Establishment of charitable foundations or family foundations


Germany

Our information in the English language concerning establishment of charitable foundations or family foundations in Germany is currently still being developed. We kindly ask for your understanding. Therefore, please do not hesitate to contact us directly with your queries and concerns. For over ten years now, we have been establishing foundations for our clients. With us you are always competently advised and well represented. We look forward to receiving your message or call!


Austria

Our information in the English language concerning establishment of charitable foundations or family foundations in Austria is currently still being developed. We kindly ask for your understanding. Therefore, please do not hesitate to contact us directly with your queries and concerns. For over ten years now, we have been establishing foundations for our clients. With us you are always competently advised and well represented. We look forward to receiving your message or call!


Liechtenstein

There are various reasons for establishment of a foundation

If the charity is the focus of public interest, the idea of the establishment of a charitable foundation is often considered. If the focus is rather the benefit of family members, establishment of a family foundation might be a good option. Family foundations are subject to ordinary income tax. Charitable foundations can be exempted on application to the competent tax authorities.

  1. Concept
  2. Charitable foundation
  3. Family foundation
  4. Foundation law and inheritance law – a potential source of conflict

1. Concept

The founder establishes an organisation that uses the foundation assets to pursue the desired purpose of the foundation. The foundation is therefore an independent pool of assets in the form of a legal person without an owner.

2. Charitable foundation

2.1 Charitable status

In Liechtenstein, recognition of the establishment of a foundation as a charitable foundation takes place on request to the foundation supervisory authority. Decisive in this process are the statutes, the purpose of the foundation (which must be unwavering in its charitable status), and the available assets. The Liechtenstein tax authorities are responsible for granting tax exemption. For a charitable foundation to benefit from tax exemption, its purpose must be in the public interest. Some examples are:

  • Art, education, social welfare 
  • Promotion of human rights 
  • Environmental protection, development aid, etc.

A Liechtenstein foundation can also support foreign beneficiaries and charitable institutions and organisations. Our lawyers and tax consultants will review your foundation project and help achieve the purpose of your foundation within the most favourable tax framework.

2.2 Taxation of donations to charitable foundations

Donations to charitable foundations are also tax deductible. If you want to donate money to a foundation, our lawyers and tax advisers will advise you on the best possible underlying conditions in terms of the donation amount and when the donation is made.

3. Family foundation

Under Liechtenstein law, the purpose of a family foundation is to devote a specific asset to provide support for one or several family members. A relationship in the form of marriage, parenthood, adoption or other family connection must exist between the founder and the beneficiary. The purpose of the support could be to cover training costs, health care for a family member, or another similar purpose.

4. Foundation law and inheritance law – a potential source of conflict

The establishment of a foundation can serve as a tool for the settlement of succession issues: foundations can be established during one’s lifetime, or by means of a will or testamentary contract. A foundation and a bequest are different legal institutions and the meaning and benefits of them have to be considered very carefully. It should be further noted that matrimonial rights and the regulations relating to wills and succession must be absolutely respected and cannot be bypassed. We will draw on our experience to identify any possible conflicts between foundation law, matrimonial rights and succession law, helping you choose the best instruments for implementing your wishes.

The expert lawyers and tax consultants at the Viehbacher law firm will advise you on establishing and managing foundations. We look forward to hearing from you!


Switzerland

Our information in the English language concerning establishment of charitable foundations or family foundations in Switzerland is currently still being developed. We kindly ask for your understanding. Therefore, please do not hesitate to contact us directly with your queries and concerns. For over ten years now, we have been establishing foundations for our clients. With us you are always competently advised and well represented. We look forward to receiving your message or call!


Italy

Our information in the English language concerning establishment of charitable foundations or family foundations in Italy is currently still being developed. We kindly ask for your understanding. Therefore, please do not hesitate to contact us directly with your queries and concerns. For over ten years now, we have been establishing foundations for our clients. With us you are always competently advised and well represented. We look forward to receiving your message or call!

Your contact persons

Michaela Berger, Steuerexpertin, Treuhänderin mit eidg. Fachausweis

» Michaela Berger

Dipl.-Kfm., Tax Consultant, Specialist Advisor for International Tax Law

email: m.berger@viehbacher.com

Max Gross, LL.M., zugelassener Treuhänder und Steuerexperte

» Max Gross

LL.M.; Certified Trustee and Tax Consultant

email: m.gross@viehbacher.com

Dr. Christian Presoly, Rechtsanwalt

» Dr. Christian Presoly

Lawyer

email: c.presoly@viehbacher.com

Lic. iur. Daniel R. Tschikof, LL.M., Rechtsanwalt

» Lic. iur. Daniel R. Tschikof

LL.M., Lawyer

email: d.tschikof@viehbacher.com

Johannes N. Viehbacher, Rechtsanwalt, Fachanwalt für Internationales Wirtschaftsrecht

» Johannes N. Viehbacher

Lawyer, Specialist solicitor for international commercial law

email: j.viehbacher@viehbacher.com

 

 

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