Charitable foundations in Switzerland: formation, supervision and tax exemption

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Switzerland is home to thousands of charitable foundations, many of them established by international families who want their philanthropy to rest on a stable, neutral and well-regulated base. A Swiss foundation can support education, health, research, culture or development anywhere in the world, it can be exempt from tax, and donations to it can be deducted by Swiss donors. Founders from Asia, the Middle East, Africa and Latin America should understand how a foundation is set up, who supervises it and what they can reserve for themselves.

Formation

A foundation under Articles 80 et seq. of the Civil Code is an independent legal entity whose assets are dedicated to a particular purpose. It is established by a public deed or by a will, it is entered in the commercial register, and from then on it belongs to no one: neither the founder nor the board members own it. The deed of foundation sets out the purpose, the initial assets and the basic organisation, usually supplemented by regulations that the board can adapt more easily.

There is no statutory minimum capital, but the supervisory authority will check that the assets are sufficient for the purpose; in practice a foundation should have at least CHF 50,000 and considerably more if it is to carry out its purpose from the income on its assets.

Supervision

Charitable foundations are supervised by the state. A foundation whose purpose extends beyond one canton, in particular an international purpose, is supervised by the Federal Supervisory Authority for Foundations; others by the supervisory authority of the canton. The authority reviews each year whether the foundation's assets are used in accordance with its purpose, receives the annual report and the audited accounts, and can intervene if the board fails in its duties.

Founder's rights

Since 1 January 2024 the founder can reserve in the deed of foundation the right to change not only the purpose but also the organisation of the foundation, provided that at least ten years have passed since the foundation was established or the last change was made. This gives founders more flexibility than before to adapt their foundation to changing needs during their lifetime.

Tax exemption and deductions

A foundation that pursues a public-benefit purpose exclusively and irrevocably can be exempt from profit and capital tax (Article 56 letter g of the Federal Direct Tax Act and the corresponding cantonal rules). The purpose must serve the general public, not a closed circle of persons such as the founder's family, and the foundation's organs must work largely on a voluntary basis. The exemption is granted by the cantonal tax authority on application, and it is advisable to agree the deed of foundation with the authority before the foundation is established.

Swiss-resident donors can deduct donations to tax-exempt foundations of up to 20 per cent of their net income for the federal income tax, and most cantons allow a similar deduction. Companies can deduct donations of up to 20 per cent of their net profit.

Family foundations and alternatives

A Swiss family foundation may only be used to cover the costs of education, establishment in life and support of family members (Article 335 of the Civil Code), so it is not a vehicle for holding family wealth in general. Families who want to combine private and charitable purposes often use a Liechtenstein foundation or a trust, as explained in the articles on Liechtenstein structures and offshore trusts and foundations.

How Ressos Legal helps

I advise founders and families on setting up charitable foundations in Switzerland, draft deeds of foundation and regulations, obtain the tax exemption and the approval of the supervisory authority, and advise foundation boards on governance and investment. Contact me for a first conversation.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2026.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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