1. Business environment and advantages as business location

Liechtenstein continues to distinguish itself as a highly stable, innovation-driven, and internationally connected jurisdiction, maintaining a global reputation built upon the pillars of political continuity and legal certainty. Its enduring success as a financial and industrial hub is underpinned by an exceptional ability to adapt swiftly to shifting global developments while preserving a core commitment to economic diversification. These characteristics ensure that the Principality remains a premier destination for sophisticated investors who require a rare combination of long-term security and forward-thinking regulatory innovation.

Geographically and economically situated between Switzerland and Austria, Liechtenstein benefits from a unique dual integration that offers unparalleled market access. As a long-standing member of the European Economic Area (EEA), the country participates fully in the European Union’s single market, allowing for the seamless "passporting" of financial services and goods across Europe. Simultaneously, it maintains a deep-rooted customs and currency union with Switzerland, utilizing the Swiss franc as its official legal tender. This strategic positioning provides a stable monetary environment and frictionless access to Swiss markets, serving as a primary driver of attractiveness for international investors operating within the financial services, private wealth management and high-tech industrial sectors.

The business environment in Liechtenstein is characterized by a high degree of administrative efficiency and a commitment to international transparency standards. Investors benefit from a lean and responsive governmental apparatus where short decision-making timelines are the norm rather than the exception. This operational agility is complemented by a robust AAA sovereign credit rating, reflecting a debt-free national budget and a resilient fiscal policy. Furthermore, the jurisdiction offers an exceptionally competitive tax regime, headlined by a flat corporate income tax rate of 12.5% and a lack of withholding tax on dividends, interest, and royalties. Dividends, capital gains and liquidation proceeds derived from the disposal of participations are generally not included in taxable income (unless anti-abuse rules apply).

The nation’s financial centre is highly developed, with a specific expertise in private banking and complex asset structuring that serves a global clientele. This traditional strength is now bolstered by a pioneering legal framework designed to foster the digital economy. By providing legal certainty for blockchain technology and digital assets through dedicated legislation, Liechtenstein has established itself as an innovation-friendly laboratory for the future of finance. When combined with its close economic ties to the Swiss financial system, the Principality offers a comprehensive and secure infrastructure for capital preservation and commercial expansion.

2. Business structures

Liechtenstein’s legal framework, primarily governed by the Liechtenstein Persons and Companies Act (PGR), provides a sophisticated and versatile array of legal entities and structures designed to meet the diverse needs of international commercial enterprises and private wealth structures alike.

For the purposes of long-term succession planning, asset protection, and philanthropy, the Foundation (Stiftung) remains the cornerstone of Liechtenstein’s private wealth sector. It allows a founder to dedicate specific assets to a defined purpose, effectively shielding them from external claims while ensuring that the transition of wealth across generations is handled with precision and legal certainty.

Furthermore, Liechtenstein distinguishes itself as the only civil law jurisdiction in mainland Europe to have successfully integrated and codified the Anglo-Saxon concept of the Trust (Treuhänderschaft) into its statutory law. This provides a robust and familiar framework for fiduciary arrangements, allowing common law practitioners and international clients to utilize a trust structure within a stable, Continental European legal environment.

Among the most prominent forms is the Public Limited Company (Aktiengesellschaft; AG), which serves as the standard corporate form for substantive commercial operations, international trading, and banking activities. It is favoured by investors for its clear separation of assets and its alignment with international corporate standards, making it an ideal vehicle for large-scale business ventures.

For smaller to medium-sized enterprises or those seeking a more streamlined corporate governance structure, the Limited Liability Company (Gesellschaft mit beschränkter Haftung; GmbH) offers a comparable level of protection for its members but with slightly lower complexity and capital requirements, maintaining its position as a practical choice for localized or closely-held businesses.

A unique and highly flexible feature of the Liechtenstein legal landscape is the Establishment (Anstalt). This hybrid entity occupies a middle ground between a company and a foundation; it can be structured with or without members and is frequently employed for both active commercial trade and passive asset-holding purposes, offering a bespoke level of adaptability rarely found in other jurisdictions.

Collectively, these structures are globally recognized for their inherent flexibility and the high degree of confidentiality they afford - provided always in compliance with modern international transparency and reporting standards. This unique combination of legal innovation and historical stability makes Liechtenstein a premier hub for complex cross-border planning and the long-term preservation of capital.

3. Key legislative developments and changes (2025-2026)

a. Markets in Crypto-Assets Regulation (MiCAR) and the Digital Asset Pivot

Liechtenstein was among the first in Europe to introduce a comprehensive legal framework for blockchain-based business models. The Token and Trusted Technology Service Provider Act (TVTG), known as the Blockchain Act, has since 2020 provided crypto-asset service providers with a legally certain environment in which to operate.

