A foundation is the classic way to give assets a purpose that outlives its founder. For long-term Bitcoin holders the idea is obvious: the coins are separated from private wealth, a board manages them by fixed rules, and succession does not depend on one person knowing where the keys are. Liechtenstein, Switzerland and Austria are the three German-speaking jurisdictions with established foundation law. They work differently. This article compares the essentials as of November 2026. It is general information, not legal or tax advice.
The three systems at a glance
| Liechtenstein | Switzerland | Austria | |
|---|---|---|---|
| Legal basis | Art. 552 §§ 1–41 PGR | Art. 80 ff. Civil Code (ZGB) | Private Foundations Act (PSG) 1993 |
| Minimum endowment | 30,000 in CHF, EUR or USD, fully paid in | No statutory minimum; supervisory authorities often expect around CHF 50,000 | 70,000 euros |
| Founding | Written foundation deed, will or inheritance contract | Public deed, will or inheritance contract | Notarial deed |
| Register | Private-benefit foundations: deed deposited with the Office of Justice (notice within 30 days, confirmed by a Liechtenstein lawyer, trustee or notary). Charitable foundations: entry in the commercial register | Entry in the commercial register creates the foundation | The foundation exists only once entered in the companies register (Firmenbuch) |
| Board | Foundation council of at least two members; one member authorised to manage must be a domestic trustee or equivalent | Foundation council as set out in the deed | At least three natural persons, two resident in the EU or EEA; beneficiaries and their close relatives are excluded |
| Supervision | Charitable foundations: foundation supervisory authority. Private-benefit foundations: limited, voluntary on request | Federal or cantonal supervision, depending on the field of activity; family foundations are not supervised | Foundation auditor appointed by the court, not by the founder |
| Family purposes | Permitted | Narrow: education, setting up in life and support in need; no general maintenance of the family | Permitted |
Liechtenstein: flexible, private and inside the EEA
Liechtenstein's foundation law allows private-benefit and charitable foundations. For a family foundation, the deed is not published in the commercial register; it is deposited with the Office of Justice, and a licensed professional confirms the founding notice. The council must include a qualified domestic member. Because Liechtenstein is part of the European Economic Area, EU financial-market rules such as MiCA apply there. For a family that wants a long-lived structure with discretion and an EEA connection, this is usually the first address.
Switzerland: strong for charitable foundations, strict for family ones
Swiss law needs no fixed minimum capital, but supervisory authorities expect the assets to be large enough for the purpose. Foundations are created by public deed or will and come into existence with their entry in the commercial register. Charitable foundations that pursue public purposes irrevocably can apply for a tax exemption at cantonal level. Family foundations are the catch: under Art. 335 ZGB they may support relatives with education, setting up in life or in cases of need, but not simply manage family wealth across generations. Switzerland is therefore stronger for charitable Bitcoin foundations — education, open-source development, research — than for dynastic wealth. Zug shows the pattern: several large protocol foundations, the Stiftung Ethereum among them, chose Swiss foundation law for exactly that kind of purpose.
Austria: clear rules, more governance
The Austrian private foundation (Privatstiftung) has a fixed minimum endowment of 70,000 euros and needs a notarial deed. It becomes a legal entity only once entered in the companies register. Governance is the defining feature: a board of at least three people, two of them resident in the EU or EEA, and no beneficiaries or close relatives on it. A foundation auditor, appointed by the court, checks the accounts. That makes the Austrian structure heavier to run, but very transparent — useful when a family wants clear separation between those who benefit and those who decide.
What changes when the endowment is Bitcoin
Foundation law was written for bank accounts, shares and real estate. Bitcoin adds four questions that the deed and the by-laws should answer from day one:
- Who controls the keys? A board decides collectively, so the keys should reflect that. A multi-signature setup in which a quorum of council members must sign is the natural fit. The by-laws should describe the key ceremony, where backups are kept and how keys are handed over when a member leaves.
- Self-custody or regulated custodian? A regulated custodian simplifies audits and insurance; self-custody keeps the foundation independent. Many structures combine both: a reserve in cold storage, operating funds with a custodian.
- How is the asset valued? Auditors and supervisory authorities need a valuation method and dates. Defining the reference price source in advance avoids debate every year.
- Where do the coins come from? Banks, custodians and registers ask for proof of origin. Exchange statements, wallet histories and tax records belong in the founding file.
How to choose
- Charitable purpose, public profile: Switzerland, possibly with tax exemption.
- Family succession with discretion: Liechtenstein.
- Family succession with strict separation of roles and an auditor: Austria.
Tax treatment depends on where the founder and the beneficiaries live, not only on where the foundation sits. That question belongs with a tax adviser in each country involved, before the deed is signed.
The name
Registers check names, and the word "foundation" — Stiftung — signals a legal form. A project that is not a foundation should not present itself as one. For an actual foundation, a clear name on the matching country ending is part of its credibility: donors, beneficiaries and authorities find it where they expect it. The portfolio holds bitcoinstiftung.li, bitcoinstiftung.ch and bitcoinstiftung.at — the same name in all three jurisdictions — as part of the Bitcoin Stiftung & Erbe bundle. The buyer is responsible for the lawful use of any name.
Sources
- Grant Thornton: overview of the Liechtenstein foundation (2023)
- Juhn Partner: founding a foundation in Liechtenstein
- PostFinance: founding a foundation in Switzerland
- WKO: the Austrian private foundation
As of November 2026. This article is general information and not legal, tax or investment advice.
