A gift of premium real estate can be a beneficial way to transfer assets, especially to immediate family. Meeting the exemption requirements allows you to avoid inheritance and gift tax, regardless of the value of the apartment, house, or residence. Outside of the group of individuals eligible for the full exemption, however, the high value of the asset can result in taxes in the hundreds of thousands of złoty. Therefore, before signing the deed, analyze the relationship between the parties, the legal status of the property, and the plan for its future use.
An apartment worth several million złoty can be gifted to a child tax-free, while a gift of an identical asset to a distant relative can generate a significant liability. Therefore, the profitability depends not only on the property’s value but also on the relationship, the form of the transaction, and the recipient’s plans.
What will you learn from the text? In short
This guide shows how taxes, kinship, deed form and subsequent sale plan affect the profitability of gifting premium real estate.
The most important rules for donating premium real estate:
- Exemption for group 0 – people belonging to this group can receive real estate with full tax exemption regardless of its value.
- SD-Z2 form – in the case of a donation made in the form of a notarial deed, the donee does not submit it separately.
- Group I outside group 0 – parents-in-law, son-in-law and daughter-in-law belong to tax group I, but close kinship alone does not provide them with full exemption.
- Sale for a symbolic price – selling real estate “for PLN 1” does not mean PCC calculated on PLN 1, because the basis is the market value.
- Subsequent sale – sale of real estate before the expiry of 5 years from the end of the year of its acquisition as a gift may result in 19% PIT on income.
What is a real estate donation and who can donate it?
A gift of real estate involves the gratuitous transfer of ownership or a specific share to the donee, without receiving any financial resources in return. The Civil Code defines a gift as a gratuitous benefit provided at the expense of the donor’s assets, with the transfer of ownership of real estate requiring a notarial deed ( eli.gov.pl ).
The subject of a premium real estate donation may be:
- apartment,
- apartment,
- house,
- residence,
- plot,
- share in ownership.
The donor must have the right they intend to transfer – for example, a parent who is the sole owner of an apartment could gift it to an adult child. If the property belongs to the joint property of the spouses, the rights of the other spouse must be taken into account when disposing of it.
Joint ownership and marital property – principles of effective real estate management
In the case of joint ownership, first determine what share actually belongs to the donor. In the case of joint property of spouses, the disposal of the property requires taking into account the rights of both spouses ( eli.gov.pl , eli.gov.pl ).
The scope of rights of individual persons when donating premium real estate is as follows:
- The owner of the entire property may dispose of the asset within the limits of his rights.
- A co-owner by shares may, in principle, transfer his or her share, but not the shares belonging to the other co-owners.
- Spouses in the case of joint property – when disposing of real estate and donating from joint property, the consent required by law must be taken into account.
- The authorized representative – notary – will verify the scope of authorization and the form of the power of attorney appropriate for the planned activity.
- The owner of the encumbered property – the mortgage itself does not deprive him of the right of ownership, but requires an analysis of the land and mortgage register, the secured receivable and any liabilities assumed by the beneficiary.
The regulations provide for the possibility of subsequent confirmation of a contract concluded without the required consent. Therefore, the lack of such consent does not always mean the definitive invalidity of the act ( eli.gov.pl ).
Minor beneficiary – representation and management of the child’s property
A minor child may become the owner of real estate. However, the manner of their representation and the potential need for court permission depend on the structure of the specific gift. Parents manage the child’s assets, but for activities beyond ordinary management, regulations require appropriate permission ( eli.gov.pl ).
When donating real estate to a minor, the following are of primary importance:
- The nature of the inheritance – it must be determined whether the child receives the property without additional obligations.
- Encumbrances and liabilities – require a separate assessment if they affect the minor’s financial situation.
- Page layout of activities – the regulations specify cases in which a parent cannot represent a child.
Note: A conflict of interest between a parent and a child may require separate analysis when concluding a contract.
What tax applies to the donation of premium real estate?
A gift of premium real estate is generally subject to inheritance and gift tax. The amount depends primarily on the donor’s relationship with the recipient and the value of the acquired property.
The Act distinguishes three tax groups, with so-called Group 0 encompassing a specific group of individuals from Group 1 who can benefit from a full tax exemption. The tax-free amounts are currently PLN 36,120 in Group 1, PLN 27,090 in Group 2, and PLN 5,733 in Group 3. Acquisitions from the same person are aggregated according to the statutory five-year rules ( podatki.gov.pl ).
The tax base is the net value, i.e., the value of the property after deducting debts and liabilities, determined according to the principles set forth in the Act. Market prices are crucial for valuation – the tax authority may verify the value provided by the taxpayer ( eli.gov.pl ).
