The German Federal Fiscal Court has confirmed in its judgement of 1 October 2025, X R 20/22, the following:
1. The freedom of movement of capital under Article 63 of the Treaty on the Functioning of the European Union is not infringed by the fact that the tax treatment of a donation to a Swiss foundation must comply with the same test as a German foundation to receive a tax-privileged status.
2. In the case of donations to a foreign charity, the burden of proof that the conditions arising from those requirements are met rests with the domestic donor.
3. The national legislature is not obliged to recognise charitable status under foreign law.
Federal Finance Court, judgment of 1 October 2025, X R 20/22
