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Buying a flat for your parents in Poland with a mortgage: who borrows and who owns

An adult child buys a flat for older parents in Poland: a mortgage in your name or theirs, free use or a right of residence, instalments as a gift and the SD-Z2 form, PCC and inheritance with siblings.

KredytPolska editorial team
Updated:

In short

Most often the child takes the mortgage, owns the flat and lets the parents live there free of charge or with a registered right of residence. If the parents are to own the flat, their age shortens the loan, and instalments paid by the child are a gift: tax-free, but the money should go to the parent’s account and above 36,120 zł in 5 years the parent must file SD-Z2. The parents’ flat later goes into their estate, so without a will the child who paid for it shares it with siblings.

Option 1: you borrow and you own

For the bank it is a normal purchase by you, and the loan term depends on your age, not your parents’. If you already own a flat, the bank deducts the first instalment from your borrowing capacity, and a second-hand flat is subject to 2% PCC tax. Your parents live there under a loan for use (użyczenie), which the Civil Code defines as permission to use a thing free of charge for a fixed or indefinite time (art. 710). It is simple but weak: it is not in the land register and does not protect your parents against a new owner.

Option 2: the same, with a right of residence

A personal right of residence (służebność mieszkania) entered in the land register protects your parents for life against any owner, including your heirs. The downside is yours: it lowers the value of the flat for the bank and a buyer, and the lending bank usually wants its mortgage first or must consent.

Option 3: the parents own, you join the loan

Your income raises the borrowing capacity, but many banks set the end of the loan by the age of the oldest borrower. As a co-borrower you are jointly liable for the whole debt (art. 366 of the Civil Code). Paying a joint loan is paying your own debt, not a gift: the tax authority said so in a ruling of 2 July 2026 about spouses.

Option 4: the parents borrow, you pay the instalments

Each payment from you is a gift. Parents are closest family, so it is tax-free (art. 4a of the Inheritance and Gift Tax Act), but the money must be documented by a transfer to the parent’s account, and once your gifts to one parent exceed 36,120 zł within 5 years, the parent has 6 months to file SD-Z2. At 2,000 zł a month the threshold is crossed with the 19th payment.

Inheritance: the trap of options 3 and 4

A flat owned by the parents goes into their estate. Without a will, children inherit in equal parts, alongside the deceased’s spouse (art. 931 § 1 of the Civil Code). If a daughter paid for a 450,000 zł flat and there are three children, she inherits a share worth 150,000 zł. Gifts to the parents do not give her a larger share later. A will, a share in the flat for the child or ownership on the child’s side with a right of residence solve this.

The full description in Polish: Mieszkanie dla rodziców na kredyt.

Frequently asked questions

Can I take a mortgage on a flat my parents will live in?

Yes. For the bank it is a normal purchase by you. If you already own a flat, the bank counts the first loan and a second-hand purchase is subject to 2% PCC.

If I pay my parents’ mortgage instalments, is it a gift?

Yes, if only the parents are borrowers. It is tax-free, but transfer the money to the parent’s account and file SD-Z2 within 6 months once gifts from you exceed 36,120 zł in 5 years.

Who inherits the parents’ flat that I paid for?

Without a will, children inherit in equal parts alongside the deceased’s spouse, so you share it with your siblings unless your parents make a will or you own a share.

Sources

  1. Civil Code, art. 301, 366, 710, 931 (Polish)
  2. Inheritance and Gift Tax Act, art. 4a (Polish)
  3. podatki.gov.pl: gifts in the closest family, tax exemption (Polish)
This guide describes general rules and typical bank practice as of October 2026. Details

It is not legal or tax advice and not a bank offer. Each bank sets its own criteria, and the lending decision is always made by the bank.

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