How do parental gifts work in 2025?

A gift from parents is one of the most common ways of passing on money or assets to loved ones. Parents can give their child funds for a flat, a car or even shares in a company – all without having to pay tax, provided you complete strictly defined formalities. In 2025, it is particularly important to pay attention to the current limits, the rules on documenting and reporting gifts, and new interpretations by the tax authorities. The experience of experts at Firma dla Każdego shows that even minor oversights can result in unnecessary tax liability, so it is worth knowing the details before you transfer or receive a larger sum.

What forms can a gift from parents take?

A gift from parents does not always take the same form – the form it takes depends on what is being given. The most common are cash donations (bank transfer or postal order), but a parent may just as easily transfer property, a car, shares in a company or property rights to their child. In the case of a cash gift, it is essential to document the transfer – the funds must be paid directly into the recipient’s bank account. When transferring property or shares, a notarial deed is required, which immediately fulfils the obligations towards the tax office. Experts from Firma dla Każdego advise that, even in the case of smaller gifts, you should retain proof of the transfer – for your own protection in the event of any queries from the tax authorities.

Cash gifts from parents – when do you lose your tax exemption?

In recent years, the tax authorities have adopted a very strict stance on cash gifts from parents. The regulations require that the money be transferred by bank transfer or postal order directly into the recipient’s account. If a parent hands over the amount ‘in cash’ and the child subsequently deposits it into their own account, such documentation is not sufficient to qualify for a full exemption from inheritance and gift tax. This is confirmed by numerous interpretations issued by the Director of the National Tax Information Service in 2024 and 2025, which unequivocally state that a ‘deposit made by the recipient’ does not constitute proof of receipt of a gift within the meaning of the Act.

A gift to a joint account held by spouses – how should this be documented?

If a parent transfers a gift to a joint account held by a child and their spouse, it is possible to claim the SD-Z2 tax exemption – provided that the documentation clearly indicates who the actual recipient of the funds is. In practice, each recipient should declare their share of the gift separately, and the amounts received from each parent are totalled separately when calculating the exemption limit.

What limits and exemptions apply in 2025?

In 2025, the tax-free allowance for gifts from parents amounts to 36,120 PLN per person over a five-year period. This means that you can receive up to PLN 36,120 from each parent without needing to report this to the tax office. If you exceed this limit, you have 6 months from the date of exceeding it to submit form SD-Z2 and obtain the full tax exemption applicable to the so-called ‘zero tax group’ (i.e. immediate family). In practice, if parents transfer 100,000 zł to their daughter to buy a flat, and she has not previously received any gifts from them, she should report this to the tax office within 6 months to avoid tax.

For individuals outside the ‘zero tax group’, lower limits apply: PLN 27,090 for Group II (e.g. aunt, uncle) and PLN 18,060 for Group III (unrelated persons). Any amount exceeding these limits – if not declared or if it does not relate to immediate family – is subject to tax at rates ranging from 3% to as high as 20%. The threshold of 36,120 zł is new from July 2023 and will remain in force until at least the end of 2025.

When and how should you declare a gift from your parents?

Declaring a gift is a key condition for claiming the tax exemption. You have 6 months from the date of receiving a gift exceeding the limit of 36,120 zł (calculated by adding up all amounts from a single donor over the last 5 years). If the transfer took place by way of a notarial deed (e.g. when donating a flat), the notary will handle the formalities. In the case of a cash donation, you must complete and submit the SD-Z2 form yourself – available both online (via e-Deklaracje) and in paper form.

Attach proof of the transfer of funds (a bank transfer confirmation or postal order receipt) to your declaration. If you receive several donations in different years, add up their total value from the last 5 years from a single donor and declare that the limit has been exceeded. If you fail to submit the declaration – even if this is due to a lack of knowledge – you lose your right to the exemption and will be liable for tax on the amount exceeding 36,120 zł.

How do you choose the correct tax office?

You must report a cash gift to the tax office with jurisdiction over the recipient’s place of residence on the date the gift is received. If you receive a property, you must report it to the tax office responsible for the location of the property. For donations from abroad, the recipient’s place of residence in Poland is what counts.

What if you miss the deadline for submitting the SD-Z2 form?

The six-month deadline for reporting a gift is final. This means that even an informal correction will not help and will not save you from having to pay the tax and any interest. In extreme cases, the tax office may impose an additional penalty – of up to 20 per cent of the value of the gift. According to an interpretation by the Ministry of Finance (2025), unreported donations are not subject to a limitation period, so the risk of the arrears being ‘discovered’ remains for many years.

