Family Foundation – is it profitable with a 2m PLN turnover?
Most entrepreneurs from Zabrze I talk to believe that a family foundation is a topic for large factory owners. They think you need hundreds of millions in your account for it to make sense. The truth is that at a turnover of 2.1 million PLN per year, tax benefits and asset security become very real.
Profitability threshold: Numbers don't lie
I often hear the question: 'Mr. Dariusz, with my 2 million turnover, is it worth bothering with a notary?'. The answer is: yes, if your net profit exceeds 156,000 PLN per year. With smaller amounts, the bureaucracy can indeed be tiring, but above that limit, the math starts working in your favor. A family foundation is not a way to escape taxes, but to intelligently manage what you've already earned. No fluff – it's simply a better wallet for your money.
Last year, we helped 14 workshop and warehouse owners from around Gliwice and Zabrze switch to this model. One of them, running a parts store, saved 28,400 PLN in the first 7 months just because he didn't have to pay tax when selling a company property he contributed to the foundation. This money, instead of going to the office, went to the purchase of a new tow truck. Assets stay in your hands, not in the officials' spreadsheets.
The foundation pays for itself in less than 4 months if your net profit exceeds 156,000 PLN per year.
Security in case of family argument
In family companies, the hardest part is not the taxes, but the Sunday dinners. As children grow up, different visions for development emerge. One son wants to invest in machinery, the other daughter prefers to rent out the hall and have peace of mind. A family foundation creates clear rules of the game. The assets are one, and the rules for their distribution are written in the statute while everyone is still living in harmony. This blocks the possibility of squandering the achievements of 23 years of work in one evening through an ill-considered decision by one of the heirs.
A foundation's statute is like your home's constitution. You can write there that grandchildren will receive money for university only if they choose a specific major, or that company shares are non-transferable for the next 14 years. In Zabrze, we have many traditional companies that fell apart after the founder's death because there was no foundation. We ensure your vision survives longer than you do. This is true asset protection, not just numbers in Excel.
Capital gains taxes
The foundation's greatest asset is the lack of income tax on the profits it generates. If the foundation has stocks, shares in other companies, or rents out real estate, it does not pay 19% CIT tax on it. This is a massive financial leverage. Imagine that every year you reinvest those 19% more funds. After 9 years, the difference in capital is colossal. For a small company with a turnover of 2 million PLN, it's often the difference between buying one machine and an entire machine park.
A 15% tax only appears when the foundation pays out money to you or your loved ones (beneficiaries). But beware: payments for maintenance or education for the immediate family can be exempt from additional burdens under specific conditions. This needs to be well-planned at the very beginning. There is no room for errors here, which is why we check every zloty twice before signing the statute at the notary.
Reinvesting profits without the 19% tax is the strongest argument for a foundation.
Costs no one talks about
I'll be honest: a foundation also comes with responsibilities. Every 4 years, an asset audit must be carried out. It costs between 3,200 PLN and 5,400 PLN, depending on how many properties you own. Full accounting must be kept, which is more expensive than flat-rate or the revenue and expense ledger. If someone promises you that a foundation is free and maintenance-free, they are lying. We prefer to be honest from the start. A foundation is a tool for those who want to build for generations, not those looking for quick tricks for this month.
Despite these costs, among the 47 active clients we serve regarding succession, not a single one decided to return to the previous model. Why? Because the peace of mind that your shares are safe from creditors is worth more than those few thousand zlotys a year for an audit. At Reliability and Vision, we watch the deadlines so you can focus on production or trade. By the way, it's best to plan the first audit after just 3 years to avoid a rush.
How to start in Zabrze?
The process is not as complicated as they write on the internet. We start with a 45-minute conversation during which we list your assets: house, company shares, maybe those two apartments for rent on Wolności St. Then we prepare the draft statute. This usually takes us 12 to 18 business days. We don't do copy-paste. Every family has a different situation and different fears that we must legally secure.
When the statute is ready, we go to the notary together. The entire procedure from the first conversation to entry in the register usually takes 3-5 months. During this time, you run your business as normal. We handle the paperwork, and you prepare the family for the new rules. Remember, a foundation is not a prison for money; it's a safe to which only you and your loved ones have keys on clear terms.
