"The Liechtenstein tax system"

Liechtenstein’s tax system was fundamentally reformed in 2011 to meet international and European requirements while safeguarding the country’s competitiveness. It rests on national law and international agreements. For individuals, the principal taxes are the wealth and income tax and the real estate capital gains tax; value added tax and other indirect levies also apply.

For entities, the principal taxes are the corporate income tax and the real estate capital gains tax. Legal persons—such as companies limited by shares, establishments (Anstalten), foundations, trust enterprises and collective investment undertakings—whose registered office or place of effective management is in Liechtenstein are subject to unlimited tax liability on their worldwide income; those without a domestic seat or effective management are taxed on their Liechtenstein-source income only. Corporate income is taxed at a flat rate of 12.5% on taxable net profit.

In recent years Liechtenstein has concluded numerous double taxation agreements (DTAs) and continues to expand its network. As of September 2023, Liechtenstein has signed DTAs with 24 countries, 21 of which are in force. In most DTAs, Liechtenstein follows international practice and the OECD Model Convention.

Topics in the publication

• Overview of the Liechtenstein tax system
• Taxation of individuals
• Taxation of legal persons
• Other taxes and levies
• Double taxation agreements
• Social insurance law