How easy is to set up a business in Liechtenstein?
In order to meet all the necessary conditions for company registration in Liechtenstein
it’s advisable to contact a law firm
specialized in such transactions. The process is not very complicated as the authorities are supporting foreign investments and try to attract them by various measures including a short time necessary in order to incorporate a new business.
How easy is to hire personnel in Liechtenstein?
The Liechtenstein workforce is formed mostly by employees which are experts, well trained and English and German speakers. In order to find the suitable candidates, it’s advisable to hire an employment agency. In certain cases, it is much cheaper to publish announcement adverts in specialized newspapers, but this process takes time and resources.
What are the main points of interest for foreign investors?
Liechtenstein, even though is a small state, is considered a very advantageous commercial location (right between Austria and Switzerland) and considered to be one of the most politically stable countries in the world. In fact it is the only European country with no government debt. It has a legislation rather liberal related to business and tax policy issues. The service sector is mostly represented by the banking and insurance. Its status as a member of European Economic Area (EEA) is granting a higher credibility among the investors.
Major advantages are granted to the foreign investors opening a Liechtenstein Stiftung (foundation) which is not subject to capital gains, income tax, transfer tax or estate tax in Liechtenstein. In the foundations, the 100% foreign ownership is allowed. These vehicles are mostly opened for charity reasons and no profits for the interests of the investors can be raised.
What are the advantages of a holding company in Liechtenstein?
The main advantages granted to the owners of Anstalt companies (holding companies) are that they benefit from international tax-exempt profits. Also the companies mostly performing exports can receive VAT refunds on goods and services bought. Normally the VAT is levied at 8%.
Other advantages are granted on the profits of the companies with residence in a country which has signed a double tax treaty with Liechtenstein. These companies have their profits not taxed at all or if they are taxed, a credit is guaranteed in the country of origin. Other advantages granted to the investors are that there are no withholding taxes on dividends, interests and royalties paid to non-residents.