The most important recent legislative development for Liechtenstein’s FinTech sector is the full implementation of MiCAR (June 2026 deadline). While the TVTG provided an early domestic framework, MiCAR now introduces uniform standards across the EU and EEA for issuance and public offering of crypto-assets, the admission of such assets to trading, and the licensing of certain service providers (CASPs). Liechtenstein has adapted to this change early on and transposed MiCAR into national law through the EEA-MiCA Implementation Act (EWR-MiCA-DG) even before the regulation became applicable across the wider EEA.

Despite MiCAR’s entry into force, the TVTG remains applicable in Liechtenstein. The country’s legal architecture is thus defined by a dual regime: MiCAR governs activities harmonised at the EU/EEA level, while the TVTG continues to apply in areas outside MiCAR’s scope, such as non-fungible tokens (NFTs) and the civil law aspects of tokens. Crucially, MiCAR leaves questions of property, transfer, and enforceability of rights in crypto assets to national legislators. Liechtenstein, however, had already addressed these issues comprehensively under the TVTG, providing legal certainty in matters of ownership and transfer of crypto-assets. As a result, Liechtenstein continues to enjoy a distinct regulatory advantage within the European Market.

b. Banking & Governance

Revised Banking Act (February 2025): New regulations regarding internal governance, risk management, and the supervision of banking groups entered into force, modernizing Liechtenstein’s financial regulatory framework. The Act provides the Financial Market Authority (FMA) with expanded powers to supervise financial holding companies and mixed financial holding companies directly. This ensures that risks generated at the group level - often across borders - are identified and mitigated before they can impact the stability of the individual Liechtenstein subsidiary. By integrating these heightened European standards into domestic law, Liechtenstein reinforces its reputation as a highly stable, "white-list" jurisdiction, offering international clients a banking environment that combines the traditional benefits of Swiss-style stability with advanced European financial safety nets.

Digital Operational Resilience Act (DORA): The Act aims to strengthen the information and communication technology (ICT) security of financial entities and ensure that the financial sector in Europe remains resilient in the event of severe operational digital disruption. DORA harmonises the rules relating to digital operational resilience for the financial sector. The Act of 5 December 2024 implementing Regulation 2022/2554 (LGBl 2025.121) entered into force on 1 February 2025. This law transposes DORA’s requirements into Liechtenstein law.

c. International Tax

Global Antitrust Base Erosion (GloBE) (Pillar Two) 2026 Updates: The GloBE Rules, representing Pillar Two of the OECD/G20 project, have introduced a shift for Liechtenstein’s fiscal landscape. While the jurisdiction maintains a competitive domestic corporate income tax rate of 12.5%, companies belonging to multinational groups with annual consolidated revenues exceeding EUR 750 million have been subject to a minimum effective tax rate of 15% since 1 January 2024. Building on this framework, the 2026 GloBE Amendment introduces the mandatory and standardized GloBE Information Return (GIR). This update transitions the focus from initial implementation to rigorous compliance, requiring eligible entities to utilize a uniform reporting format to ensure consistency and transparency in the calculation of top-up taxes across all relevant jurisdictions.

d. Corporate Mobility

Cross-Border Mobility (2025/2026): The implementation of the EU Mobility Directive (2019/2121) into the PGR now provides a clear, harmonized legal path for cross-border conversions, mergers, and divisions within the EEA. The implementation of this Directive also introduces specific statutory provisions for both cross-border and purely domestic spin-offs and de-mergers, thus creating a coherent and uniform legal framework for corporate transactions. This constitutes an important legislative step since, in the past, spin-offs and de-mergers were permitted in practice but could not rely on specific rules of statutory law.

While cross-border conversions were already permitted in the past, the new rules impose a more formalised procedure due to EEA legal requirements, although this only applies to conversions within the EEA; the rules applicable on conversions to Switzerland or other third countries are likely to remain unchanged. Similarly, the existing rules on cross-border mergers will be further harmonised, with greater formalism offset by numerous procedural simplifications.

Overall, the implementation of the Directive increases legal certainty and transparency in the area of cross-border corporate restructuring. Despite certain procedural adjustments, the new legal framework gives companies greater planning reliability for cross-border transformation processes.

e. Sustainability

CSRD Implementation: Liechtenstein, through its membership in the EEA, is transposing the Corporate Sustainability Reporting Directive (CSRD) (2022/2464). For large Liechtenstein entities, the CSRD is not merely an environmental regulation; it is a corporate law transformation. It requires companies to disclose information according to the European Sustainability Reporting Standards (ESRS), covering a broad spectrum of Environmental, Social, and Governance (ESG) metrics.

f. Private Wealth – the Trust Law Reform

The "Optimization of Trust Law" reform package represents the most significant structural adjustment to the trust provisions of the PGR in decades. Scheduled to enter into force on 1 July 2026, with full implementation required by 31 December 2027 (the end of the transitional period), the legislation introduces a new paradigm of internal governance designed to harmonize the traditional flexibility of the Liechtenstein trust with modern requirements relating to governance, information rights, and oversight.

