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Stiftung (Foundation)


Liechtenstein foundations engaging economic activities are taxed as corporations and subject to a 12.5% profit tax. Investment income and capital gains may be exempted from taxation, under certain conditions.

Alternatively, foundations that only hold private wealth or investments and do not carry out economic activities may apply for the tax status of a Private Asset Structure. Foundations considered Private Asset Structures are only liable to pay the minimum annual profit tax of CHF 1,200, and tax return filing may not be required.

  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 12.5% Offshore Income Tax Rate
  • 12.5% Corporate Tax Rate
  • 12.5% Capital Gains Tax Rate
  • 0% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 0% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • Indefinitely Losses carryforward (years)
  • FIFOAverage cost Inventory methods permitted
  • 5.00% Social Security Employee
  • 7.25% Social Security Employer
  • 28% Personal Income Tax Rate
  • 8% VAT Rate
  • 37 Tax Treaties

Country details

d e - L I

The Principality of Liechtenstein is a small German-speaking landlocked state of alpine Europe that borders with Switzerland to the west and Austria to the east.

It is an enclave that, along with Switzerland, is not part of the European Union, but is part of the Schengen Area.

Its international relations are coordinated with Switzerland (the state with whom it delegates its military defense).

It has an area of just over 160 sq. km and it is inhabited by about 37,000 people. The capital is Vaduz and the most populated city is Schaan.

Liechtenstein is the fourth smallest country in Europe, after Vatican City, Monaco, and San Marino. Its resident population is composed of about a third of foreigners, mainly Germans, Austrians, Swiss, and Italians.

Liechtenstein is a constitutional monarchy, headed by the prince, or Fürst. The sovereignty of the state is shared between the prince and the citizens, who choose a parliament. The parliament of Liechtenstein, the Landtag, is composed of 25 representatives chosen by the people. A five-member chamber is responsible for daily political affairs.

The country has an economic union with Switzerland and uses the Swiss franc as the national currency, although it had its own currency, the Liechtenstein franc.

Liechtenstein is a member of the European Economic Area (an organization that acts as a bridge between the European Free Trade Association (EFTA) and the European Union) since May 1995.

Its economy, despite its small size and scarcity of natural resources, is highly industrialized, free-enterprise oriented and has the third highest per capita income in the world, after Qatar and Luxembourg.

Its economic bases are industrial exports, tourism, and financial services.

Industries include electronics, textiles, precision instruments, metal manufacturing, power tools, anchor bolts, calculators, pharmaceuticals, and food products.

It has an important financial center, specialized in financial services for foreign entities and wealth management for non-resident individuals.

Low business taxes and very advantageous incorporation laws have led to a significant number of multinational companies to establish nominal offices in Liechtenstein.

Regarding the primary sector, it produces wheat, barley, corn, potatoes, dairy products, livestock, and wine.

Tax treaties

Country Type Date Signed
Finland TIEA 2010-12-17
Denmark TIEA 2010-12-17
France TIEA 2009-09-22
Germany TIEA 2009-09-02
United Kingdom TIEA 2009-08-11
Antigua and Barbuda TIEA 2009-11-24
Singapore DTC  2013-06-27
Ireland TIEA 2009-10-13
Japan TIEA 2012-07-05
Luxembourg DTC  2009-08-26
Iceland TIEA 2010-12-17
Guernsey DTC  2014-06-11
India TIEA 2013-03-28
Greenland TIEA 2010-12-17
Italy TIEA 2015-02-26
Switzerland DTC  1995-06-22
Canada TIEA 2013-01-31
Hong Kong, China DTC  2010-08-12
Czech Republic DTC  2014-09-25
Faroe Islands TIEA 2010-12-17
Australia TIEA 2011-06-21
Sweden TIEA 2010-12-17
China TIEA 2014-01-27
San Marino DTC  2009-09-23
Uruguay DTC  2010-10-18
Austria DTC  1969-11-05
Malta DTC  2013-09-27
Norway TIEA 2010-12-17
Mexico TIEA 2013-04-08
South Africa TIEA 2013-12-06
Netherlands TIEA 2009-11-10
Andorra TIEA 2009-09-18
Monaco TIEA 2009-09-21
Saint Vincent and the Grenadines TIEA 2009-10-02
Saint Kitts and Nevis TIEA 2009-12-11
Belgium TIEA 2009-11-10
United States TIEA 2008-12-08


We can help you incorporate a Stiftung (Foundation) in Liechtenstein.
Please, contact us to request a free, no obligation consultation.


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