LIECHTENSTEIN: An Introduction to Corporate/Commercial
The Principality of Liechtenstein
With a population of around 40,000 and a land area of just 160 km², the Principality of Liechtenstein ranks among the smallest countries in the world. Remarkably, it has preserved its territorial integrity for over 300 years. Nestled in the heart of Europe, Liechtenstein is a double landlocked state, bordered only by Austria and Switzerland. Its compact size is an advantage: the country maintains a streamlined and efficient government, with authorities who see themselves as service-oriented partners to both citizens and businesses – fostering a dynamic and supportive environment for enterprises of all sizes.
Liechtenstein’s 1921 Constitution blends monarchical and democratic principles. The government is led by a five-member cabinet, nominated by parliament and formally appointed by the prince for a four-year term. The unicameral parliament, the Landtag, is elected every four years through proportional representation.
Despite its small size, Liechtenstein boasts a highly developed and diversified economy. In 2023, its gross domestic product (GDP) reached approximately CHF7.4 billion (statistikportal.li, October 2025). Strategically positioned, Liechtenstein acts as a bridge between the eurozone and Switzerland, enjoying the benefits of both. As a member of the European Economic Area (EEA) since 1995, it has full access to the EU single market. At the same time, its customs union with Switzerland, established in 1923, allows it to use the Swiss franc as its official currency. This unique combination makes the principality particularly appealing to international businesses, investors and capital providers.
In a 2024 the International Monetary Fund (IMF) welcomed Liechtenstein as its 191st member, after this had been approved by the population in a referendum, signalling a commitment to strengthening financial stability and ensuring access to international support during times of crisis.
Liechtenstein as a Financial Centre: Stability, Innovation and Global Reach
The financial sector is a cornerstone of Liechtenstein’s economy. Liechtenstein enjoys a strong international reputation, particularly in banking, insurance, asset management and fiduciary services.
In addition to its long-standing strength in managing private wealth through trusts, foundations and establishments, Liechtenstein has emerged as a boutique financial hub, offering an ideal setting for business growth. The country hosts several banks specialising in international private banking and wealth management, many of which have a global presence through subsidiaries in Switzerland, Europe, the Middle East and Asia.
The financial sector remains stable and resilient despite global challenges, including rising interest rates and geopolitical tensions. As an EEA member, Liechtenstein is required to incorporate all EU Directives and Regulations related to financial services – such as the Capital Requirements Directive (CRD), the Markets in Financial Instruments Directive 2014 (MiFID II), the Alternative Investment Fund Managers Directive 2011 (AIMFD), and the Solvency II Directive – into its national law, creating a largely harmonised legal framework for financial institutions. The Financial Market Authority Liechtenstein (FMA) acts as the independent regulator for the entire financial market, overseeing banks, insurers, funds, pension providers, and trustees, while maintaining close co-operation with European supervisory authorities.
In addition to traditional private banking, Liechtenstein’s fund and insurance sectors are particularly dynamic and growing, benefiting from the country’s EEA membership and proximity to Switzerland. Fintech companies - including a notable number of insurtechs - also find a fertile environment in Liechtenstein. The combination of political openness, economic resilience, and a progressive legal framework has attracted numerous companies developing blockchain-based business models. Several private banks have adopted these technologies and are now tailoring their services to meet the specific needs of fintech and insurtech clients. Last but not least, Liechtenstein has proactively implemented the Markets in Crypto-Assets Regulation (MiCAR), reaffirming its role as a leading fintech hub with a secure regulatory foundation. Unlike many jurisdictions that remain cautious, Liechtenstein has positioned itself as a welcoming and innovation-friendly environment for forward-thinking enterprises.
The country’s Office for Digital Innovation (Stabsstelle für Finanzplatzinnovation und Digitalisierung) serves as a central platform bringing together public and private stakeholders. It supports digital transformation and acts as the first point of contact for international companies exploring opportunities in Liechtenstein.
A distinctive feature of Liechtenstein’s financial sector is its long-standing tradition as a hub for private clients and family offices, supported by the exceptional quality of its trust service providers. A well-established legal framework and extensive case law in foundation and trust law, as well as its high compliance standards, make the country an ideal location for wealth structuring.
As a financial centre, Liechtenstein is defined by discretion, stability, and internationalism. By consistently aligning with global standards, Liechtenstein has developed into a modern, highly regulated financial jurisdiction. Its anti-money laundering regulations meet the highest international benchmarks, a critical consideration for institutional investors and family offices, as most recently confirmed by MONEYVAL, the Council of Europe’s expert committee on anti-money laundering and counter-terrorism financing.
A Hub for Business, Wealth and Charity
Liechtenstein’s corporate law, the Persons and Companies Act (PCA), has been in force since 1926 and establishes the country as the only trust jurisdiction in continental Europe. Its flexibility and broad range of legal entities make Liechtenstein an attractive location for both business formation and private wealth structuring.
Foundations and trusts are commonly used for estate planning, wealth preservation, and charitable purposes. The jurisdiction offers unique advantages for private wealth structuring as well as for philanthropic activities. The growing number of charitable trusts and foundations underscores Liechtenstein’s reputation as an internationally recognised centre of philanthropy.
In addition, Liechtenstein law provides internationally recognised company forms, such as the public limited company and the limited liability company. As an EEA member, the country implements key EU directives that harmonise cross-border merger and reorganisation procedures for these entities across Europe.
Supporting this legal framework is a highly specialised ecosystem of professional service providers offering legal, fiduciary, tax, wealth management, and private banking expertise to international standards.
Liechtenstein has introduced several key reforms to modernise its company law and administrative processes. The Office for Digital Innovation actively tracks developments, including in EU digitalisation legislation and identifies emerging initiatives and strategic trends in the digital sector at an early stage.
Conclusion
Despite its small size, Liechtenstein provides a dynamic and forward-looking economic environment. Its flexible corporate law, political stability, strong integration with the European market, and diverse range of legal forms make it an ideal location for businesses, financial service providers and private clients internationally.