On 6 October 2026, the Polish Supreme Administrative Court (NSA) ruled that when heirs divide an inherited property among themselves by transferring ownership to one heir in exchange for cash payments, the transaction constitutes a partition of inheritance (dział spadku) rather than a taxable civil law transaction (PCC). The tax authority had argued that the notarized deed labeled ‘division of joint property’ triggered the 2% tax on civil law transactions. The NSA disagreed, emphasizing that the economic substance was the dissolution of co-ownership arising from inheritance, which is exempt from PCC under the law. This decision provides significant tax savings for heirs settling estates and clarifies the boundary between inheritance partitions and taxable property transfers.
Key Takeaways
- Inheritance Partition Exempt from PCC: Transfers among heirs to dissolve co-ownership of inherited assets are not subject to the 2% civil law transaction tax.
- Substance Over Form: The NSA looked beyond the notarial deed’s label to the true nature of the transaction.
- Estate Planning Certainty: Heirs can structure estate divisions without fear of unexpected PCC liability.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement