Transnational Giving Europe


Since July 20, 2009, the Luxembourgish Tax Authorities started granting tax advantages for donations made to beneficiaries located in other member states of the Free Trade European Association. Donors fiscally domiciled in Luxembourg will thus be able to benefit of the tax deductions authorised by law, including for donations made outside the borders.


On top of this, the Fondation de Luxembourg is a member of Transnational Giving Europe and promotes cross-border donations to and from 19 countries of the network (Austria, Germany, Belgium, Bulgaria, Croatia, France, Hungary, Italy, Luxembourg, Netherlands, Poland, Portugal, Ireland, Romania, United Kingdom, Slovakia, Slovenia, Spain and Switzerland).
Apart from TGE, cross-border donations are at present not mutually recognised by the EU Member States and donors are not yet entitled to any tax benefits.
In January 2009, the Persche Judgement C-318/07 handed down by the European Court of Justice clarified this issue by ruling against the German tax authorities which had refused to grant tax benefits in connection with a donation made in Portugal by a German tax resident. The donation would have been deductible if the beneficiary organisation had been situated on German territory; consequently, the refusal was regarded as an obstacle to the freedom of movement of capital of which donations to philanthropic causes are an integral part.
However, while this freedom of movement of donations is certainly one of the guiding principles in Europe, the practice is not always so simple because no formal mutual recognition of the concept of “public interest” exists as yet between the EU Member States.  That is why national foundations in 19 European countries have set up a network enabling donors in these countries to transfer their donations via the member foundation of TGE in their respective country, to the country of their choice among these 19 states, while still benefiting from the tax advantage in their country of residence. TGE is expanding constantly.
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