Depending on the time you have already spent in Liechtenstein, you might be considered a resident tax payer or not. When investors from an EEA country decide to conduct business activities in Liechtenstein there are special tax regulations and advantages which apply to their particular case. Different legal structures and different business industries may be subject to different taxation provisions. If you are interested in the legal provisions regarding tax exemptions applied in Liechtenstein, you can rely on the legal counseling provided by our Liechtenstein law firm.
Taxes paid by foreign companies in Liechtenstein
The main taxes applied to foreign companies in Liechtenstein are the following:
• corporate tax – The net profit of a company in Liechtenstein is taxed at a flat rate of 12.5%. There is also a minimum amount of 1,200 Swiss francs which is applied to companies with moderate annual revenue. Even non-resident companies who obtain income from Liechtenstein are obliged to pay the full tax amount for the entire tax period. An exception is applied to companies whose revenues do not exceed CHF 500,000 for a period of three years.
• value added tax (VAT) – The general VAT rate in Liechtenstein amounts to 8%, which is one of the lowest rates in the European space. Exemptions apply to enterprises which gain profits from sectors such as health, education and insurance. Our Liechtenstein lawyers can tell you more about the special rates which apply to particular industries in this country.
• related to social insurance (PRSI) – There are several insurance pillars in Liechtenstein which receive payments from employers. These refer to contributions to several funds, such as the old age and survivors' insurance (AHV), disability insurance (IV), family allowances fund (FAK), unemployment insurance (ALV) which amounts to no more than 6% of the salary.
Special taxation conditions for foreign investors in Liechtenstein
There are several ways in which foreign investors in Liechtenstein benefit from special tax conditions. Foreign tax relief is allowed against domestic taxes through the credit method, according to the double taxation treaties signed by Liechtenstein with other economies.
Another aspect which regards the taxation of foreign investors
is the Liechtenstein regulation regarding the dividend payments
. The state does not impose a tax on the income which proceeds from foreign investment.
Feel free to contact
our law firm in Liechtenstein
for tax advice and other legal services in this country.