisition – but from July 13, 2025, a certificate from the tax office is no longer required if that acquisition was exempt under Article 4a or occurred through a notarial deed after 2006 (Article 19, paragraph 7 of the SD Act). In other cases, consent or a certificate from the head of the tax office is still necessary – take care of this in advance. See also: Did You Inherit an Apartment in Poland?
• Missed SD-Z2 deadline can be salvaged: for gifts requiring notification (e.g., cash via bank transfer), from January 7, 2026, you can apply for restoration of the deadline if the failure occurred without the taxpayer's fault (Article 4c of the SD Act).
• Citizenship matters for exemption (crucial for the Polish diaspora!): the exemption under Article 4a applies only if, at the time of acquisition, the recipient has Polish citizenship, EU or EFTA citizenship, or residence in Poland or such a country (Article 4, paragraph 4 of the SD Act). A child with only American citizenship living in the USA does not meet the condition – they will pay tax as group I (exemption amount 36,120 PLN, rates 3–7%). If the child also has a Polish passport – the exemption applies. Check this before the deed!
• Apartment in Poland = Polish tax regardless of where the parties reside. Citizens/residents of the USA should additionally check American gift regulations (e.g., donor notifications in the USA) with their advisor.
• Notarial fees may be lower for family – but conditionally: half the maximum rate applies for the gift of a premises constituting a separate property between persons from group I, when the recipient is entitled to housing relief under Article 16 of the SD Act (§ 6 point 15 of the regulation on fees). Regardless, for transactions between immediate family, the fee has a lower cap (7,500 PLN instead of 10,000 PLN), and the rates are maximum – negotiation is always possible.
• There is no "wealth tax" – the only levy on gifts is the inheritance and gift tax, which is zero in group "0".

Common Mistakes

• "Gift agreement" written at home – a gift of real estate without a notarial deed is invalid.
• Confusing group "0" with group I – gifts from in-laws are taxed above the exemption amount.
• Quick sale of the gifted apartment without a plan for housing relief – 19% on almost the entire price.
• Ignoring inheritance rights – "transferring" the apartment to one child without discussing it with the rest of the family is a recipe for a court dispute years later.
• Lack of right of residence for the donor – the parent is left without legal title to their former apartment.
• Assuming a mortgage without the bank's consent and without calculating PCC.
• Gift to an unmarried partner – group III and tax up to 20%.
• Concealing previous gifts from the same person – amounts from the last 5 years are cumulative.

Frequently Asked Questions

Does gifting an apartment to a child require notification to the tax office?

No – with a gift in the form of a notarial deed, the notification obligations are performed by the notary. You submit SD-Z2 yourself only for gifts without a deed (e.g., cash via bank transfer) – then keep an eye on the 6-month deadline.

How much does it cost to gift an apartment at a notary's office?

The notarial fee depends on the value of the apartment – for example, for a premises worth 60,000–1,000,000 PLN, a maximum of 1,010 PLN + 0.4% of the excess over 60,000 PLN, with a cap of 7,500 PLN between persons from group I (the rates are maximum – negotiation is possible). Additionally, 23% VAT on the fee, copies, and a court fee of 200 PLN for registering ownership in the land registry (and a separate fee for registering the right of residence). There is no gift tax in group "0".

Can I gift an apartment and still live in it?

Yes – establish a lifetime personal right of residence in the gift deed. It will be recorded in the land registry and effective against any future owner.

Can the child sell the apartment immediately after the gift?

Formally yes, but within 5 years (from the end of the year of the gift) they will pay 19% PIT on almost the entire price – unless they allocate the income for their own housing purposes within 3 years (housing relief) or wait 5 years.

I gifted an apartment to my son, who does not care for me. Can I take it back?

Only in cases of gross ingratitude (e.g., violence, abandonment in illness) – and within a year of its occurrence. Ordinary cooling of relations usually does not suffice. This is the main argument for choosing a life estate agreement instead of a gift when expecting care.

Does a gift protect the apartment from inheritance rights for the other children?

No – gifts to children are added to the inheritance rights without a time limit. However, a life estate agreement (which is paid) or a notarial waiver of inheritance by the other entitled parties protects against inheritance rights.

I live in the USA and want to gift an apartment in Poland to my daughter in the USA. What do I need to check?

On the Polish side: whether the daughter meets the citizenship condition (Polish/EU/EFTA) or residence in Poland for tax exemption; the deed can be signed by a proxy in Poland (notarial power of attorney with apostille). On the American side: the gift regulations applicable to the donor-resident of the USA – consult with a local advisor.

Fact-Check Summary

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