Premium property gift tax – groups, tax-free amounts and rates
The relationship between the donor and the donee affects both the tax-free amount and the tax rate or the possibility of applying a full exemption.
Table 1. Tax groups, tax-free amounts and rates for the donation of premium real estate
| Tax group | Sample report | Tax-free amount | Surplus rates | Full exemption of group 0 |
| Group 0 / part of group I | Spouse, children, grandchildren, parents, grandparents, siblings, stepson, stepfather, stepmother | No value limit once exemption conditions are met | 0% exemption | Yes |
| Group I outside group 0 | Father-in-law, mother-in-law, son-in-law, daughter-in-law | 36,120 PLN | 3%, 5%, 7% | NO |
| Group II | Including parents’ siblings, siblings’ descendants | 27,090 PLN | 7%, 9%, 12% | NO |
| Group III | Other persons, including, as a rule, a partner who is not a spouse | 5,733 PLN | 12%, 16%, 20% | NO |
Premium real estate gift tax – sample calculations for various tax groups
With a net property value of PLN 5 million and no prior acquisitions from the same person, a child receiving an asset from a parent could pay PLN 0 after meeting the exemption requirements. The estimated tax for a son-in-law, daughter-in-law, or father-in-law (Group I) would be approximately PLN 346,762, for Group II approximately PLN 595,803, and for Group III approximately PLN 997,434, according to the current tax scale ( podatki.gov.pl ).
Wyliczenia mają charakter poglądowy i opierają się na stanie prawnym obowiązującym na dzień publikacji.
In the case of premium real estate, the tax status of the recipient can change the cost of transferring the asset by several hundred thousand złoty. Before visiting the notary, also consider previous purchases from the same donor.
When is the donation of premium real estate tax exempt?
A gift of premium real estate may be fully tax-exempt if the recipient is a member of the statutory immediate family circle covered by Article 4a. The exemption covers, among others, spouses, children, grandchildren, parents, grandparents, siblings, stepchildren, stepfathers, and stepmothers. There is no upper limit on the value of the acquired property ( eli.gov.pl ).
The full exemption for a gift of premium real estate is subject to the following conditions and limitations:
- The actual family relationship – group 0 does not include the entire tax group I. Parents-in-law, sons-in-law, and daughters-in-law belong to group I, but kinship alone does not entitle them to full exemption from Article 4a.
- No value limit – the exemption can cover both premises of moderate value and an apartment or residence worth several or several dozen million zlotys.
- A notarial deed – a gift of real estate requires this form. Acquisitions made under such an agreement are not re-reported on the SD-Z2 form.
- A partner who is not a spouse – as a rule, belongs to tax group III and does not automatically benefit from the exemption provided for group 0.
- Other tax preferences – not every relief related to the purchase of real estate is an exemption provided for group 0.
In the case of a notarial gift of real estate, the donee does not need to submit a separate SD-Z2 form after signing the deed. The six-month deadline is relevant for other acquisition methods covered by Article 4a, when the exception concerning a notarial deed does not apply ( podatki.gov.pl ). Therefore, in the case of a high-value asset, the tax rate may be determined by family relationships, not the property price alone.
Donating premium real estate or selling it symbolically – which is more profitable?
In a family covered by Group 0, the gift of premium real estate often has a tax advantage over a symbolic sale. The price entered in the sales agreement does not automatically determine the tax base.
When selling real estate, the PCC tax generally amounts to 2% of the market value. For an asset worth PLN 5 million, this translates to PLN 100,000 in tax if the transaction is subject to PCC and a specific exemption doesn’t apply ( eli.gov.pl ).
Price also matters to the seller. If, without just cause, it significantly deviates from market value, the tax office may determine the income based on market value ( podatki.gov.pl ). There is also a statutory exemption from PCC for qualifying first-time purchases of apartments or houses, but this requires meeting certain conditions.
Donation and symbolic sale – taxes and legal consequences
Both activities result in a change of ownership, but differ in their nature, taxation method and consequences for the parties.
