Money Donations Within the Family: No Tax, But Only via Bank Transfer – SD-Z2, Limits, and Cash Pitfalls (2026)

Parents want to help their child with a down payment, a grandmother gives her grandchild savings, a brother supports his sister after moving – money donations within the family are a daily occurrence. And while immediate family can transfer any amount without tax, every year thousands of people fall into two traps: missed SD-Z2 notifications and – even more frequently – cash handed over “in hand", which can jeopardize the exemption even with a timely submitted form. This guide explains in detail: who can donate and how much, how to correctly transfer money (bank transfer!), how to complete formalities in 15 minutes online, what penalties apply for mistakes – and how it works when money flows from abroad or to abroad.

Last verification: July 21, 2026. Informational material – not tax advice. In unusual situations, confirm your situation with the National Tax Information or request an individual interpretation.

In Brief

How Much Can Be Donated Without Formalities – and When Does Paperwork Start

• Limits are calculated separately for each donor: mom and dad are two separate limits (and two separate SD-Z2s if needed); grandma and grandpa – another two.
• Cumulative: sum donations from the same person from the year received and the 5 previous years (art. 9 sec. 2 of the SD Act).
• Group “0” includes: spouse, children, grandchildren, parents, grandparents, siblings, stepfather, stepmother, stepchild. Unmarried partner = group III.

How to Transfer Money CORRECTLY – Instructions

1. Transfer from the donor to the recipient's account

   Legal requirement (art. 4a sec. 1 point 2): receipt of money documented “by proof of transfer to the recipient's payment account... in a bank or SKOK or by postal transfer". This applies when the total donations from that person (year + 5 years) exceed 36,120 PLN. Safest: regular transfer from the donor's account. According to KIS practice, the condition is also met by cash deposit by the donor at the bank counter or ATM to your account – it is crucial that the proof indicates that the donor made the deposit. What not to do: take cash in hand (see below).

2. Description of the transfer: short and clear

   “Donation from mom Anna Kowalska" is sufficient. Do not write “loan,” “refund,” or “for the apartment” – the title of the transfer is often the first evidence read by the office.

3. Written donation agreement – worth it, though not necessary

   For larger amounts, write a simple agreement (parties, amount, date, signatures). It facilitates SD-Z2, discussions with the bank when applying for a loan, and cuts future disputes (also regarding inheritance – donations to children are counted towards it without a time limit).

4. SD-Z2 within 6 months of receipt

   The deadline runs from the receipt of money (at this moment the tax obligation arises). You can submit the notification in 15 minutes online via the e-Tax Office – the service is free; a separate notification for each donor.

5. Keep evidence indefinitely

   Keep the transfer confirmation + UPO from SD-Z2 in your archive – the office may ask about the source of funds even years later (e.g., when purchasing real estate), and then these two PDFs close the topic in 5 minutes.

Cash in Hand – Why It's a Trap

• The cash dispute was resolved by the resolution of 7 judges of the NSA from March 20, 2023 (III FPS 3/22): the condition for exemption is documenting the transfer of funds in a statutory manner “by the donor to the recipient".
• The tax office applies this consistently to this day – in the interpretation from April 2, 2026 (0111-KDIB2-2.4015.26.2026.1.PB) KIS states directly: funds must be deposited by the donors into the recipient's account. Scenario “I received an envelope and deposited it myself" = loss of exemption, even with SD-Z2 submitted on time.
• What is accepted: transfer (including from abroad), postal transfer, cash deposit made by the donor at the bank counter/ATM (identifiable depositor – KIS practice, including 0111-KDIB2-2.4015.140.2021.1.MM).
• What happened? Honestly: it cannot be fixed retroactively. If the total from that person exceeds the limit – settle the tax according to group I, before the office asks itself (then you risk 20%). For amounts within 36,120 PLN – nothing happens, the documentation condition does not apply to you.

