The value to society of charitable giving and philanthropy is recognised and growing in Europe and even more and more important in current troubled times. Many Member States promote such giving by providing fiscal incentives. Until recently, such benefits have stopped at national borders, but European and national fiscal and legal initiatives, in conjunction with the impressive extension of the Transnational Giving Europe network (TGE), have seriously improved this situation.
European donors do not want to be hampered any longer by legal or fiscal hurdles when they want to create a new philanthropic structure or simply support a foreign organisation and enjoy tax benefits from this.
Individual complaints at EU level, the famous European Court cases “Stauffer”, “Persche” and “Missionswerk” and important and relevant European Commission infringement procedures (by DG taxation and Customs Union) – requesting Member States to modify their treatment of taxpayers making donations to foreign-based public benefit organisations – are creating slowly but surely an enabling environment for cross-border philanthropy.
Useful Country Profiles
The Transnational Giving Europe network welcomes and supports this momentum and the progress that has already been made regarding changes to the national laws of Member States in two ways:
– By continuing to seek new partners to increase tax-effective giving in all the Member States of the EU until all legal and practical barriers to cross-border giving within the EU are removed.
– By providing concrete, valuable and free information to donors, intermediaries and beneficiaries that wish to give or receive a cross-border donation or legacy. Through the country profiles hereunder, you will find practical information and initial advice on how to deal with the legal and fiscal aspects involved in the cross-border philanthropic transaction (gift or inheritance taxes to be paid, possible relief or exemptions, bilateral tax treaties, alternative solutions, etc.). They will help you to understand the very concrete steps to be taken to find a solution. These profiles give an update on the legal and fiscal developments on this topic after Persche and Stauffer and provide input to the advocacy initiatives supporting a more favourable environment. They were realized in partnership with the European Foundation Centre and did lead to a study, “Taxation of cross-border philanthropy in Europe after Persche and Stauffer – From landlock to free movement?” published in July 2014 that calls for less red-tape and non-discriminatory tax treatment for donors and philanthropic organisations throughout the Member States.
Please click hereunder to obtain the profile of the country you are interested in.
The countries marked [*] are members of the Transnational Giving Europe Network.