Is the Polish Inheritance and Gift Tax Incompatible with the Free Movement of Capital in Relation to Third Countries?

This article examines whether the Polish inheritance and gift tax is compatible with the free movement of capital in relation to third countries. The analysis covers two provisions: the tax allowance and the personal tax exemption. It is argued that the second provision is incompatible with the free movement of capital in third-country scenarios, since the tax benefit, which can result in factual non-taxation in Poland, is denied to third-country residents who have third-country nationality.