Key facts Liechtenstein taxation

The Principality of Liechtenstein is a sovereign and politically stable country in Central Europe. Liechtenstein is one of the few countries in the world with more registered companies and jobs than citizens. In recent decades, a prosperous, highly industrialized, free enterprise economy has developed. The country has been internationally recognized as a financial center over decades, especially with regard to the formation of foundations. In the recent years, the Liechtenstein foundation has developed as an ideal instrument for inheritance provisions. Additionally, Liechtenstein has diversified as a financial center by offering alternative investment funds.

Limited liability company (GmbH):

  • minimum share capital of EUR 30,000
  • board of directors is required
  • local registered office is required

Company limited by shares (AG):

  • Minimum share capital is CHF 50,000 and has to be paid up upon incorporation
  • No Disclosure of Beneficial Owner
  • Minimum two Shareholders
  • Minimum one Directors
  • Local Registered Office is required
  • Company Secretary is not required
  • Submission of annual financial statements is required

Foundation (Stiftung):

  • the founder can be a national of and reside in any country
  • the founder can be the sole beneficiary
  • only commercially active foundations must register with the government. Beneficiary’s names are never part of any public records.
  • minimum share capital is EUR 30,000
  • cannot be used for international commercial trading, but as a holding company or investment holding company
  • at least member of the foundation board must be resident in Liechtenstein
  • local registered office is required

Private Benefit Family Foundations pay no taxes. However, U.S. and those from other countries taxing worldwide income must report all income to their tax agencies.

Besides the corporate tax, it must pay a net assets tax at a rate of 2.5% and it needs a registered office.

Establishment (Anstalt):

  • commercial activities, as a holding or investment company
  • minimum share capital of EUR 30,000


  • holding company
  • minimum share capital is EUR 30,000


  • Profit tax at a flat rate of 12.5%
  • Annual corporate minimum tax of CHF 1,200 for tax years starting 1 January 2017. This tax can be fully credited to the profit tax
  • Full tax amount is due even if the corporation is not resident in Liechtenstein for the whole tax period
  • Minimum tax is not due if the total assets of an operating entity did not exceed CHF 500,000 during the last three years
  • Dividend income is not subject to tax in Liechtenstein
  • No withholding tax on interest payments to local or foreign recipients
  • Royalty income is taxable under income tax. However, a deemed deduction of 80% of qualifying income from intellectual property (IP) is granted
  • Capital gains are taxable under income tax
  • VAT is 8%, reduced rates are 3.8% (hotel and lodging industry) and 2.5% (deliveries of food, drugs, magazines, newspapers and books) and 0%
  • VAT registration is required if turnover more than EUR 100.000
  • losses can be carried forward indefinitely, however, utilization of tax losses is limited to 70% each year