The investment fund taxation regime in Liechtenstein
is a beneficial one and represents one of the main reasons why the small country remains a recognized fund center in Europe.
The taxation of investment funds in Liechtenstein is subject to several conditions and income derived from one of the types of investment funds is falls into the scope of the corporate profits tax.
One of our lawyers in Liechtenstein
can give you details about the provisions of the Tax Act in Liechtenstein, for all types of investment funds.
Investment fund taxation in Liechtenstein
Income derived from investment funds is subject to the 12.5% corporate profit tax. Dividends and capital gains from investment funds are exempt from taxation in Liechtenstein. Income from managed assets is not subject to corporate income taxation.
Investors in Liechtenstein who participate in Alternative Investment Funds (AIF) are not subject to transfer taxes when they perform the AIF-related activities. However, the tax exemption
only applies in Liechtenstein and foreign investors may be subject to different taxation rules according to their domicile. One of our attorneys in Liechtenstein
can give you more information on the taxation of foreign investors and the applicability of double tax treaties
. Investors who hold assets in an AIF are subject to the wealth tax.
Tax exemptions in Liechtenstein
Liechtenstein abolished the property tax and there is no coupon tax. Companies that have the status of a personal wealth structure (PVS) are entitled to a tax privilege in the form of minimal taxation: they are only subject to the minimum income tax and there is no other tax beyond that.
Liechtenstein is a convenient fund centre not only because of the low taxation regime
but also because of the high investor protection. The Liechtenstein Fund Law established clear rules for investors and the Financial Market Authority provides the supervision of this business sector.