Setting up a foundation in Switzerland: requirements, costs and procedure explained in simple terms

07.09.2026

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For years, Mr Keller has supported various educational projects with donations. Over time, he’s wanted to ensure that this commitment continues in the long term. A foundation seems to be the right solution for this. But when’s a foundation actually worthwhile? What requirements need to be met and how does setting up a foundation in Switzerland work? These guidelines set out when a foundation is the right legal form, what costs and obligations it entails and what you need to do to set up a foundation in Switzerland.

At a glance

  • A foundation is suitable if assets are to be permanently dedicated to a clearly defined purpose.
  • The foundation requires, among other things, a clearly defined foundation purpose, sufficient assets to achieve this purpose and an appropriate organizational structure.
  • Besides set-up costs, there are also long-term obligations including admin, reporting and supervision.
  • Charitable foundations can be exempted from corporate income taxes and capital taxes under certain conditions. 

Our checklist gives you a full overview of the most important requirements, documents and the next steps for setting up your foundation.

Download the “Setting up a foundation” checklist The link will open in a new window

Quick check: Is a foundation the right legal form?

A foundation is a legal entity that permanently devotes assets to a specific purpose. Before you focus on the individual steps to set up a foundation, you should check whether this long-term commitment is suitable for your project.

  • Do you want to dedicate assets to a specific purpose in the long term?
    For example, to promote education, culture, research or for legally permitted family purposes.
  • Should the foundation’s purpose be permanent – regardless of individuals or generations?
  • Are you prepared to contribute assets irrevocably to the foundation?
    Following the set-up, these assets belong to the foundation and may essentially only be used to pursue the foundation’s purpose.
  • Are you prepared to organize and manage the foundation over the long term?
    This includes a foundation board and legal obligations such as accounting and reporting.

If several of these statements apply to your project, it’s worth taking a closer look at setting up a foundation.

What purpose should the foundation serve?

The foundation’s purpose is to determine the long-term goal of the contributed assets. For example, a foundation can support education, culture, research, environmental or social projects. A family trust, on the other hand, may only support family members to the extent permitted by law, such as for education, equipment or in an emergency.

The purpose should be clear enough to unambiguously reflect the founders' intent. At the same time, it should leave adequate room for manoeuvre so that the foundation can also respond to future developments.

Should the foundation be charitable or private?

Different types of foundation are possible depending on the objective. Charitable foundations have a purpose that is in the public interest and may be exempted from tax under certain conditions. Family trusts, on the other hand, serve legally permissible purposes for the benefit of family members and are subject to different legal and tax frameworks.

Does a foundation or association make more sense?

A foundation is suitable if assets are to be tied up permanently for a specific purpose. An association, on the other hand, is supported by its members and offers greater flexibility in terms of organizational structure and decision-making. 

Are you unsure whether a foundation or association is more suited to your project? The following overview shows the most important differences at a glance:

CriterionFoundationAssociation
Criterion
Aim
 Foundation
Permanently dedicate assets to a clearly defined purpose
 Association
Common purpose for all members
Criterion
Establishment
Foundation
By one or more persons via a foundation deed and the dedication of assets
Association
By at least two persons who determine a common purpose in the articles of association
Criterion
Assets
 Foundation
Assets are permanently tied to the foundation or dedicated to a purpose
Association
No minimum assets required
Criterion
Organizational structure
Foundation
The foundation board is the highest governing body and manages the foundation in accordance with the foundation’s purpose
 Association
General Meeting as the highest governing body
Criterion
Flexibility
 Foundation
Purpose can only be changed under the legally prescribed conditions
 Association
Purpose and articles of association can be adjusted by decision of the members
Criterion
Supervision
 Foundation
State supervision of foundations
Association
No state supervision as a rule
Criterion
Suitable for
Foundation
Charitable projects or legally permissible family purposes with long-term impact
 Association
Associations, interest groups, and sports, cultural or recreational clubs.

Useful to know: Setting up a separate foundation isn’t always the best solution. Depending on the assets, purpose, and the preferred amount of admin involved, you may also consider making a donation, establishing a sub-endowment within an existing foundation, or creating a sub-foundation under an umbrella foundation.

What is a foundation and what types of foundations are there?

A foundation is an independent legal entity that permanently devotes assets to a specific purpose. The person setting up a foundation transfers assets to the foundation. This may only be used to fulfil the purpose specified in the foundation deed. The legal basis for a foundation and its organizational structure is governed by articles 80 et seq, of the Swiss Civil Code (CC).

