Foundations - Safe tax advice

Family Foundation, Charitable foundation, Legally responsible foundation, Non-perpetual trust


Would you like to contribute your assets to a charitable foundation? Or are you interested in alternatives to conventional foundations, such as the Family Foundation? Which secures the preservation of your assets permanently? 

From what amount is a foundation useful? What advantages does a foundation offer? What should you consider when founding a foundation? You will find out on this page.


More than 22,000 foundations with legal capacity exist in Germany and over two-thirds have a foundation capital of less than € 1 million. To found a foundation, there is no specific minimum amount that needs to be turned to a foundation. However, the lasting and sustainable fulfillment of the foundation's purpose must be secured (§ 80 Abs. 2 BGB). An exception is the consumption foundation. The foundation and subsequent endowments are not subject to income tax. However, they may be subject to inheritance and gift tax.

Non-Profit or not charitable?

Foundation purpose is crucial!

The most common form of the foundation is the charitable foundation. If a foundation pursues a charitable purpose, it receives the status of charitable status and related tax benefits after the examination by the foundation authority and the approval of the tax office. Non-profit foundations may be institutions such. B. promote a cultural institution or cancer aid or even act themselves. 


Private-benefit foundations, such as the Family Foundation, do not benefit from the tax exemption. Their purpose is solely to secure wealth and provide for the family and thus does not serve the common good. The benefits to the family to secure their care does not diminish the income of the Foundation and is therefore not tax-privileged. They are to be seen as distributions from corporations. How you still benefit from tax advantages read here.


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