Family foundation: At what point is it worthwhile?

Save taxes, optimize and design, but when is it worth it in a family foundation?

• From when is the foundation worthwhile? Only from 1 million equity capital, so that costs of the foundation and yield are really worthwhile
• Before preferring to work in a corporation (so-called Immobilien GmbH or vermögensverwaltende GmbH, GmbH und Co. KG, etc.), here you will find all legal forms in Germany

Overview: This is what you will learn in the guide

7 aspects to save taxes with the creation of a family foundation.

Take advantage of tax benefits: How you can benefit from a family foundation

You want to optimize your financial situation and save taxes? A family foundation could be the solution. But did you know that you benefit from tax advantages not just once, but several times over? In this article, we will show you how to take advantage of these benefits to reduce your tax burden and secure your assets for future generations.

Multiple tax benefits when establishing a family foundation

When you set up a family foundation, you can benefit from tax advantages in several ways. First of all, you can deduct the transferred capital as a special expense from your taxable income. Individuals have the opportunity to deduct up to 1 million euros within 10 years, while married couples can deduct up to 2 million euros. In addition, you can donate further assets to the foundation and also deduct these donations up to 20 percent of your income as a special expense.

Only 15% corporate income tax (rental income)

Once your assets are in your foundation, you can use and invest the assets you have.

Here’s the kicker. A foundation is subject to corporate income tax. So you pay only 15% corporate income tax instead of trade tax.

You only pay trade tax with a family foundation if it is commercial. However, the mere purchase, management and holding of real estate is not commercial. You are only putting your assets to work.

Even your rental income is now subject to corporate income tax at only 15%.

Real estate transfer to a foundation

Transferring real estate to a foundation also provides an effective asset protection mechanism. By transferring your real estate to a foundation, it is legally separated from your personal assets. This protects them from potential creditors or other financial risks. A family foundation can thus be a valuable security measure to protect your real estate assets from unforeseen events and ensure your family’s long-term financial stability.

• Transferring real estate to family foundation: transfer agreement

Inheritance and gift tax exemption

Another major advantage of a family foundation is that it is exempt from inheritance and gift taxes. By transferring your assets to the foundation, you can avoid these taxes. In addition, the income of charitable family foundations is tax-free, which means that the assets benefit the foundation’s purpose in full.

Taxation of the current income of the foundation

Foundations are normally subject to corporate income tax and, where applicable, trade tax. But tax-privileged family foundations are generally exempt from these taxes. This means that income from donations, asset management and economic activities in the service of charitable purposes are exempt from tax. However, taxes are incurred if income is generated through economic activities that do not serve the charitable purpose.

Tax advantages of the family foundation

The family foundation also offers tax advantages on the income tax side. With a corporate income tax of only 15 percent and the omission of a possible trade tax, you can significantly reduce your tax burden. Capital gains from real estate are treated similarly to an individual, and distributions to beneficiary family members are mostly subject to the 25 percent final withholding tax. If you want to use the family foundation for a holding structure or avoid exit taxation, even further tax advantages await you.

The non-charitable character of the family foundation

It is important to note that a family foundation does not benefit the general public, but rather, in accordance with the foundation’s purpose in the articles of incorporation, benefits you and your family exclusively. Therefore, the comprehensive tax exemptions of a charitable foundation do not apply. Nevertheless, family foundations offer many tax advantages for securing and preserving family assets.

Conclusion: Establish a foundation and save taxes

A family foundation can not only help you save taxes, but also help you secure your assets for future generations and support charitable causes. With multiple tax benefits upon formation, inheritance and gift tax exemption, and tax advantages on the income tax side, the family foundation offers an attractive way to optimize your financial situation. Remember that sound advice from a tax expert is recommended to take into account your individual tax and legal needs and to derive the best possible benefits from a family foundation.

With my experts you will establish your company safely and with all tax advantages.

• Establish a family foundation
• Contact

Of course, you can also transfer real estate to a foundation.

Enchant your home with lamps & light

Have you just moved into your apartment and simply do not feel comfortable yet? Or have you been living in your apartment or house for what feels like an eternity and simply want a change? You have already moved the furniture 10 times and the change of the decoration does not cause the desired effects? Have you ever thought about taking a closer look at the lamps and lighting in your living space or even analyzing them? We will tell you why you should definitely consider changing the design or the lamps.

The design

Not only for furniture, such as sofas, dining tables and living walls, there is a huge selection, but also what concerns the design of lamps, the choice is not too scarce. You have the free choice and can decide which lamp design fits best to their interior. Lamps about lamps, there are the most different designs. Since everyone has different tastes in interior design, there are also different styles of lamps. You have probably already noticed the current lamp trend: geometric shapes. You will find the differences not only in whether it is a floor lamp or a ceiling lamp, but also in whether it is a lamp in vintage style or country style. A lamp that hangs in the middle of the room with a lampshade made of petals gives the room a playful, fresh impression, while a lamp made of glass looks more noble and high-quality.

