6 Key points of the Endowment:
1. Quick establishment & easy banking
2. Tax-free founding stake & only 2.5% donation tax
3. Full protection of assets from legal risks
4. Complete control and privacy unlike in Anglo-Saxons Trusts
5. Possibility to use for commercial transactions
6. Can be used for any assets worldwide
8 reasons why Endowment is an ideal business solution for you
Special kind of control The founders are not shareholders or owners of the Endowment, which legally disconnects them from ownership. This means the funds can be used only in favor of the beneficiary, in the way which is defined in the constituent documents. Full support by banks The banks and the registry are treating the managing director as the UBO. Full protection from legal risks The founders are fully protected from any risk in regarding the Endowment, and the commercial risk is limited to the activity of the elected Manager, which is completely equal to procedures and risks in any company. The founders have the possibility to closely monitor the activity and the operations run by the Manager and can replace him at any point of time. Perform all business activities An Endowment can perform all business activities not prohibited by the Serbian law, in order to achieve its goals. Fast, easy and effective procedure The founding of the Endowment takes less time, it is less expensive and procedure to open bank account is much easier, faster and practically 100% guaranteed. Perfect and low-cost replacement for Swiss Holdings An Endowment can own other companies and legal entities, which makes it the perfect and low-cost replacement for the Swiss Holding and some other entities in leading jurisdictions with full tax advantages. Complete privacy Founder of the Endowment can be Serbian association. In the case UBO wants to make his children or family the beneficiaries, he will have 100 % privacy, which together with the main purpose of the Endowment – protection of assets, offers business solution that is better than the one of the standard European or Anglo-Saxon trust. Fast and uncostly termination An Endowment can be terminated with no complications and high costs, with an option to safely dispatch the funds from the Endowment to another structure.
What is an Endowment
According to the Serbian law an Endowment is a legal entity without members, to which the founder has allotted certain assets for benevolent cause or private purpose, namely any legitimate effort allowed by the Constitution and Serbian law.
An Endowment may be established by at least one founder, which can be any legally capable individual or legal entity, domestic or foreign, resident or non-resident.
- Assets of the Endowment – Tax-free founding stake
The minimum value of the basic assets necessary for establishing an Endowment is 30.000 EUR in RSD counter value at a middle exchange rate of the National Bank of Serbia on the date of establishment.
It is possible that the basic assets be even lower than 30.000 EUR with the approval of the competent Serbian ministry.
- Use the Endowment to achieve the goal
The assets of an Endowment can be used exclusively for the achievement of the goals established by the Funding act and the Statute.
The assets of the Endowment cannot be distributed to the founders, members of the governing bodies, employees or persons affiliated with them, but the family members of the Founders may be named as the beneficiaries.
- Protection of assets
The assets of an Endowment do not represent the assets of the founders, members of the board of directors, beneficiaries and other connected persons therefore cannot be the subject of a court dispute, divorce etc.
This guarantees special kind of control without the exposure: the funds can be used only in favor of the beneficiary, in the way which is defined in the constituent documents by the Founder, who is not treated as the UBO.
- Low taxes
If the donation of a property is carried out by a person or legal entity who is not a taxpayer of VAT, there is no obligation to charge and VAT payment on that turnover.
In case of the Endowment, gift tax rate is 2.5%