How do you document a cash donation?

To safely benefit from the exemption, you must have proof of the transfer of funds. The best solution is a bank transfer directly from the parent’s account to the child’s account. If a parent transfers money to a property developer’s account or that of a third party (e.g. when buying a flat), this will not meet the conditions for the tax exemption – as confirmed by interpretations issued by the Director of the National Tax Information Service in 2024 and 2025.

In the case of a ‘hand-to-hand’ donation (cash), even if the child subsequently deposits the funds into their own account, this will not be considered valid documentation. For the tax office, what counts is the transfer record. If the transfer was made by postal order, a confirmation from the post office is also accepted.

Can a gift from parents be revoked?

As a general rule, a gift from parents is irrevocable, unless the recipient shows gross ingratitude towards the donor. In practice, revoking a gift is very difficult and requires proof of serious grounds. Even if the gift is revoked, this does not alter the fact that a tax liability arose from the original transfer – the return of the assets does not reverse the tax consequences.

A gift from parents living abroad – what should you bear in mind?

If your parents live or work abroad and you are a Polish tax resident, you must declare the gift in Poland – even if the transfer comes from a foreign bank account. Tax regulations require the funds to be transferred directly to the recipient’s bank account (or foreign currency account) in Poland. Ideally, the parent should make an international transfer to their child’s account – such a document is sufficient proof for the tax office. Failure to report a foreign gift may also result in taxation under the general rules.

What are the most common mistakes when it comes to gifts from parents?

In day-to-day practice, most problems arise not from the amount of the gift, but from a lack of knowledge of the formal requirements. The most common mistakes are:

• Exceeding the limit of 36,120 zł and failing to report the gift on time – in which case the tax office will charge tax on the excess amount.
• Making a cash gift and having the recipient deposit the money into an account themselves – this does not qualify for exemption.
• A bank transfer made directly to the developer’s account or that of a third party – this is not recognised as a valid transfer to the recipient’s account.
• Failure to provide documentation confirming the source of the funds – the tax office may question the legality of the money transferred.
• Unintentionally adding up donations from several years – the limit of 36,120 zł applies to the total of all donations from a single person over a five-year period.

Experts from Firma dla Każdego emphasise that the most important thing is to document financial flows accurately and to retain all correspondence, transfer confirmations and contracts. This forms the basis for safe tax compliance and protection against any potential disputes with the tax authorities.

What about PIT and VAT on donations?

Gifts from parents are not subject to personal income tax (PIT). This follows directly from Article 2(1)(3) of the PIT Act, which exempts from taxation transactions subject to inheritance and gift tax. Funds or assets received in this way do not constitute taxable income, so you do not need to declare them in your annual PIT return.

The exception is where assets received as a gift are sold before the expiry of the time limits specified by law. For example, if you sell a car received as a gift more than six months after acquiring it, you will not pay PIT. If you were to sell it earlier, tax would be due.

In the case of self-employed individuals who transfer assets received as a gift into their business, depreciation write-offs may constitute a tax-deductible expense only if the donor had previously depreciated that asset. Otherwise, the depreciation write-offs cannot be treated as tax-deductible costs. The detailed rules are set out in Article 23(1)(45a)(a) of the PIT Act.

How should a gift for the purchase of a flat or a car be accounted for?

In the case of a donation from parents towards the purchase of a flat, it is essential that the money is first transferred to the child’s account and only then to the developer’s or seller’s account. A direct bank transfer from a parent to a property developer does not qualify for tax relief – this is confirmed by interpretations issued by the National Tax Information Service (KIS) in 2024. If parents wish to gift a car to their child, a written gift agreement is required, and if the value exceeds the threshold, an SD-Z2 declaration must be submitted to the tax office. Additionally, the car must be re-registered with the vehicle registration authority within 30 days.

In the practice of the ‘Accounting Office for Everyone’, clients very often enquire about situations where parents buy a flat on a mortgage and then transfer it to their child as a gift. In such cases, a notarial deed is required, and the gift must be declared to the tax office to avoid tax and any potential issues should the property be sold in the future.

Is a gift from parents subject to division in the event of a divorce?

Under the Family and Guardianship Code, a gift constitutes the personal property of the recipient, regardless of whether the couple has separate property or not. It does not form part of the spouses’ joint property and is not subject to division in the event of divorce. An exception is where the donor has expressly stipulated in the contract that the gift is to form part of the joint property – but this is a rare practice.