"The Charitable Liechtenstein Foundation"

Charitable foundations have a strong tradition in Liechtenstein. They are suited to long-term, impact-oriented engagement in education, science, culture, environmental protection and humanitarian projects. This brochure provides a compact overview of the legal framework, establishment, organisation and supervision (STIFA) as well as tax aspects. It aims to give founders, beneficiaries and professionals a reliable basis for planning and implementation.

A charitable foundation is a legally independent pool of assets dedicated to a specific purpose. It can be established inter vivos or mortis causa; the minimum capital is CHF/EUR/USD 30,000. The supreme body is the board of foundation; an auditor generally has to be appointed. STIFA supervises the purpose-compliant use of assets and is regarded internationally as a best-practice model. Tax exemption is possible if the statutory requirements are met. Liechtenstein also permits funding of up to 100 percent abroad. Alongside the foundation, Liechtenstein recognises the charitable trust; it is not a legal person and – unlike a foundation – is not subject to STIFA oversight.

Topics in the publication

• Nature and characteristics of the charitable foundation
• Concept of charity and foundation purpose
• Establishment and capitalisation
• Organisation, governance and STIFA supervision
• Tax exemption and international grant-making practice
• Comparison: foundation vs. charitable trust (oversight, use cases)
• From idea to operating foundation: process and practical tips