Table 2. Donation of premium real estate and sale at a very low price
| Criterion | Donation | Selling at a very low price |
| Nature of the activity | Free of charge | Paid |
| Tax at the buyer’s | Inheritance and gift tax with the possibility of full exemption for group 0 | As a rule, PCC 2% of the market value if the transaction is subject to PCC |
| The importance of market value | Tax base outside the exemption | PCC is based on the market value, not on the price of PLN 1 |
| Seller’s PIT risk | A classic donation does not, in principle, constitute a sale for consideration. | PIT possible for sales before 5 years |
| Reduced price | There is no selling price | The tax office may investigate a significant departure from the market value |
| Reserve share | Donation may affect its calculation | Actual paid sales are subject to different rules |
| The most natural goal | Free transfer of property | Actual sale at agreed equivalent |
Donation vs. symbolic sale of premium real estate – cost comparison for a value of PLN 5 million
If a parent wishes to give their child an apartment worth PLN 5 million, a properly executed donation may benefit from the full exemption. However, including a PLN 1 price in the sales agreement will not result in a 2 groszy tax on civil law transactions. A donation may, in exceptional cases, be subject to civil law transactions on the part concerning the debts, liabilities, or obligations of the donor assumed by the donee ( eli.gov.pl ).
The profitability of both solutions must therefore be calculated for the beneficiary and the seller, taking into account the tax group, acquisition history, available exemptions and the future plan for using the property.
What is the notarial procedure for the donation of premium real estate?
The premium real estate donation process includes preparing documents, verifying legal status, signing a notarial deed, submitting appropriate applications, and settling taxes. Before concluding the agreement, the notary verifies the parties, the title deed, and the documentation relating to the asset.
In a typical gift of existing real estate, ownership transfers to the donee upon execution of an effective deed. There’s no need to wait for the new owner to be later entered in the land and mortgage register ( eli.gov.pl ).
Premium real estate donation – documents and stages of the notarial deed
The scope of documents depends on the type and legal status of the asset, but a typical procedure includes several basic elements:
- Data and documents of the parties – information needed to identify the donor and the beneficiary.
- Land and mortgage register number – enables verification of ownership, mortgages, easements, claims and other disclosed rights.
- The basis for the acquisition by the donor – e.g. a previous deed of sale or gift, a deed of inheritance certification or a court decision.
- Tax documents relating to prior acquisitions – in certain situations, the notary may require an appropriate tax certificate.
- Documents depending on the type of asset – a property with a land and mortgage register, cooperative law, a house or a plot of land may require a different set of documents.
- Consents resulting from legal status – e.g. consent of the other spouse.
- Determining the value of real estate – important for tax settlements and notarial costs.
- Signing the deed and accepting the donation – along with any establishment of additional rights.
- Land and mortgage register application – after signing the deed, an appropriate application is submitted for entry in the land and mortgage register.
- Tax settlement – if tax is payable, the notary acts as the payer for a donation prepared in the form of a notarial deed ( eli.gov.pl ).
The list is not exhaustive. The final set of documents depends on the legal status of the specific property and the structure of the planned contract.
Premium property donation costs – fees and charges
The cost of the deed includes not only any tax, but also the notary’s remuneration, extracts, VAT and fees related to the land and mortgage register.
The most important costs of notarial donation of premium real estate include:
- Notary fee – for transactions exceeding PLN 2 million, the maximum rate is PLN 6,770 plus 0.25% of the excess over PLN 2 million, but not more than PLN 10,000. For transactions between individuals in tax group I, the limit is PLN 7,500 ( eli.gov.pl ).
- Other costs of the deed – may include extracts, VAT on the service and fees related to additional entries.
- Entry of ownership into the land and mortgage register – the fee is generally PLN 200 ( eli.gov.pl ).
Practical tip: the maximum fee rate is not an automatic price for a law firm’s services. When registering a legal interest, the court fee amount is subject to separate rules.
Personal servitude – preserving the donor’s right to reside
A donor who wishes to transfer ownership of a property while continuing to live there may consider establishing a personal easement. Ownership then passes to the donee, while the donor retains the right to use the house or premises, as defined in the agreement ( eli.gov.pl ).
When establishing a personal easement, two elements are important:
- The scope of the donor’s right should correspond to the actual needs of the parties and may be disclosed in the land and mortgage register.
- A type of legal structure – an easement should not be identified with a life annuity contract, which is a separate solution and covers a broader package of benefits for the seller ( eli.gov.pl ).
A properly established right to use a specific part of the house provides the donor with solid protection.
Donation of premium real estate and subsequent sale – what are the tax consequences?
The sale of real estate received as a gift before the expiry of five years from the end of the calendar year in which the donee acquired it may be subject to personal income tax. The income tax rate is 19%. The exception allowing for the inheritance period to be counted from the date of the testator’s acquisition of the real estate does not apply to ordinary donations ( podatki.gov.pl ).
A person who receives an apartment as a gift in 2026 will have a five-year period counted from the end of 2026. Sales between 2027 and 2031 may therefore create a source of taxable income. Sales from January 1, 2032, will occur after the five-year period has elapsed ( podatki.gov.pl ).
