LIECHTENSTEIN: An Introduction

Liechtenstein’s Position as a Wealth Hub in 2025

Liechtenstein has successfully established itself over the past decades as a globally recognised jurisdiction with ideal conditions for long-term wealth and estate planning and has been the place of choice for high net worth and ultra high net worth individuals. Thanks to its financially and legally robust framework, Liechtenstein remains one of the world’s most attractive jurisdictions for wealth structuring, especially in times of increased geopolitical turbulence.

This is not only due to the country’s financial and political stability (Liechtenstein has one of the highest GDPs in the world and has maintained a stable AAA credit rating for decades), but above all to the well-considered conclusion of international agreements that are tailored to the needs of a microstate.

Another – and probably the most important – pillar that characterises Liechtenstein as a leading jurisdiction in the area of wealth structuring and estate planning is Liechtenstein corporate law, which is codified in the Persons and Companies Act, enacted already in 1926. In addition to foundations and trusts, which are predestined for wealth planning structuring, the Persons and Companies Act also regulates corporations such as the stock corporation or limited liability company. From the outset, the declared purpose of Persons and Companies Act was to create a liberal and innovative Liechtenstein corporate law that would not only provide international clients with the largest number of legal forms worldwide (which was indeed true back then) but also offer extensive options for tailor-made structuring solutions. This liberal spirit inherent in Liechtenstein corporate law has remained intact to this day.

In view of this, the following key aspects that characterise Liechtenstein as a jurisdiction are must-knows in the private wealth and high net worth industry.

Liechtenstein’s international agreements: the best of both worlds

The decision to conclude or not conclude international agreements in Liechtenstein has always been based on its specific needs as a microstate and financial centre.

A prominent example: although Liechtenstein is not a member of the EU, it is a member of the EEA and has also been economically linked to Switzerland for over 100 years now through a currency and customs treaty, which in particular establishes the Swiss franc as Liechtenstein’s national currency. Liechtenstein thus benefits from direct access to the European single market through its EEA membership, while at the same time maintaining close economic ties with Switzerland.

The advantages of membership in both of these agreements are more relevant than ever: while imports from Switzerland to the USA have been subject to a tariff rate of 39% since the beginning of August 2025, imports of Liechtenstein goods to the USA are subject to a tariff of “only” 15% (which corresponds exactly to the tariffs imposed by the USA on the EU and other EEA member states).

Apart from the EEA Agreement and the Currency and Customs Treaty with Switzerland, Liechtenstein has only concluded bilateral agreements with Switzerland and Austria on the recognition and enforcement of foreign court decisions. In particular, the Brussels Regulation, which is directly applicable in all EU member states, does not apply to Liechtenstein as an EEA member. Thus, the enforcement and recognition of foreign court decisions is extremely limited. However, and in contrast, international arbitration awards are widely recognised and enforceable in Liechtenstein given that Liechtenstein is a contracting state of the New York Convention. This situation by nature leads to increased asset protection for Liechtenstein legal entities.

Tailor-made asset structuring possibilities

In practice, Liechtenstein legal entities are often used for cross-generational asset management, (corporate) succession planning as well as philanthropy projects. The overlapping trend connecting all these usage areas in a nutshell: international clients are increasingly requesting customised solutions. Liechtenstein corporate law offers the ideal framework for such customised solutions. Contrary to certain trends in other jurisdictions, which often have a negative view of vehicles such as foundations and trusts and thus do not offer such solutions, Liechtenstein corporate law supports the private-autonomous structuring of foundations and trusts rather than the implementation of a restrictive corset of binding legal provisions. The basic principle of Liechtenstein corporate law can be summarised as follows: anything that is not explicitly prohibited by law is a permissible structuring option.

Strict quality and due diligence standards for Liechtenstein service providers

The Persons and Companies Act requires that at least one member of the administration of a legal entity (except for trusts) is a professional Liechtenstein trustee/service provider.

As the management of assets (initially contributed by a founder or settlor) requires a high degree of integrity and responsibility, these professional service providers are subject to strict legal requirements regarding their qualifications and duties of care, compliance with which is regularly monitored by the Liechtenstein Chamber of Trustees as well as the Financial Market Authority. In addition, in the event of misconduct on the part of such professional trustees, a strict law on damages applies to them, including, inter alia, a reversal of the burden of proof towards the trustee alleged to have breached their duties. Liechtenstein criminal law also includes several provisions to prevent any possible misconduct in connection with the administration of companies and for the prevention of money laundering. As a result, the administration of Liechtenstein legal entities meets the highest international standards.

Liechtenstein’s regulatory approach: early adoption and innovation-driven

Liechtenstein also offers the ideal framework in areas regulated by financial market law.

On the one hand, Liechtenstein’s EEA membership allows regulated Liechtenstein legal entities (eg, banks or issuers of money market instruments) to passport any licence obtained in Liechtenstein within the entire EU and EEA area and thus enter the entire EU/EEA single market via Liechtenstein while at the same time making use of the beneficial Liechtenstein corporate and tax laws

On the other hand, Liechtenstein has taken a pioneering role in the regulatory area. For example, many key provisions of Regulation (EU) 2023/1114 on markets in crypto-assets (MiCAR), which came into force throughout the entire EU/EEA in the beginning of 2025, are inspired by and derived from Liechtenstein’s own national Blockchain Act, which was enacted already in 2020.

These legal frameworks strengthen Liechtenstein’s position as a hub for innovative fintech companies and digital assets banking.

Corporate taxation considerations

Liechtenstein has a favourable national tax regime for legal entities with no taxation on realised or unrealised capital gains as well as interest on participations (eg, incoming and outgoing dividends) and lack of withholding tax. Also, a favourable corporate income flat tax of 12.5% applies, which based on deductions may lead to an even lower effective tax rate. Finally, due to a worldwide network of double taxation agreements (DTA), cases of double taxation in all types of cross-border relations can be avoided, making Liechtenstein an ideal place for international multi-jurisdictional holding structures.