Legal Market Overview
The Principality of Liechtenstein, a landlocked country bordering Switzerland and Austria, continues to find favour with foreign investors after securing white-listed status from the OECD in 2009. It remains a major hub for financial services, with its 12.5% headline corporate tax rate, direct access to the European single market and its customs union with Switzerland among its key attributes.
The country’s increasing focus on banking transparency has not significantly harmed its finance industry; in 2017, assets under management of Liechtenstein banks increased by 25% year-on-year.
Liechtenstein is well known for its business-friendly and agile regulatory environment, which equips it to respond quickly to new market developments. In August 2018, the government published the consultation report on its recently announced Blockchain Act, which aims to position the country as a leading jurisdiction for cryptocurrency and blockchain matters. The new law will provide greater security and legal certainty around the development of the ‘token economy’.