EU Member States urged to remove barriers to cross-border philanthropy before November 2025 deadline
EU Member States are under increasing pressure to remove barriers to cross-border philanthropy as the deadline to implement the Council recommendation on developing social economy framework conditions approaches in November 2025.
Legal and tax hurdles remain a significant obstacle to the free flow of philanthropy across borders. Recent publications from the sector, “Obstacles to cross-border philanthropy are real and the time to remove them is now” and “How to become a true European foundation in a (not yet) single market for philanthropy?”, highlight these challenges and demonstrate that philanthropy continues to face obstacles to cross-border giving.
The European Commission also recognises the need to act, advocating for Member States to implement the Council recommendation swiftly, and has introduced initiatives such as the 2023 Proposal on European Cross-Border Associations (ECBA) to ease cross-border work. As the 2025 deadline to implement the Council recommendation approaches, much of the responsibility now falls on national governments. Legislative changes, particularly those that harmonise tax rules, are essential to create a functioning cross-border philanthropic space.
Philea is calling on foundations and philanthropy organisations to advocate for change by engaging with national ministries to ensure implementation of the Council recommendation and encouraging the Council adoption of the ECBA Proposal. The sector can also contribute to efforts by showcasing practical instruments such as national tax certificates issued by public benefit entities with a view to creating a single European template for tax purposes. and contributing to the European Commission’s public consultation on the Single Market strategy, which closes on 31 January 2025.
By ensuring philanthropy’s voice is heard and reforms are prioritised, stakeholders can help realise an EU Single Market for philanthropy.
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