Private Foundations in Germany

WINHELLER Attorneys at Law specializes in German foundation law. We will evaluate whether starting a foundation is the right choice for you and, if so, will tailor the foundation to your personal situation. If you choose to form a foundation in another country, we will work closely with colleagues in that country.

In particular, we can help with the following:

• Deciding whether creating a charitable foundation makes sense, compared with alternative wealth disposition options,
• Creating a foundation (charitable foundation, family foundation, business foundation, foundation trust, mixed forms, etc.),
• Choosing the right location (German State, Germany or in a foreign country),
• Questions on German foundation law and on regulatory agencies in German states,
• Taking advantage of all the tax benefits of a foundation, with regard to income tax, gift tax, and inheritance tax issues,
• Other special tax considerations relating to charitable organizations (for example, substitute inheritance tax, withholding tax, taxability of dividends, taxability of business activities, sales tax discounts, etc.),
• Choosing a strategy for reducing or eliminating the so-called substitute inheritance tax,
• The extent to which a foundation is a suitable vehicle for business succession,
• Questions on fundraising and endowment contributions,
• All questions on German foundation law and German tax law that arise in relation to the day-to-day operation of the foundation, and
• The choice of a profitable yet legally sound investment strategy, as well as the administration and protection of the foundation's assets.

We consider ourselves a one-stop shop for foundations. In addition to legal and tax advise, we offer further services; either directly or from cooperating experts. Our accountants can, for instance, help you set up an accounting system, produce yearly reports, and generate grant and donation documentations – all in compliance with German foundation law and nonprofit tax law. From a financial perspective, we will be happy to refer you to fundraising specialists who will work closely with you on issues such as soliciting donations and other third-party funding for your foundation.