Foundation / Endowment Fund

ESTABLISHMENT AND ADMINISTRATION OF A FOUNDATION OR FOUNDATION FUND

What does the term foundation mean?

Think of a foundation or endowment fund as an association of property, i.e. movable, immovable, financial and intangible, for a specific purpose. It is managed by the board of directors and is subject to the control of the supervisory board or the auditor.

The endowment fund is not established for the purpose of doing business, and the use of assets must be governed by the conditions set out in the articles of association or articles of incorporation. It is possible to establish a foundation from assets reaching a value of 20,000 EUR. Foundation assets can be movable and immovable property, securities and cash.

Income from said property is exempt from tax and the foundation can participate in the business of joint stock companies.

With a foundation you protect your investments

The foundation is an excellent tool for asset management, it has legal personality and the assets invested in the foundation are protected by investment protection agreements. With a foundation, you separate the assets from the original founder, but you can manage them.

Another interesting advantage is privacy protection. Property deposited in the endowment fund is separate from the person of the depositor. The foundation is listed as the owner of the property in all registers.

The specific conditions for the management of the foundation may differ, but in general, the profits of the foundation are not subject to taxation and the tax liability does not apply even to the transfer of assets to the foundation. However, beware of one pitfall.

Once you have contributed property to the endowment, it is forever the property of the endowment and will not be returned to the depositor even if the endowment is dissolved.

Advantages of establishing an endowment fund:

• Tax exemption
• The foundation is a legal entity
• Property is protected
• The founder can lead the foundation

Are you looking for the protection of your assets, the optimal tool to manage your assets? Set up a foundation and you will get the legal personality of the foundation as well as high protection of invested property, which will be safely separated from you and your business activities and other possible risks!

How is the foundation established?

The establishment of a foundation or endowment funds subject to a number of regulations which are not easy to navigate.

If you intend to establish a foundation or endowment fund, contact us without hesitation, we will draw up a specific proposal for you and take care of the preparation of the entire process, at the successful end of which a newly established foundation or endowment fund will be created and you will be able to draw benefits from its administration.

When is it appropriate to establish a foundation?

If you own real estate or several real estates intended for rent, own copyrights, have income from intellectual property, establishing a foundation gives you the possibility of making a profit with an exemption from income tax.

The foundation may also own various works of art or copyrights. The foundation is suitable for managing financial assets exceeding 40,000 EUR.

What you need to prepare for setting up a foundation

We will be happy to answer these questions and help you with the foundation and endowment fund as well as with its management in the future.

Cooperation with us pays off. Tax savings can reach interesting amounts. Contact us as soon as possible! Our professional team will take care of everything you need.

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