{"id":2048,"date":"2024-01-05T16:03:59","date_gmt":"2024-01-05T15:03:59","guid":{"rendered":"https:\/\/gntreuhand.com\/advantages-of-a-foundation\/"},"modified":"2024-04-25T15:04:57","modified_gmt":"2024-04-25T13:04:57","slug":"advantages-of-a-foundation","status":"publish","type":"page","link":"https:\/\/gntreuhand.com\/en\/competences\/setting-up-of-structures\/advantages-of-a-foundation\/","title":{"rendered":"Advantages of a foundation"},"content":{"rendered":"
A foundation has various advantages which can be of use to a founder. Careful succession planning, the preservation of one’s own life work, and the securing of assets are just a few examples of what a foundation can be used for.<\/p>\n\n<\/div>\n<\/div>\n<\/div>
On the one hand, Liechtenstein foundation law provides founders with many liberties; on the other hand, assets can be protected from access by unauthorised parties through strict separation from the founder. <\/p>\n\n\n\n
For example, there are no restrictions under Liechtenstein law to selecting the beneficiaries of a foundation or of an establishment. It is possible, for example, to appoint oneself, relatives, friends, partners, and\/or legal entities as beneficiaries.<\/p>\n\n\n\n
A foundation can be formed with a formation capital of as little as CHF\/EUR\/USD 30,000.00. In terms of taxation, foundations are generally subject to 12.5% of income tax, with a minimum income tax of CHF 1,800.00 per year. Under certain circumstances, recognition as a private asset structure (PVS) can be applied for from the Liechtenstein Fiscal Authority. A PVS is subject to an annual flat tax of CHF 1,800.00. . Furthermore, in Liechtenstein there are neither taxes at source on distributions of profits nor any taxation of dividends or capital gains for equity papers. In addition, there is neither gift tax nor inheritance tax in Liechtenstein tax law. Value added tax, stamp duty, and sales tax are handled pursuant to Swiss law.<\/p>\n\n\n\n
Another advantage of Liechtenstein as the location for a foundation is political stability and the fact that Liechtenstein foundation law has been in place for almost 100 years. As a result of the long history, there is a high degree of professionalism and expert knowledge in the trust industry, the financial industry, and with courts and various public authorities. The fact that public authorities work fast is another advantage.<\/p>\n\n\n\n
As a result of Liechtenstein’s membership to the European Economic Area (EEA), Liechtenstein foundations are generally recognised in the EU.<\/p>\n\n\n\n
Foundations may also have an exclusively charitable purpose. Nevertheless, in contrast to a lump-sum large donation to an international charitable organisation, the founder may state concrete wishes as to how and to whom donations are to be made. In addition, there is the possibility to adjust these wishes to the founder’s intentions as these change over time. Finally, the founder may personally take a supervisory function in the foundation if and as long as desired.<\/p>\n\n\n\n
Finally, Liechtenstein’s membership to the EEA offers the possibility that donations to a charitable foundation that is officially recognised as a charitable organisation in Liechtenstein \u2013 also in terms of taxation \u2013 are tax-deductible abroad. However, this should be checked with a tax lawyer at the donor’s tax domicile before making the donation.<\/p>\n\n<\/div>\n<\/div>\n<\/div>