Foundations have a long tradition in Switzerland and play an important social role. According to the Swiss Foundation Report 2023, there are around 14,000 foundations in Switzerland holding a total of almost 140 billion francs in assets. This makes Switzerland one of the countries with the highest density of foundations in the world.

Two types of foundation are particularly relevant for private individuals: charitable foundations and family trusts. Swiss foundation law also recognizes other types of foundations, such as corporate, religious, or public-law foundations, which are usually established within a specific legal or institutional context.

A charitable foundation pursues a purpose that’s of benefit to the general public. For example, it can finance scholarships for students, support a regional museum, promote research projects at universities, facilitate nature conservation projects or support people suffering social hardship. 

If the foundation fulfils the legal requirements, it can be recognized as tax-exempt by the tax authorities.

A family trust provides support for family members. Swiss law imposes strict limits on this: it may not be used for general asset management or estate planning. This means it’s not suitable for managing family assets across generations or protecting against division of an inheritance.

Specifically, purposes such as supporting family members in relation to education, equipment or welfare matters are permitted. If you’re looking to set up a family trust, you should seek legal advice early on.

What are the requirements for setting up a foundation?

Various legal and organizational conditions need to be met before a foundation can be set up in Switzerland. A clearly defined foundation purpose, adequately funded foundation assets and a suitable organization (Art. 80 et seq. of the Swiss Civil Code) are particularly important.

The foundation’s purpose is bindingly defined in the foundation deed and forms the basis for the foundation’s activities. It determines what the foundation’s assets may be used for and serves as a benchmark for the supervision of the foundation.

As the foundation’s purpose can only be changed later under strict legal conditions, it should be formulated carefully. It’s also advisable to provide sufficient leeway so that the foundation can also respond to future developments.

Every foundation needs assets to fulfil its purpose in the long term. Unlike other legal forms, the law does not impose a fixed minimum amount. However, the assets need to be sufficient to enable the foundation to perform its tasks sustainably.

The amount of foundation assets required depends on the chosen purpose and the planned activities of the foundation. The decisive factor is not the amount of assets alone, but whether their income or, if planned, the use of assets can finance the foundation’s purpose in the long term. Securities, real estate or other assets can also be contributed besides cash under certain conditions.

Useful information

In practice, many supervisory authorities require starting assets of at least around 50,000 francs for traditional foundations. However, the exact amount is not specified by law. The key factor is that the assets can finance the foundation’s purpose and ongoing costs in the long term.

The foundation board is the foundation's highest governing body. It’s responsible for ensuring that the foundation’s purpose is fulfilled, assets are managed carefully and legal requirements are complied with.

Depending on the size of the foundation, this may include strategic management, approval of the annual financial statements and cooperation with the auditors and the competent supervisory authority. With this in mind, you need to consider who can take on these responsibilities and what areas of expertise should be represented on the foundation board when the foundation is being set up.

How to set up a foundation in Switzerland

If the most important preconditions are met, the actual set-up process can begin. Depending on the complexity of the project, setting up a foundation usually takes between several weeks and a few months.

The foundation's purpose safeguards the founder’s original intent and ensures that the assets will serve that purpose in perpetuity. Define the foundation’s purpose as precisely as possible and record it in the foundation deed.

It’s advisable to draw up the purpose carefully, ideally with professional support, as it can only be amended later under strict legal conditions.

Determine which assets you want to contribute to the foundation on a permanent basis. The assets must be sufficient to fulfil the foundation’s purpose in the long term and to cover the ongoing costs of the foundation.

The foundation deed forms the legal basis of the foundation. This sets out the foundation’s purpose, foundation assets, organizational structure and composition of the foundation board. The foundation is established via official notarization or by a disposition of property upon death (will or contract of inheritance).

In practice, it’s advisable to have the draft foundation deed examined by the competent supervisory authority or a professional before public notarization. This means subsequent adjustments can often be avoided.

Appoint the foundation board’s members. The board bears the highest responsibility for the foundation. It manages the foundation’s assets, makes strategic decisions and ensures that the foundation’s purpose is fulfilled in the long term.

Make sure that the required competencies are represented on the board, such as in law, finance or the foundation’s funding area.

As soon as the required documents have been received, the foundation is entered in the commercial register. This entry gives the foundation its legal personality and enables it to conclude contracts and hold and manage assets in its own name, for example.

Once set up, the foundation is subject to oversight by the relevant supervisory body. This body regularly checks whether the foundation assets are being used in accordance with the foundation’s purpose and whether the legal provisions are being complied with. Depending on the area of activity, the relevant cantonal body or the Federal Supervisory Authority for Foundations is responsible.