The centerpiece of this legislation is the introduction of the person entitled to information (Informationsberechtigter), a mandatory functionary for private trusts charged with ensuring compliance with the trust documentation. This innovation allows Liechtenstein to eschew the mandatory "beneficiary principle" of Anglo-Saxon law - where beneficiaries hold inherent enforcement rights - in favour of a model where a designated person, chosen by the settlor, acts as the guardian of the trust’s integrity.

Furthermore, the reform clarifies the distinction between private and charitable trusts, subjecting the latter to state supervision while preserving the private nature of the former.

4. Economy

Liechtenstein’s economy is notable for its resilience, diversification and strong export orientation. Despite its limited domestic market, the country has developed a highly competitive industrial base and a sophisticated financial services sector, both of which contribute significantly to its economic performance.

The use of the Swiss franc as legal tender plays a central role in maintaining monetary stability. As a globally recognised safe-haven currency, the Swiss franc provides protection against volatility and inflation, which is particularly valuable in times of economic uncertainty. Although a strong currency can present challenges for exporters, Liechtenstein’s companies have generally adapted through innovation, specialisation and a focus on high-value products.

Inflation in Liechtenstein has remained relatively moderate compared to many other European economies. While recent years have seen some upward pressure due to global factors such as energy prices and supply chain disruptions, these effects have been mitigated by prudent fiscal and monetary policies. The overall inflation environment remains stable, which supports both consumer confidence and long-term investment planning.

The industrial sector is a key pillar of the economy and is characterised by a high degree of specialisation. Liechtenstein is home to a number of globally successful companies operating in fields such as precision engineering, dental technology, medical devices and advanced manufacturing. These companies often occupy niche markets and are highly export-oriented, with strong links to both European and global markets.

The financial services sector is equally important and has long been a cornerstone of Liechtenstein’s economy. The country has established itself as a leading centre for private banking, asset management and fiduciary services. In recent years, the sector has undergone significant transformation in response to international regulatory developments and changing client expectations. There has been a clear shift towards greater transparency, compliance and sustainability, which has strengthened the sector’s long-term viability.

Emerging sectors such as fintech and blockchain are also gaining prominence. Liechtenstein’s progressive regulatory approach has created a supportive environment for innovation in these areas, attracting both established firms and start-ups. This diversification is likely to play an increasingly important role in the country’s economic development

5. Current opportunities & future prospects

Liechtenstein offers a range of opportunities for investors across multiple sectors, reflecting both its traditional strengths and its capacity for innovation. One of the most significant areas of opportunity lies in financial services and private wealth structuring. The jurisdiction continues to attract high-net-worth individuals, family offices and institutional investors seeking stable, compliant and tax-efficient structures. While the system is liberal, it adheres strictly to international transparency standards and anti-money laundering (AML) standards.

The blockchain and digital assets sector represents another area of considerable potential. Liechtenstein’s Token and TVTG provides a comprehensive legal framework for tokenised assets and related services. This has positioned the country as a pioneer in the field and has attracted a growing number of businesses involved in digital finance. The ability to operate within a clear and predictable regulatory environment is a key advantage in this rapidly evolving sector.

Sustainability is also becoming an increasingly important driver of investment. Liechtenstein’s financial sector is actively integrating ESG considerations into its operations, and there is growing demand for sustainable investment products. This trend is likely to continue, supported by regulatory developments at both the European and global levels.

The industrial sector continues to offer opportunities in areas such as automation, advanced manufacturing and medical technology. Liechtenstein’s companies are known for their innovation and quality, and there is significant potential for further growth, particularly in high-tech and specialised fields.

Looking ahead, Liechtenstein is well positioned to maintain its competitive edge. Its ability to combine stability with innovation, along with its strong international integration, provides a solid foundation for future growth. While global challenges such as economic uncertainty and regulatory complexity are likely to persist, Liechtenstein’s track record suggests that it will continue to adapt effectively

6. Legal system

Liechtenstein’s legal system is based on civil law principles, with influences from both Austrian and Swiss law. It is characterised by a high degree of clarity, consistency and predictability, which are essential for business and investment.

