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
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