Recently viewed firm rankings
Overview
A country renowned for its strict banking secrecy laws, Liechtenstein was rocked in 2008 after sensitive data was leaked from LGT Bank in Liechtenstein to Germany, provoking a high-profile investigation into alleged tax fraud in the country. Since the scandal, Liechtenstein has agreed to greater co-operation with US tax authorities and, from 2010, it should be easier for the US to retrieve information about its residents’ bank accounts in Liechtenstein. The turbulent environment has been a cause of concern for many law firms, who anticipate a decline in offshore investment in the country as a result. International pressure may provoke further reforms in the near future.
Although offshore work seems to be on the decline, many firms report a steady flow of contentious work in 2008 and the country has seen several high-profile litigation cases in the past 12 months. As is the trend throughout most of Europe, headline M&A deals are also sparse due to the global credit crisis. Trust law is a central pillar of many practices, and a number of recommended firms are able to offer clients a full service in this area by having their own trust companies, or associated trust companies.
A new foundation law, to be enacted in April 2009, will harmonise the existing law with international standards. Under new regulations, the rights of beneficiaries will be clearly established and private use will be distinguished from charitable foundations. This will provide much needed clarity to the process. The discreet nature of private foundations will be maintained, while the legal status of the founder will be regulated and strengthened.
The legal market in Liechtenstein continues to be dominated by local law firms, the largest being ten-partner Marxer & Partner Attorneys-at-Law. This is in contrast to other European countries, where international heavyweights have had a significant impact on the local market. The only real infiltration seems to be that of a number of Austrian firms that have opened offices in Liechtenstein, namely bmp Rechtsanwälte. Many of the firms consist of five partners or fewer, providing clients with a more personal service. The majority of leading Liechtenstein law firms are based in the capital Vaduz, and to a lesser extent Schaan, Liechtenstein’s most populous city.
Firms in Liechtenstein continue to receive instructions from multi national corporations, banks and financial institutions, from Europe and beyond, as well as receiving instructions to act as local counsel from major international law firms. The majority of firms provide clients with a full corporate service with specialisms including IP, real estate, tax and foundation law. Many firms also focus on litigation, in particular white-collar crime and asset recovery.