Private Foundations in Gibraltar
Europa Trust Company Ltd
07 August, 2017
The Private Foundations Act 2017 was recently introduced in Gibraltar and provides for the establishment of private foundations. Europa Trust Company Ltd reports on private foundations and the positive implications it holds.
A private foundation is a legal entity setup by an individual, family or group of people for a specific purpose. It is established by a Foundation Charter and registered by the Registrar of Foundations.
Foundations have existed in Europe since 1926. They were introduced to provide a civil law equivalent to a common law trust.
There are a variety of reasons for setting up a foundation and some of them include asset protection, charitable purposes or estate and inheritance planning. Foundations appeal to people who are not familiar with establishing trusts.
Europa Trust Company Ltd has always been at the coalface of positive developments in the local financial services industry. On this occasion, we were invited along with other industry leaders to consult on regulatory issues affecting the new foundation licensees.
When the Private Foundations Bill was passed earlier this year, Albert Isola, the Gibraltar Minister for Commerce, stated that it now "adds to the strength of the Gibraltar proposition as a leading transparent and compliant onshore financial services jurisdiction in Europe."
The Private Foundations legislation is a significant addition to the extensive financial services that Gibraltar can offer as a finance centre. It provides clients with choice and flexibility within the fiduciary sector. There is a global demand for foundations and more importantly for foundations to be domiciled in a well-regulated, transparent and co-operative jurisdiction. Gibraltar is such a jurisdiction.
The introduction of the foundations legislation allows Gibraltar to provide another valuable financial product and continue to meet international obligations and high standards.
For more information on private foundations in Gibraltar and their advantages visit our webpage or contact one of our foundation specialists to guide you to achieve your goals.
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