Have you received a gift from a relative? Find out who is exempt from gift tax, when to submit the SD-Z2 form, and what deadlines to keep track of in 2026.
A gift from family is one of the most common ways of transferring assets between generations — whether in the form of cash, real estate, or company shares. Polish tax law provides for far-reaching exemptions in such cases; however, benefiting from them requires fulfilling specific formalities. Missing the reporting deadline or failing to submit the appropriate form may result in having to pay tax that could have been avoided. In this article, we explain who belongs to the so-called zero-rate group, how to correctly complete the SD-Z2 form, and which deadlines deserve particular attention.
The Act on Inheritance and Gift Tax distinguishes three tax groups, but the so-called zero-rate group holds a special position. It includes the closest family members of the donor: • spouse • descendants (children, grandchildren, great-grandchildren) • ascendants (parents, grandparents) • stepchild • siblings • stepfather and stepmother Persons in this group may receive a gift of any value without having to pay tax — on one condition: they must correctly and promptly report the acquisition of assets to the US. Kinship alone is not sufficient. Importantly, the exemption does not automatically apply to more distant relatives, such as aunts, uncles, or cousins — they settle gift tax under the general rules, benefiting only from the tax-free allowances assigned to their respective tax group.
SD-Z2 is a notification of the acquisition of ownership of things or property rights — a form that must be submitted to the US having jurisdiction over the recipient's place of residence. It is a prerequisite for benefiting from the tax exemption for persons in the zero-rate group. The form must be submitted within 6 months of the date on which the tax liability arose, i.e. from the date of: • conclusion of the gift agreement, if it was made in writing or as a notarial deed • fulfilment of the promised consideration — in the case of an oral gift If the gift agreement was drawn up by a notary, the notary is obliged to send the relevant information to the US. In such a case, the recipient does not need to submit the SD-Z2 independently. However, for cash gifts made without the involvement of a notary, this obligation rests solely with the recipient.
A cash gift benefits from the tax exemption in the zero-rate group provided that its receipt has been documented in an appropriate manner. Tax authorities require that the funds be transferred: • by bank transfer to the recipient's account • by postal order Cash handed over "in person" does not meet this requirement — even if a written gift agreement has been drawn up. The absence of banking documentation means that in the event of an audit, the US may challenge the right to the exemption and assess tax together with interest. It is therefore advisable to ensure that every cash gift from a family member is documented with proof of transfer. This applies in particular to larger amounts that may arise in connection with, for example, the purchase of a flat or the establishment of a business by the recipient.
The obligation to submit the SD-Z2 form applies to a broad range of assets transferred by way of gift. In practice, the most common are: • monetary funds (cash, bank transfers) • real estate (flats, houses, plots of land) • shares in companies and stocks • vehicles and other movable property • property rights, e.g. receivables In each case, the market value of the gifted item as of the date of receipt must be stated in the form. This value must not be understated — the US has the right to challenge the declared amount and appoint its own expert appraiser. Therefore, in the case of a real estate gift, it is advisable to base the valuation on current transaction prices for similar properties in the area, or to commission a valuation from a certified property appraiser before submitting the notification.
Failure to submit the gift notification within the 6-month deadline is one of the most common mistakes that costs taxpayers the loss of their exemption. The consequences are serious: • loss of the right to the tax exemption — the gift becomes taxable at the rates applicable to tax group I • obligation to submit an SD-3 tax return and pay the tax • potential interest for late payment if the US discovers the gift during an audit An exception applies where the recipient voluntarily comes forward to the US — under the so-called active regret (czynny żal) procedure, they may avoid fiscal penal sanctions, but will still be required to pay the gift tax. This is why it is so important to ensure the timely submission of the SD-Z2 immediately after receiving a gift and to retain documentation confirming the transfer of funds.
Sole traders and partners in companies should pay attention to additional issues related to gifts in a business context. If a parent transfers shares in a sp. z o.o. to a child, it is necessary not only to report the gift to the US, but also to update the company's articles of association and file an entry with the KRS. The gift of a business or an organised part thereof may be exempt from VAT, but only under strictly defined conditions. Furthermore, when the recipient introduces the gifted asset into their business activity (e.g. a vehicle or real estate), the question arises as to its initial value for depreciation purposes — which is of significant importance when settling income tax. In such cases, it is advisable to consult an accounting firm before making the gift, rather than only after receiving it.
A gift from close family can be completely tax-free — but only if you fulfil all the required formalities: submit the SD-Z2 on time and properly document the transfer of funds. If you have any doubts about correctly settling a gift or wish to avoid costly mistakes, contact the Danexis accounting firm. Our specialists will guide you through the entire process efficiently and safely. Call us at +48 780 760 666 or write to kontakt@danexis.pl.