Internationally successful sportspersons and artists rely on Liechtenstein
It was a great success: The first FS+P Sport Symposium was held on 26 June 2019, where eight high-quality speakers and 45 selected guests accepted the invitation of Dr. Marco Felder. The guests included lawyers, tax experts, professional trustees, asset managers, representatives of sports agencies, the executive board of the Liechtenstein Olympic Committee, and representatives of sport sponsors such as LGT Bank Ltd. and Rauch Fruchtsäfte GmbH . The conclusion of the talks is clear: Liechtenstein has had an excellent economic link with sport for many years and is in many respects an outstanding location for internationally successful sportspersons and artists.
How did the idea arise to hold the FS+P Sport Symposium? In his professional practice, Dr. Marco Felder noticed that Liechtenstein's economic relationship to sport is considerable. He wanted to address this in a small selected circle. The preparations for the FS+P Sport Symposium also raised the issue of Liechtenstein's attractiveness as a tax location for internationally successful sportspersons and artists compared with other countries.
In this context, the International Fiscal Association (IFA) Liechtenstein held a luncheon on the taxation of sportspersons prior to the FS+P Sport Symposium. A systematic comparison of the tax locations of Germany, Italy, Liechtenstein, Austria, and Switzerland was presented. The speakers included experienced tax experts from these countries, in particular:
- Daniel Blöchle, PwC, Nuremberg
- Dr. Mario Tenore, Maisto e Associati, Milan
- Dr. Vanessa Metzler, Metzler & Partners, Bregenz, and
- Dr. Claudia Suter, Homburger, Zurich
The Liechtenstein component of the tax law debate was presented by Dr. Marco Felder. In contrast to other countries, Liechtenstein does not have any specific tax measures or practice provisions governing the taxation of sportspersons. But Liechtenstein's general attractive tax structure with comparatively low tax rates and the option of tax based on expenditure (lump-sum taxation) need not shy away from direct comparison with other jurisdictions. Details on the taxation of internationally successful sportspersons and artists in Liechtenstein can be found here.
A further interesting insight from the IFA Liechtenstein luncheon is that the advantages of the various jurisdictions can in some cases be combined in a meaningful, profitable, and sustainable way. For example, the Italian lump-sum taxation regime can be supplemented in an ideal way with Liechtenstein asset structuring. The resulting additional added value, asset protection against potential creditors, and guarantee of long-term financial security can have a crucial impact on internationally successful sportspersons and artists over time.
In contrast to the luncheon hosted by IFA Liechtenstein, the FS+P Sport Symposium focused on the economic relevance to Liechtenstein. Among the speakers at the FS+P Sport Symposium were:
- ski racer Tina Weirather, Olympic medal winner and the most beloved representative of Liechtenstein sports
- Volker Schmid, former owner and managing director of the sports agency APF Marketing AG and advisor of Infront Austria and consultant of Infront Sports & Media, Zug
- Dr. Ernst Walch of Walch & Schurti, member of the board of directors of WWP Group for many years,
- Christof Buri, Head of Marketing and Communication at LGT Group
Under the moderation of Dr. Marco Felder, the speakers discussed the various facets of the economic relation to sport in depth and in a refreshing way. The economic links between sportspersons and artists in Liechtenstein are manifold. These links include:
- asset structuring and protection, for example through the use of foundations and trusts
- sportsperson's and artist's companies
- family offices
- asset management
- career planning and consulting
- marketing and communication
- sponsoring
- exploitation of intangible assets such as image and name rights
- philanthropy
- estate planning
In addition, these tax experts briefly and concisely presented the special features of the various tax law regimes with regard to the taxation of internationally successful sportspersons as well as their insights from the IFA Liechtenstein luncheon.
The insights from the discussion are manifold. The participants agreed that the economic links to sport could be further enhanced thanks to the excellent framework conditions in Liechtenstein. While the state plays an important role in ensuring an attractive legal and economic framework and high-quality sport infrastructure, for example, private initiatives and endeavours such as sport sponsorship are of crucial importance. It goes without saying that a relocation of internationally successful sportspersons and artists to Liechtenstein is welcome, and great importance is likewise attached to the further strengthening of the national sport and art scene from within the country.
As a result, Liechtenstein as a sport nation is convincing thanks to its pronounced economic relation to sport, specific expertise, attractive tax and economic framework, central geographical starting position in the heart of Europe, and as a place of residence for internationally successful sportspersons and artists.
Dr. Marco Felder is happy to answer any questions you may have regarding the relocation, structuring, support, or taxation of internationally successful sportspersons and artists.