Overview
Traditionally a bastion of banking secrecy, Liechtenstein’s role as a tax haven has recently come under substantial international scrutiny. Consequently, the country has agreed to increase the transparency of the financial sector and to exchange more tax data with other jurisdictions. Most recently, the government has also given the green light for the adoption of a bill implementing the comprehensive reform of a tax system that had not experienced any major change for almost 50 years. Low tax rates will still remain in place, however, there will be increased levels of transparency and a simplification of the law. Modernisation has indeed been a theme in recent years, with these reforms following quickly off the back of the revision of the country’s foundation law in April 2009.
Such legislative changes have, of course, led to a significant amount of advisory work for the law firms in the region. And while M&A transactional work remains slightly depressed, lawyers continue to report a spike in litigation, particularly in relation to financial services matters.
On the whole, Liechtenstein’s legal system remains largely influenced by those of its neighbouring countries, Austria and Switzerland. Local law firms still dominate the legal market and handle a significant volume of international as well as domestic work. Dr Dr Batliner & Dr Gasser, Batliner Wanger Batliner Rechtsanwälte AG, Marxer & Partner Attorneys-at-Law and Walch & Schurti continue to dominate a legal market which has, nevertheless, experienced considerable lateral movement over the past 12 months. Most notable was the departure of Johannes Grabher and Johannes Schallert from Wanger Advokaturbüro to form advocatio Rechtsanwälte Grabher Schallert.