Judgment of the Provincial Administrative Court in Gdańsk of June 19, 2024, I SA/Gd 219/24: Short-term rental carried out by a Polish Family Foundation

Abstract A family foundation regulated in the Polish legal system by the Act of January 26, 2023, has the right to conduct business activities in accordance with the catalogue specified by the legislator in Article 5 of the Family Foundation Act. Importantly, the statutes of a family foundation cannot modify this list in any way. Pursuant to Article 5 of the Family Foundation Act, a family foundation may conduct business activities within the meaning of Article 3 of the Act of March 6, 2018—Entrepreneurs Law, including, among others, the leasing of real estate. If a family foundation exceeds the scope of permitted economic activity, it will be subject to a punitive corporate income tax rate of as much as 25%. The text in question addresses the issue of short-term rentals carried out by a Polish family foundation. This issue raises numerous doubts in academia and practice, as Polish tax authorities do not have a uniform position with the provincial administrative courts in this regard.