Since the codification of its foundation law in 1926, Liechtenstein has been one of the world’s leading jurisdictions in this field. In 2009, a reform entered into force which essentially incorporated established case law into statutory law, thereby creating greater legal certainty.

The Liechtenstein foundation is, for good reason, the most well-known Liechtenstein legal structure and is used by numerous wealthy families from around the world to preserve and protect their family wealth for generations. The wide range of structuring possibilities, the high degree of privacy and the favourable tax framework are the reasons for the success and popularity of the Liechtenstein foundation. The private-benefit Liechtenstein foundation is suitable not only for asset management, but also as a holding vehicle for commercially active family businesses or groups of family businesses.

In addition to private-benefit foundations, charitable foundations can also be established under Liechtenstein foundation law. Charitable foundations are subject to mandatory supervision by the foundation supervisory authority, whereas private-benefit foundations may voluntarily submit to such supervision through a corresponding provision in their statutes.

Read more about Liechtenstein Foundations.
Read more about the Taxation of Liechtenstein Entities.

Since the codification of its foundation law in 1926, Liechtenstein has been one of the world’s leading jurisdictions in this field. In 2009, a reform entered into force which essentially incorporated established case law into statutory law, thereby creating greater legal certainty.

The Liechtenstein foundation is, for good reason, the most well-known Liechtenstein legal structure and is used by numerous wealthy families from around the world to preserve and protect their family wealth for generations. The wide range of structuring possibilities, the high degree of privacy and the favourable tax framework are the reasons for the success and popularity of the Liechtenstein foundation. The private-benefit Liechtenstein foundation is suitable not only for asset management, but also as a holding vehicle for commercially active family businesses or groups of family businesses.

In addition to private-benefit foundations, charitable foundations can also be established under Liechtenstein foundation law. Charitable foundations are subject to mandatory supervision by the foundation supervisory authority, whereas private-benefit foundations may voluntarily submit to such supervision through a corresponding provision in their statutes.

Read more about Liechtenstein Trusts.
Read more about the Liechtenstein Trust Law Reform 2026.
Read more about the taxation of Liechtenstein legal entities.

The legal form of the Establishment is a Liechtenstein-specific structure with no equivalent in other jurisdictions. Its defining characteristic is its flexibility in design. Depending on the founder’s requirements, an Establishment can be structured either like a foundation or like a corporate entity. This makes it suitable both for estate planning and asset protection as well as for commercial purposes. Like other legal forms, Establishments benefit from the favourable tax framework in Liechtenstein (i.e. they are either subject to income tax at a rate of 12.5% or to a flat tax of CHF 1'800 per annum if the Anstalt qualifies as a private wealth structure).

Read more about Liechtenstein Establishments.
Read more about the taxation of Liechtenstein legal entities.

The joint-stock company is a popular Liechtenstein legal form. It can be used for holding or commercial purposes. In particular, companies providing financial services regulated by the Liechtenstein Financial Market Authority (FMA) are often structured as joint-stock companies.

The corporate bodies of a joint-stock company include the board of directors, the general meeting and the auditors. Shares may be issued as registered or bearer shares, although the latter must be immobilised by law and are subject to transparency requirements monitored by a custodian. Joint-stock companies conducting commercial activities in Liechtenstein require a business licence or a licence from the Liechtenstein FMA if they carry out regulated financial services activities.

Due to Liechtenstein’s membership of the European Economic Area, various EU company law directives have been implemented into Liechtenstein law in relation to the joint-stock company.

A joint-stock company is generally subject to income tax at a rate of 12.5%. If it qualifies as a private wealth structure, it is subject to an annual flat tax of CHF 1'800.

Read more about Liechtenstein joint-stock companies.
Read more about the taxation of Liechtenstein legal entities.

Liechtenstein is not only the only jurisdiction in continental Europe to have adopted a comprehensive codified form of the Anglo-Saxon common law trust, but also provides, in the form of the Liechtenstein trust enterprise (Treuunternehmen), also referred to as a Liechtenstein trust reg., its own interpretation of the business trust or Massachusetts trust known in common law jurisdictions.

The Liechtenstein trust enterprise is highly flexible, as it can be structured either similarly to a foundation, similarly to a corporate entity, or as a hybrid form, depending on the settlor’s requirements. Due to this flexibility, it is suitable both for estate planning and asset protection as well as for commercial activities.

Read more about Liechtenstein trust enterprise.
Read more about the taxation of Liechtenstein legal entities.

In contrast to other European countries, the limited liability company (GmbH) historically played a rather minor role in Liechtenstein. As part of a reform, the Liechtenstein government decided to improve the legal framework for GmbHs and thereby make this legal form more attractive for SMEs as well as start-ups. As a result, the key features of the GmbH today include (i) a simplified incorporation process, (ii) a reduced minimum share capital of CHF/EUR/USD 10'000, and (iii) the option to restrict the transferability of shares.

Read more about Liechtenstein limited liability companies.
Read more about the taxation of Liechtenstein legal entities.

International

Liechtenstein's tax regime complies with OECD standards (https://www.oecd.org/tax/beps/).

Liechtenstein participates in the automatic exchange of information (AEOI) and applies the Common Reporting Standard (CRS) (https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/crs-by-jurisdiction/).

Liechtenstein has signed a Model 1 agreement with the United States for the implementation of FATCA (Foreign Account Tax Compliance Act) (https://www.treasury.gov/resource-center/tax-policy/treaties/pages/fatca.aspx).

Liechtenstein has concluded double taxation agreements (DTAs) and tax information exchange agreements (TIEAs) with various other countries (https://www.llv.li/serviceportal2/amtsstellen/steuerverwaltung/int-abkommen/int_uebersicht_dba_tiea_engl.pdf).

National

Legal entities (such as foundations, Establishments, trust enterprises, joint-stock companies or limited liability companies) are subject to income tax at a rate of 12.5%. Dividends, capital gains and liquidation proceeds derived from the disposal of participations are generally not included in taxable income (unless anti-abuse rules apply).

Legal entities qualifying as private wealth structures (PVS) and trusts are subject to an annual flat tax of CHF 1'800.

Distributions from Liechtenstein legal entities are not subject to withholding tax.

Read more about the taxation of Liechtenstein legal entities.