Structures Switzerland
Charitable foundations in Switzerland
Updated: · Leutrim Miftaraj, FLIORE · Editorial standards · Deutsche Fassung
Short answer
A charitable foundation dedicates assets permanently to a public-interest purpose and, if the requirements are met, can be exempt from profit and capital tax (Art. 56 let. g Federal Direct Tax Act). Donations are deductible at federal level up to 20 per cent of net income. It is under state supervision, usually needs an auditor and differs from a family foundation, which may serve only family members.
Charitable or family foundation?
A family foundation serves members of a particular family and may be used only for education, endowment, support or similar purposes; it is not tax-exempt and not under supervision. A charitable foundation serves the public good, for example education, culture, research or social causes. Family members may not be beneficiaries, but they can sit on the foundation board.
Requirements for tax exemption
- A purpose in the public interest, not limited to a closed circle of persons.
- Altruism: the foundation pursues no economic interests of its own, and its bodies serve the purpose.
- Irrevocable dedication of the assets; on dissolution they pass to an institution with the same purpose.
- Actual pursuit of the purpose, demonstrated by activity and grants.
Supervision and audit
Charitable foundations are supervised: by the Federal Foundation Supervisory Authority where their activities are national or international, otherwise by the cantonal authority. They submit an annual report and accounts every year. An auditor is generally required (Art. 83b Swiss Civil Code); small foundations can be exempted on application.
Reforms since 2024
With the revision of foundation law in force since 1 January 2024, the founder can reserve not only changes of purpose but also changes of organisation. Minor amendments to the foundation deed are easier, and the supervisory complaint is expressly regulated: beneficiaries, creditors, founders, co-founders and former and current members of the foundation board with an interest in administration that complies with the law and the deed can complain to the supervisory authority about acts and omissions of the foundation's bodies (Art. 84 para. 3 Swiss Civil Code).
Setting one up step by step
- Define purpose, assets and scope of activity.
- Establish the foundation deed by public deed or by disposition upon death.
- Appoint the foundation board, adopt regulations, elect the auditor.
- Register in the commercial register and come under supervision.
- Apply for tax exemption with the articles and an activity plan.
In FLIORE
FLIORE manages the charitable foundation as a separate mandate with its board, assets, grants and documents. Supervisory deadlines appear in the compliance calendar, and the report to the foundation board can be prepared from the same data.
At a glance
| Tax exemption | Art. 56 let. g Federal Direct Tax Act and cantonal law |
|---|---|
| Federal donation deduction | Up to 20 per cent of net income or net profit |
| Supervision | Federal or cantonal foundation supervisory authority |
| Foundation law reform | In force since 1 January 2024 |
Frequently asked questions
May family members sit on the foundation board?
Yes. They may not be beneficiaries, and any remuneration must remain reasonable, otherwise tax exemption is at risk.
How large must the foundation's assets be?
The law sets no minimum. The supervisory authority does, however, require assets that allow the purpose to be fulfilled over time.
Can the foundation be active abroad?
Yes, activities abroad can also be charitable if they are in the public interest and can be demonstrated.
What is the Swiss Foundation Code?
A guide to good foundation governance published by the association SwissFoundations. It is not binding but is applied by many foundations.
Sources
- Swiss Civil Code (ZGB, SR 210) – Fedlex
- Federal Act on Direct Federal Taxation (DBG, SR 642.11) – Fedlex
- Federal Foundation Supervisory Authority
- SwissFoundations – Swiss Foundation Code
This page provides orientation and does not replace legal or tax advice. The cited legal sources in their applicable version are authoritative.
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