Sale of real estate from a gift – costs and housing relief
When selling before the end of five years, the tax amount is influenced not only by the income generated, but also by allowable costs and the possibility of applying housing relief.
When settling the sale of real estate received as a gift, take into account:
- Tax-deductible costs – their scope is narrower than for purchases. The price previously paid by the donor cannot be automatically accepted as a tax-deductible cost.
- Documented expenditures – expenses increasing the value of the property incurred during its ownership and the appropriate portion of inheritance and gift tax paid may be of importance.
- Housing relief – part or all of the income may benefit from the exemption if the income is allocated to own housing purposes within the statutory period of 3 years counted from the end of the year of sale ( podatki.gov.pl ).
If, after a tax analysis, the owner decides to sell the asset, he should compare its standard, location and real value with the segment luxury properties for sale , rather than basing the price solely on the historical value recorded in the deed of gift.
When does a premium property donation pay off?
A premium real estate donation is a particularly interesting solution when the goal is to actually transfer the asset free of charge to a person from group 0, the legal status of the property is in order, and the further ownership plan takes into account a possible sale and its tax consequences.
Before making a decision, also consider elements that go beyond gift tax itself:
- Legitimate share – gifts made by a later testator are generally included in its calculation. The exception for gifts made more than 10 years before the opening of the inheritance does not apply to every gift, regardless of the recipient ( eli.gov.pl ).
- Mortgage and other encumbrances – affect the legal status of the asset and may require additional analysis before signing the contract.
- The donor’s right to continue to use the property – this can be taken into account in the structure of the transaction, e.g. through an appropriately established easement.
- Succession plan – the effects of a gift must be compared with, among others, a life estate, a will or an actual sale.
The mere possibility of tax avoidance does not guarantee that a gift will be the right solution in every family situation. Signature Estates does not replace a notary, tax advisor, or lawyer, but can support you in analyzing the value, market situation, and preparing the transaction. If the next step is to sell or streamline your real estate strategy, our experienced a team of real estate advisors will help coordinate the market part of the process with the work of appropriate specialists.
FAQ – Frequently asked questions about premium real estate donations
The answers below primarily apply to real estate held by individuals. Assets related to business, partnership, VAT, or cross-border estate planning require separate analysis.
Is a gift of premium real estate from a parent to a child taxable?
A gift of premium real estate from a parent to a child can benefit from a full exemption because the child is in group 0. The exemption does not depend on the value of the property. For a notarial deed, an additional SD-Z2 form is not required ( podatki.gov.pl ).
Can I donate a premium property with a mortgage?
Premium real estate with a mortgage can be donated, as the security itself does not prevent the transfer of ownership. However, the mortgage, loan agreement, and any assumption of liabilities must be carefully analyzed. PCC may appear in the donation section regarding the donor’s debts, liabilities, or obligations assumed by the donee ( eli.gov.pl ).
Does the donation of premium real estate affect the compulsory portion?
A gift of premium real estate can impact the statutory share, as gifts made by a later testator are generally included in its calculation. The rule regarding gifts made more than 10 years ago applies to specific gifts to individuals who are neither heirs nor entitled to statutory share. Therefore, it cannot be assumed that every gift loses its significance after a decade ( eli.gov.pl ).
Can a real estate donation be revoked after the donor’s financial situation deteriorates?
A subsequent deterioration in the donor’s financial situation alone does not constitute grounds for revoking a gift of real estate under the terms applicable to gifts not yet made. A gift may be revoked, for example, in the event of gross ingratitude by the donee, in accordance with the principles set forth in the Civil Code ( eli.gov.pl ).
Can I immediately sell a premium property received as a gift?
Premium real estate received as a gift can be sold immediately, but selling it before the end of five years from the end of the year of its acquisition by the recipient may result in the obligation to settle the 19% personal income tax (PIT). After meeting statutory requirements, housing tax relief may be applied ( podatki.gov.pl ).
Bibliography
- https://eli.gov.pl/eli/DU/1964/93/ogl
- https://eli.gov.pl/eli/DU/1964/59/ogl
- https://www.podatki.gov.pl/podatki-osobiste/sd/stawki-i-limity
- https://eli.gov.pl/eli/DU/1983/207/ogl
- https://podatki.gov.pl/podatki-osobiste/sd/ulgi-i-zwolnienia
- https://eli.gov.pl/api/acts/DU/2024/295/text.html
- https://podatki.gov.pl/podatki-osobiste/pit/informacje-podstawowe/co-jest-opodatkowane/zbycie-nieruchomosci
- https://eli.gov.pl/api/acts/DU/2024/1566/text.html
- https://eli.gov.pl/api/acts/DU/2024/959/text.html
Katarzyna Borkowska