"The Liechtenstein tax system"

The Liechtenstein tax system was comprehensively reformed in 2011 in order to meet international and European requirements and ensure Liechtenstein's competitiveness. It is based on national law and international agreements. Taxes for natural persons in Liechtenstein essentially comprise wealth tax, income tax and property gains tax. Value added tax and other indirect taxes are also levied.

Taxes for companies in Liechtenstein essentially comprise income tax and real estate gains tax. Legal entities such as corporations, establishments, foundations, trust companies and undertakings for collective investment that have their registered office or place of effective management in Liechtenstein are subject to unlimited tax liability on their entire income. Legal entities that have neither their registered office nor place of effective management in Liechtenstein are subject to limited tax liability on their domestic income. Income tax is calculated at a uniform tax rate (flat rate) of 12.5 % on the taxable net income.

Liechtenstein has concluded a large number of double taxation agreements (DTAs) in recent years and continues to expand its network of DTAs. Liechtenstein has currently (as of September 2023) signed DTAs with 24 countries, 21 of which are already in force. For most DTAs, Liechtenstein follows standard international practice and the OECD Model Tax Convention.

Topics in the publication

• Overview of the Liechtenstein tax system
• Taxation of natural persons
• Taxation of legal entities
• Other taxes and duties
• Double taxation agreements
• Social security law