The light

If you have decided on the right lamps, you are probably wondering what might now need to be considered. The light is also a decisive factor. On the one hand there is the glaring light that reminds you of a sterile doctor’s office and on the other hand a light that slowly gets brighter and brighter, so that you can always get used to it first. Especially when it comes to the bedroom, where you don’t necessarily want to be woken up with bright light in the morning, it makes more sense to use a light bulb that slowly brightens up. This is in complete contrast to the kitchen or the bathroom. When you are in these rooms, you usually want to know what you are doing and are then quite happy to have the light.

Technically, a distinction is made between warm white, neutral white and daylight white. While warm white is perceived as cosy, neutral white conveys a businesslike atmosphere and daylight white matches incident light. In particular, the change in light tone can be decisive for the feeling of well-being. Think about a lighting concept for each of your rooms, because this is the only way to create the optimum feel-good factor. Technically, a distinction is made between warm white, neutral white and daylight white. While the warm white is perceived as cosy, the neutral white conveys a businesslike atmosphere and the daylight white is suitable for incident light.

Lamps & Light: The best recommendations

You come from Wiesbaden and finally have the time and motivation to change something in your living space? Of course you can not know which shop in your area is the best to fulfill your wishes. That’s why we have picked out the best lamps & lighting shops in Wiesbaden for you. With a bit of luck there is a good shop right in your neighbourhood.

Lichteck GmbH Wiesbaden

Rating: 4.4 / 5.0

The lighting shop Lichteck GmbH is one of the most popular in Wiesbaden. Here most customers feel very well advised and also the size of the assortment is said to be ideal. Especially if you are not yet so sure what change you want to make in your living space, you are exactly right here, because you can expect good expert advice. Further reading: Lukinski Magazine.

• Wilhelmstrasse 10
  65185 Wiesbaden
• Phone: 0611 1666530
• Lichteck GmbH Website

LichtCenter GmbH

Rating: 5.0 / 5.0

Customers who have visited the LichtCenter in Wiesbaden are consistently enthusiastic. In particular, interested parties who are looking for something unusual are said to be at the right address here. So if you have special wishes, the LichtCenter in Taunusstraße could be the right place for you.

• Taunus Street 12-14
  65183 Wiesbaden
• Phone: 0611 53167592
• LichtCenter GmbH Website
• LichtCenter GmbH Facebook

Art Deco Lamp Wiesbaden

Rating: 4.6 / 5.0

• Nero Street 19
  65183 Wiesbaden
• Phone: 0178 1387136
• Art Deco Lamp Website

Light Projects

Rating: 3.7 / 5.0

• Mannstaedtstrasse 10
  65187 Wiesbaden
• Phone: 0611 1744203
• Light Projects Website

StockhausenLicht

Rating: No review

• Schuppstraße 2
  65191 Wiesbaden
• Phone: 0611 5058767
• StockhausenLicht Website

Wiesbaden city map for directions

Lamps & Light – Ideas to make yourself

No matter which shop you go to, a lamp that meets your expectations is just never there? Have you ever thought about whether it might be useful to build a lamp that matches your ideas yourself? If you have patience and some artistic skills, this could be the ideal solution for you. We have found three individual, special lamp ideas for you to build yourself. Who knows, maybe there is an idea that meets your expectations.

Lamp in concrete look

This lamp in concrete look is something very special. In simple steps you will learn in this video how you can easily make this lamp yourself. Due to the special style, the lamp does not fit to every interior. In particular, for facilities in the country style or facilities that are rather rustic, this style could be suitable. Should your interior rather consist of fine furniture and simple decoration, this lamp might seem a bit too clunky.

Cozy dining table lamp

This dining table lamp can conjure up coziness in your living room. Through the brown glass of the bottles, the light is dimmed and is ideal for romantic dinners or a TV evening. In just a few steps you have the opportunity to build this lamp yourself. Very practical: At the beginning you will be shown a material list where you can check if you have all the necessary materials at home. So that you still have enough light throughout the day, it makes sense to have a second lamp in the room or to choose a room that has large windows.

LED wall clock to build yourself

Hard to believe, this high quality looking LED wall clock is also handmade. In this video you will learn how to build this wall clock. You should plan relatively much time and patience, so that you can implement the idea. However, once you have done that, you will have a real eye-catcher hanging in your living room. The clock not only looks high-quality, it also shows the time and even provides a little light. The effort will be worth it.