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Taxation in Liechtenstein

Taxation in Liechtenstein

Updated on Thursday 19th January 2017

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Liechtenstein is an attractive location for assets investments. By the recent amendments to the Tax Law, ratified in 2011, Liechtenstein truly modernized its taxation system. With one of the most competitive legal frameworks, Liechtenstein has become an interesting spot for both local investors and international ones. However taxation rates could quite often be subject to changes, thus we advise you to regularly consult with attorneys in Liechtenstein for up to date information.

Taxation rules in Liechtenstein 

Only if you are a tax resident in Liechtenstein, you will be taxed on your worldwide income. For non-residents, the taxation applies only for the revenue generated in Liechtenstein. In case a commercial activity takes place at large in the European Union, there is a risk of double taxation. In order to avoid such thing, it is advisable for the owner to contact a law firm in Liechtenstein and to have this issue clarified.
Both on-shore and off-shore legal entities, regardless whether commercially run or non-commercial businesses, will respect the same taxation rules. There is a flat tax rate of 12.5% applied to the company’s net profit, and an amount of 1,200 Swiss francs as a minimum corporate tax payable by legal persons such as private asset structures (PVSs).
The income subject to taxation is the total revenue of the company, from which one can subtract well motivated business expenditures. For legal advice regarding taxation in Liechtenstein you could employ the services of a law firm in Liechtenstein

Tax Law innovations in Liechtenstein 

There are several elements of modernization which have been adopted in the Liechtenstein Tax Act from 2011:
  • the inclusion of group taxation - one of the principal new elements introduced by the 2011 Law is the strategy of corporate association, targeting a better compensation of eventual losses over the year;
  • provisions regarding the taxation of patent income;
  • regulations on the taxation of insurance premiums;
  • the provision on branches – they follow the general taxation rules which apply to all companies in Liechtenstein;
  • taxation issues regarding cross-border restructurings;
  • the annulment of special company taxes for domiciliary companies (companies with a registered office in Liechtenstein, but managed and controlled from abroad).
For more information on taxation and for a professional counseling in these issues, don’t hesitate to contact our lawyers in Liechtenstein.


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