Will any European Tax authorities tolerate an offshore foundation

[kyler565]

I have an offshore foundation and I'm considering moving. Wondering if its possible to use the foundation in Spain or another European country(Italy, Greece, Russia) . I know Spain has horrible taxes but if holding a portion of assets in a foundation and not in my name can reduce the tax burden it could work for me

 

[Martin Everson]

kyler565 said:
Wondering if its possible to use the foundation in Spain or another European country(Italy, Greece, Russia) .
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I don't know off head of any European country that will not tolerate an offshore foundation. Most just have different tax treatment from transparent for tax purposes to heavily taxed.

kyler565 said:
I know Spain has horrible taxes but if holding a portion of assets in a foundation and not in my name can reduce the tax burden it could work for me
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If you have any sort of money then the word "Spain" should not be in your vocabulary other than when used with the word "holiday" or "exit". Spain makes Canada look like a tax haven.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Gediminas]

kyler565 said:
I have an offshore foundation and I'm considering moving. Wondering if its possible to use the foundation in Spain or another European country(Italy, Greece, Russia) . I know Spain has horrible taxes but if holding a portion of assets in a foundation and not in my name can reduce the tax burden it could work for me
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Hey,

Lichtenstein or the Netherlands are probably the most popular countries to set up the foundation in EEA.

Dutch foundation (Stichting) is a legal entity and can own assets worldwide.

Foundation does not need to submit FS, it does not pay corporate income tax, however, if it starts economic activities, it might become taxable as any Dutch entity.

Eventually, taxation depends on many factors such as your residency, underlying assets, and their location.

Generally speaking, a foundation gives you more privacy and asset protection (if properly structured). This is especially relevant to the Lichtenstein Foundation, since Lichtenstein is not a part of the Lugano convention, it means that local courts do not recognize foreign court decisions.

It is more expensive to set up and maintain but might give much better asset protection in the long run in comparison to Dutch Stichting.

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[Jerry1911]

kyler565 said:
I have an offshore foundation and I'm considering moving. Wondering if its possible to use the foundation in Spain or another European country(Italy, Greece, Russia) . I know Spain has horrible taxes but if holding a portion of assets in a foundation and not in my name can reduce the tax burden it could work for me
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You'll probably have to contact a local tax advisor and obtain a tax ruling. Chances are it will most likely be treated as tax transparent. Look into LexisNexis private client guides as well.

Gediminas said:
It is more expensive to set up and maintain but might give much better asset protection in the long run in comparison to Dutch Stichting.
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How much would it approximately cost to set up a STAK for the purpose of holding shares in a Cyprus company? Is it usually the STAK which sets up the company or are the shares transferred to the STAK afterwards?

Last edited: Jan 19, 2024

 

[Mr Gus]

kyler565 said:
I have an offshore foundation and I'm considering moving. Wondering if its possible to use the foundation in Spain or another European country(Italy, Greece, Russia) . I know Spain has horrible taxes but if holding a portion of assets in a foundation and not in my name can reduce the tax burden it could work for me
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Well all of the non-dom countries could work.

In the Netherlands there are rules about this: Trust income and Dutch tax implications - Broadstreet