The recognition of a foundation requires several aspects in both civil and tax law. Founders must first and foremost comply with the prescribed procedure, in the course of which recognition by the respective competent supervision takes place. From a tax point of view, foundations based outside Germany must pay particular attention to the regulations of the Foreign Tax Act (AStG)!
1. Recognition of the Foundation by the competent supervisory authority
In order for a foundation to have legal capacity, i.e. to be able to participate in legal transactions, the civil law requirements must be met. They are to be found in §§ 80 further the following BGB and can be summarized with regard to the recognition of a foundation as follows:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.