Austrian Private Foundation Benefits
- Written by: Editor
- Posted: 2017-09-23
The private foundation is a popular alternative to the traditional trust solutions that have long been in use by wealth planners in the country. It is an onshore solution that offers double tax protection and has a medium level of taxation. One of our lawyers in Austria can give you more information about this type of foundation and highlight its benefits.
Opening a private foundation in Austria
The private foundation is a type of investment structure used to preserve property, protect assets from outside influence and provide a wealth fund for family members. It can be established by a natural or a legal person and a notarial deed is used for this purpose. The foundation cannot engage in any trade activities in Austria.
The private foundation can have a nominee founder. This is useful for those investors in Austria who want to remain anonymous. By using a proxy their name will not appear in the foundation’s incorporation documents, which are publicly accessible from the foundation registry.
International wealth planners who are willing to open an Austrian private foundation should know that this type of foundation is not subject to supervision from public authorities. The Austrian court is the only competent authority in this case.
The founder can freely choose the scope and purpose of his private foundation: it can be used for managerial purposes, for assets increase or assets security. The founder and his family can thus benefit from a stable structure for their asset management needs for generations to come.
One of our lawyers in Austria can give you details on the registration of the foundation and how its purpose can be changed or amended. We can also give you details as to asset liability.
Private foundation taxation in Austria
The private foundation in Austria is subject to the corporate income tax, at a rate of 12.5 percent. Investors do benefit from a series of tax exemption, according to the type of income: for example dividend income and/or capital gains from Austrian or from foreign companies.
The provisions of the double tax treaty apply to the private foundation in Austria, making this investment vehicle suitable as an onshore solution for wealth management for foreign investors in the country.
You can contact the experts at our law firm in Austria if you need more details on this type of foundation or on other business structures in the country.