BFH: No legal capacity for a Swiss foundation with administrative headquarters in Germany – therefore no inheritance tax

In its ruling of June 4, 2025, the Federal Fiscal Court (BFH) decided that a Swiss family foundation with its administrative headquarters in Germany does not have legal capacity and is therefore not subject to substitute inheritance tax. The BFH based its decision on the general principles of international company law and thus applied the seat theory.

This article deals with the practical significance of the decision and draws parallels with the treatment of EU/EEA foundations.