Cost Benefit Analyses of Developing a Legislation to Attract Non-Resident High Net Worth Individuals to Use Estonian Private Foundation Platform

Urmas Kaarlep, Hamed Alavi


On a global level, the high net worth population is expanding, and the wealth of high net worth individuals (HNWI) is increasing rapidly. For various reasons, high net worth families and individuals are searching for vehicles to assist them in safeguarding and conveniently managing their wealth. Private foundations represent one useful avenue for achieving this end, and the use of private foundations has become increasingly popular in recent years, particularly in European countries. Many countries have laws which regulate private foundations and several are looking for adjusting or introducing legislation.

In this article, authors analysing benefits for a country like Estonia in case the country increases the attractiveness of its jurisdiction for non-residents who are looking for establishment of a private foundation. The article comes to the conclusion that to be competitive, a country cannot collect tax revenues from private foundations established by non-residents except from income originated in the very same country. However, the country can earn benefits from revenues received by companies rendering services to non-residents and their private foundations. The article demonstrates that service fees a country earns and taxes collected from these fees would be substantial enough to make necessary changes to legislation beneficial for a country.


Taxation, Private Foundation, Cost-Benefit Analysis

Full Text:



Indexing and Abstracting Services


Other Sources and Services



Creative Commons License
International Journal of Commerce and Finance is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License.

Mailing Address

  International Journal of Commerce and Finance
Küçükyalı E-5 Kavşağı, İnönü Caddesi, No: 4
Küçükyalı, Maltepe, İSTANBUL, TURKEY
E-mail :