The introduction of the Family Foundation Act in Poland has given Polish entrepreneurs a new option for asset protection and succession planning. However, the question remains: is it better to establish a family foundation in Poland or in the Principality of Liechtenstein?
Poland – advantages:
- Lower establishment costs
- No need for foreign advisors
- Familiar legal system
- Tax exemptions on certain income
Poland – disadvantages:
- Legal instability and frequent changes
- Already signaled tax law changes within months of enactment
- Judicial system challenges (backlogs, quality concerns)
- Limited track record (new institution)
Liechtenstein – advantages:
- Nearly 100 years of stable foundation law
- Specialized, efficient judiciary
- Strong privacy protections
- International recognition and enforceability
- AAA-rated jurisdiction
- Proven track record in asset protection
Liechtenstein – disadvantages:
- Higher establishment and maintenance costs
- Need for local qualified persons on the foundation council
- Geographic distance
My recommendation
For genuine, long-term asset protection and succession planning – where the primary goal is security and stability – Liechtenstein remains the clear choice. For entrepreneurs seeking primarily domestic tax benefits with modest asset protection, Poland may suffice – but with the caveat that the regulatory environment may change at any time.
As I always tell my clients: a family foundation is a multi-generational decision. Choose the jurisdiction that will still be stable and predictable when your grandchildren need it.
Paweł Osiński
Attorney, expert in family foundations in Poland and Liechtenstein