Private foundations

Starting in 1993, it became possible to transfer assets to an ownerless legal structure in Austria. The private foundation has since become a popular form of asset management for high net worth individuals. Its use is mainly indicated in situations where the founder is able to dedicate assets to a predetermined purpose over the long term, and these assets are thus only restricted to that extent.

 

Key benefits of a private foundation:

  • Assets are safeguarded from external influences but still used at one's own discretion
  • Financial security for family members extending over generations thanks to the proceeds of the foundation assets
  • Ensuring business continuity and succession

Private foundations have fiscal advantages in particular for holding purposes, since both domestic and foreign investment income is generally non-taxable in principle and taxation of gains from share disposals can be avoided or deferred in certain cases.

Private foundations allow founders to preserve their assets in a tax-advantaged manner over the generations, whilst also fulfilling the foundation's stated purpose and ensuring the sustainable preservation and continuity of their wealth. If you are considering the idea of starting a foundation or need an auditor for an existing private foundation, get in touch with us.

Services at a glance

  • Consulting during decision-making process on establishing a private foundation
  • Presentation of tax benefits and implications
  • Alternative comparison with foreign foundation structures
  • Advice on establishing a private foundation, especially regarding the deed of foundation
  • Bookkeeping  and compiling annual financial statements and annual tax returns of a private foundation
  • Day-to-day tax consulting for private foundation, foundation board, founder and beneficiaries
  • Effective legal representation in dealings with tax authorities
  • Creating compliance packages for the UBO register
  • Assumption of board chair mandates for private foundations
  • Advice on revocation and dissolution of private foundations
  • Audit

Your contacts

Erik Malle
Erik Malle
Managing Partner, Certified Public Accountant and Tax Advisor
Philip Stagel
Philip Stagel
Managing Partner and Tax Advisor
Karin Eichhorn
Karin Eichhorn
Managing Partner, Certified Public Accountant and Tax Advisor

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