Is a minimum capital required to establish a foundation?

No minimum in the law, but in practice: €40,000.

Is state approval required for the establishment of a foundation?

No

Are economic activities (related/unrelated to the public-benefit purpose) permitted?

Yes, related and unrelated.

Is remuneration of board members allowed in civil and/or tax law?

No, for tax-exempt organisations (this is the tax authorities’ view and can vary from canton to canton).

Do foundations have to produce annual reports? (e.g. activity report, financial report, tax return, other)

Yes. If the foundation’s activity is not limited to a single canton: Annual accounts/ financial report and activity report and audit report, as required; list of the board members, board’s approval of the
annual reports. Foundations operating at cantonal level: cantonal law applies. Tax return.

Is external audit required?

Yes, except family or ecclesiastical foundations, or small foundations that do not raise money from the public and receive an exemption from the supervisory authority.

Does civil and/or tax law require a foundation to spend (a certain amount of) its income, within a certain period of time (e.g. within the next financial year)?

No

Do public-benefit foundations pay income tax on received grants and donations?

No

Is a public-benefit foundation’s income from asset administration taxed?

No

Is a public-benefit foundation’s income from economic activities taxed?

No, provided the activities are purpose related or ancillary.



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