Yesterday, the Commission presented a proposal for a regulation on a statute for a European Foundation ("FE").
The Commission's objective behind this proposed statute is to achieve a European harmonized regime for charitable foundations operating cross-border in order to facilitate charitable foundation`s establishment and operation throughout the EU.
For these aims, the proposal provides a new, additional and voluntary legal instrument to allow any natural or legal persons establishing a FE under the same legal conditions across the EU.
The statute focuses exclusively on taxexempt foundations. At the time of registration in one Member state, the FE must prove public benefit purposes, a crossborder component of operation and a share capital of at least 25,000 EUR. Upon registration the EF shall receive legal personality and full legal capacity in all Member States.
FEs shall benefit from the same preferential tax treatments which the Member States grant to domestic public benefit purpose entities.
The Commission`s proposal will be shared with the European Parliament and the Counsel of Ministers for consideration and adoption.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.