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]

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.

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 look︀ like a tax haven.

 

[Gediminas]

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). This︂ is especially relevant to the Lichtenstein Foundation, since Lichtenstein is not a part of the︃ Lugano convention, it means that local courts do not recognize foreign court decisions.

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

 

[Jerry1911]

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.
How much would it approximately cost to set up︂ a STAK for the purpose of holding shares in a Cyprus company? Is it usually︃ the STAK which sets up the company or are the shares transferred to the STAK︄ afterwards?

 

[Mr Gus]

Well all of the non-dom countries could work.

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