The charitable foundation is a significant instrument within Liechtenstein law. As a legal entity, a foundation serves the long-term realization of a specific purpose determined by the donor. The foundation’s assets are separated from the founder’s private assets, ensuring a high degree of legal certainty.

Liechtenstein offers an attractive legal framework for the establishment and management of foundations, making it a competitive location in the international foundation sector.

This blog post provides an initial overview of the charitable foundation in Liechtenstein:

1. Types of foundations

In Liechtenstein, foundations are categorized as either private-benefit or public-benefit. Private-benefit foundations, such as family foundations, primarily serve to protect and manage family wealth. In contrast, charitable foundations aim to promote the common good, whether in charitable, religious, humanitarian, or cultural fields. A unique aspect of Liechtenstein law is the possibility of establishing a mixed charitable foundation, which can pursue both public-benefit and private-benefit purposes.

2. Establishment and registration of charitable foundations

A foundation in Liechtenstein is established through a written foundation deed, which must be signed and notarized by the founder. Alternatively, a foundation can also be established through a will or inheritance contract.

Unlike private-benefit foundations (such as family foundations), charitable foundations are required to be registered in the Commercial Register. The registration must include information on the foundation’s name, purpose, board, and auditor. However, the founder and beneficiaries do not need to be disclosed in the Commercial Register.

3. Supervision and audit

Charitable foundations are subject to supervision by the Liechtenstein Foundation Supervisory Authority (STIFA). STIFA ensures that the foundation’s assets are managed and used according to the specified purpose.

Another control body is the auditor, which annually reviews whether the foundation’s assets are being properly utilized. Under certain conditions, a foundation may be exempted from the requirement to appoint an audit office.

4. Influence of the founder

Liechtenstein foundation law allows the founder to exercise significant influence over the foundation they establish. For example, the founder may manage the foundation themselves (alongside a trustee) as a member of the foundation board or reserve the right to revoke the foundation.

However, these extensive founders’ rights have legal and tax implications that should be carefully examined when establishing a charitable foundation.

5. Conclusion

Liechtenstein foundation law enables the establishment of charitable foundations that exclusively pursue public, charitable, or cultural purposes. Thanks to the flexibility of Liechtenstein foundation law, founders can set specific goals and conditions to ensure that their philanthropic intentions are fulfilled across generations.

We are happy to advise you on the structuring and establishment of your charitable foundation to ensure that these goals are met.

Start with us now and contact us at office@isp.law or use our fully automated booking tool to make an appointment directly for an initial consultation at www.isp.law/termin-buchen/. We support you in establishing your charitable foundation.