The foundation is legally established once it has been entered in the commercial register. Before the foundation takes up its activities, its organizational basis should also be established. This usually includes a business account, functional accounting and processes for asset management and payment transactions.

With the PostFinance startup package founders can enjoy attractive advantages and suitable banking solutions from the outset.

What costs can I expect?

Depending on the foundation’s complexity, one-off startup costs are frequently around 10,000 to 15,000 francs. Depending on the individual case, this may include costs for the notary’s office, commercial register, legal and tax advice and any further clarifications with the relevant supervisory authority.

One-off costs:

  • Notary
  • Commercial register
  • Legal/tax advice

Ongoing costs:

  • Accounting
  • Asset management
  • Auditing
  • Supervision

Actual costs depend on factors such as the need for advice, the foundation’s purpose and the canton where the foundation is set up.

Which tax aspects apply to foundations?

Foundations in Switzerland are generally subject to corporate income tax and capital tax. Whether a foundation is liable for taxation or can benefit from a tax exemption depends largely on its purpose. The tax exemption is reviewed by the relevant cantonal tax authorities.

When can a charitable foundation be exempt from tax?

Charitable foundations may be exempted if they pursue exclusively and irrevocably public or charitable purposes. Their resources also have to be used entirely for this purpose and may not serve the interests of individuals.

The competent tax authorities will assess whether these conditions are met. A tax exemption must be applied for and recognized. Even if a foundation is exempt from tax, it’s still obliged to comply with legal requirements and to be accountable to the relevant authorities.

What are the tax differences compared to a family trust?

Family trusts do not pursue a charitable purpose, but serve legally permitted family purposes. This means they don’t generally meet the conditions for tax exemption and their tax treatment is different from that of charitable foundations.

As the tax treatment depends on the foundation’s specific structure, it’s advisable to obtain individual tax advice before setting up the foundation.

Your next steps in brief in the “Setting up a foundation” checklist

You need to be well-prepared before setting up a foundation. Before you permanently commit your assets to a specific purpose, it’s important to answer the most important questions – from the choice of the foundation’s purpose and the required assets to the legal and tax framework.

Our checklist gives you a compact overview of all the key steps involved in setting up a foundation.

Download the “Setting up a foundation” checklist The link will open in a new window

FAQs about setting up a foundation in Switzerland

  • Essentially, any natural person or legal entity with capacity to act can set up a foundation. The assets need to be permanently dedicated to a foundation purpose that’s legally permissible and the legal requirements of the Swiss Civil Code must be met.

  • The duration depends on the project’s complexity and preparation of the documents. It usually takes between several weeks and a few months to set up a foundation. If tax issues or special legal clarifications are required, the process can take longer.

  • Yes. A foundation can be set up by an individual person. The prerequisite is that the legal requirements are met and sufficient assets are permanently contributed for the defined purpose. Although the law does not prescribe a specific number of foundation board members for management, in practice a foundation board with several members is often elected to ensure the necessary professional competencies and adequate organizational structure are in place.

  • Yes. As a rule, you don’t need to be domiciled in Switzerland. It’s essential that the legal conditions are met and that the foundation meets the requirements in terms of headquarters, organizational structure and representation in Switzerland. Obtaining legal advice is recommended, depending on the individual situation.

  • Yes. A foundation can be established not only during a person’s lifetime via a public record, but also by a disposition of property upon death, i.e. by means of a will or inheritance contract.

  • A separate foundation is particularly suitable if assets are to be permanently dedicated to a specific purpose and managed independently. If you want to contribute smaller assets or reduce your admin workload, a better option can often be to set up an endowment or sub-foundation under an umbrella foundation.

    In practice, separate foundations with assets in the mid-six-digit to seven-digit franc range are often audited. However, there is no fixed legal limit. The key factor is that assets and income can finance the foundation’s purpose in the long term.

  • Yes. A foundation can collect and accept donations, provided this corresponds to the foundation’s purpose. Charitable foundations, in particular, often finance projects not only with the foundation assets contributed, but also with voluntary contributions from private individuals, companies or through legal relationships.

  • Only in exceptional cases.

    As the foundation’s purpose is intended to safeguard the founder’s intent in the long term, it can only be changed under the conditions stipulated by law.

  • Yes, but only under certain legal conditions. For example, if the foundation’s purpose can no longer be fulfilled on a permanent basis or if there are other legal reasons. The decision on whether to revoke the contract lies not only with the founder, but with the competent authority under the framework of the legal provisions.

Note: This article provides the key principles for setting up a foundation. For more complex legal or tax-related issues, we recommend that you seek advice from a legal or fiduciary specialist.

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