What Are the Consequences of Mistakes

Common Life Scenarios

• Down payment for an apartment: the bank will still require documentation of the donation (agreement + transfer + SD-Z2) – do it right away, not “after the loan." More in the mortgage guide.
• Donation from both parents: best to make two transfers – one from each (two limits, two SD-Z2s). When transferring from a joint account, KIS interpretative practice assumes the donation from each parent equally – one transfer is sufficient, but you submit two SD-Z2s (including interpretation 0111-KDIB2-3.4015.74.2023.1.ASZ).
• Donation for a minor: money to the child's account, parents submit SD-Z2 as representatives; accepting a “pure" donation does not require the consent of the guardianship court (established practice).
• Wedding and reception: customary wedding gifts fall within the tax-free amounts from individual persons; larger envelopes from parents – transfer after the wedding and SD-Z2 if the total from one person exceeds the limit.
• Regular support (e.g., 2,000 PLN/month): these are also donations – count cumulatively; after exceeding 36,120 PLN from a given person within a 6-year window, report the total in SD-Z2.

Money Across Borders – For the Polish Diaspora

• Parent in the USA → child in Poland: Polish exemption works normally (international transfer = full documentation; SD-Z2 within 6 months). On the US side, the donor-resident must follow their rules: donations above the annual exclusion (19,000 USD per recipient – the same in 2025 and 2026) must be reported on Form 709; actual tax arises only after the lifetime limit is exhausted, raised from 2026 to 15 million USD (OBBBA Act – confirmed on irs.gov).
• Parent in Poland → child in the USA: beware of the exemption condition – the recipient must have Polish/EU/EFTA citizenship or reside in Poland/EU/EFTA (art. 4 sec. 4). A child with only an American passport residing in the USA will not benefit from the exemption (will pay according to group I). On the US side, the recipient does not pay tax, but donations from foreign persons over 100,000 USD annually must be reported on Form 3520 (penalties for failure to report up to 25% of the amount!).
• Exchanges and AML: larger international transfers may prompt the bank to inquire about the source – a donation agreement and SD-Z2 again do the job.

Most Common Mistakes

• Cash “in hand" for amounts over the limit – see above; this is a mistake that often cannot be fixed.
• “I will report it when the office asks" – then instead of 0% it can be 20%.
• One SD-Z2 for a donation “from parents" – notifications and limits are for each donor separately.
• Counting the limit from zero each year – the window includes the current year plus the 5 previous years.
• Confusing “0" with group I – in-laws are not in group “0".
• Transfer title “loan" for a donation (and vice versa).
• Throwing away confirmations – keep evidence indefinitely.

Frequently Asked Questions

My parents want to give me 200,000 PLN for an apartment. Will I pay tax?

No – if you receive the money by transfer (preferably 100,000 PLN from each parent) and submit two SD-Z2s within 6 months. The exemption in group “0" has no upper limit.

Grandma gave me 50,000 PLN in cash for my grandson's communion. What now?

You have a problem: your own deposit of that cash into the account will not meet the exemption condition (NSA resolution III FPS 3/22). If the money is still “untouched," the only path accepted in KIS practice is a deposit made personally by grandma into your account (bank counter, with her identification as the depositor) – and SD-Z2 on time; in case of doubts, confirm your factual situation with KIS or an individual interpretation. If the condition has lapsed – settle the tax according to group I (for 50,000 PLN from grandma, that is tax only on the excess over 36,120 PLN), before the office asks itself.

Do I have to report 500 PLN monthly from my mom?

No, as long as the total from mom for the current year and the 5 previous years does not exceed 36,120 PLN – so at 500 PLN/month, the limit will be exhausted in about 6 years. After that: transfers + SD-Z2 covering the excess.

I forgot about SD-Z2, 8 months have passed. Is everything lost?

Not necessarily: if you learned about the donation later – 6 months run from the moment of learning; and from January 7, 2026, you can also submit a request for restoration of the deadline, substantiating no fault (e.g., hospital stay – art. 4c). Ordinary forgetfulness unfortunately is not enough – then settle the tax according to group I, before the office asks itself.

Does the office really detect such donations?

Yes – most often indirectly: analysis of transfers during verification actions, property purchases inconsistent with income, information exchange with banks. It is in these scenarios that the question “where did the funds come from" arises – and article 15 sec. 4 (20%) is triggered if the donation was not reported.

Donation in euros/dollars – how to value it?

You convert to PLN according to the exchange rate on the day the tax obligation arises (receipt). In SD-Z2, you state the amount in PLN; confirmation of the currency transfer fully documents the donation.

Fact-Check Summary

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