The judiciary is independent and offers a three-tier court system: the District Court (Landgericht), the Appeals (Obergericht), and the Supreme Court (Oberster Gerichtshof). For constitutional matters, the Constitutional Court (Staatsgerichtshof) provides final oversight.

Arbitration is fully adopted and well recognised in Liechtenstein. The country is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The Liechtenstein Rules of Arbitration offer a confidential and efficient alternative to public litigation.

For investors, one of the key advantages of Liechtenstein’s legal system is the level of legal certainty it provides. Laws are clearly defined and consistently applied, and there is a strong emphasis on the protection of property rights and contractual obligations. This contributes to a stable and reliable business environment.

At the same time, investors should be mindful of the jurisdiction’s regulatory requirements, particularly in areas such as financial services and AML. Compliance is taken seriously, and businesses are expected to adhere to both domestic and international standards. Engaging experienced legal advisors is therefore essential to ensure that all requirements are met and that structures are implemented effectively.

7. Foreign investment restrictions

The process of investing in Liechtenstein is generally straightforward. Investors may establish new entities or structures, acquire existing businesses or set up holding structures, depending on their strategic objectives. Registration or deposition with the Liechtenstein Commercial Register and compliance with AML requirements are essential steps, and certain activities may require regulatory licences. However, the overall process is efficient and predictable, particularly when supported by experienced local advisors.

The regulatory environment is modern and transparent, with a strong emphasis on compliance and investor protection. The FMA plays a central role in supervising financial institutions and ensuring adherence to regulatory standards. Other authorities are responsible for specific areas such as company registration and administrative oversight.

Direct investment is typically straightforward. The country maintains an open and welcoming approach to foreign investment, with relatively few restrictions in most sectors, although certain sectors may require licences or approvals. Basically, there are no restrictions on the acquisition of participations or stakes in a privately held Liechtenstein company (except for certain regulatory approval requirements of the FMA involving Liechtenstein licensed financial service providers).

Any transfer of ownership in Liechtenstein real estate properties is restricted by law and requires the advance approval of the Office of Justice. This applies not only to the direct transfer of ownership in a real estate property but also to an indirect acquisition by way of acquiring shares in a Liechtenstein real estate company. Under the applicable statutory provisions, such transactions are null and void if the required approval from the Office of Justice is not obtained. Consequently, particular focus on these requirements is necessary during the legal due diligence phase of an acquisition or transformation.

Further restrictions exist for the acquisition of shares in state-owned or state-controlled Liechtenstein companies. Also, as a result of the conflict between Russia and Ukraine, further sanctions were enacted to restrict investments by certain Russian investors.

Apart from sanction controls, Liechtenstein does not impose relevant foreign exchange controls, which facilitates cross-border transactions and capital flows. Capital and profits can be freely repatriated in any currency. The use of the Swiss franc further enhances stability and simplifies financial operations.

8. What to know before investing

Investors considering Liechtenstein should take a strategic and well-informed approach. One of the most important considerations is the selection of the appropriate legal structure, as this will depend on the investor’s objectives, whether they relate to commercial operations, asset holding or wealth planning. The jurisdiction offers a high degree of flexibility in this regard, but careful planning is essential.

Every Liechtenstein legal entity must appoint at least one board member who is a resident of an EEA/EFTA state and possesses specific professional qualifications (usually a lawyer or fiduciary). Legal persons are exempt from the obligations to appoint such so called 180a person, which, under the Liechtenstein Business Act or another special law, are required to a have a special manager or which are supervised by the government, a municipality, or another authority.

Compliance with regulatory requirements is another key factor. Liechtenstein’s commitment to international standards means that businesses must adhere to robust AML, transparency and sustainability obligations. While these requirements may increase administrative complexity, they also enhance the credibility and long-term stability of the jurisdiction.

As a member state of the EEA, Liechtenstein is subject to the European antitrust/merger control regime as applicable in the EU/EEA. As a consequence, the pertinent EU/EEA Regulations and thresholds also apply in relation to Liechtenstein companies, in principle. Liechtenstein does not have any additional national/domestic antitrust or merger control legislation.

Engaging advisors at an early stage is highly recommended. Experienced legal and financial professionals can provide valuable guidance on structuring, regulatory compliance and market entry, helping investors to navigate the local environment effectively.

In summary, Liechtenstein continues to offer a unique and compelling proposition for international investors. Its combination of political stability, economic strength, legal certainty and regulatory innovation sets it apart from many other jurisdictions. The country’s ability to balance tradition and innovation is particularly evident in its approach to financial services and digital assets, where it has successfully adapted to changing global dynamics while maintaining its core strengths.

As the global economic environment becomes increasingly complex, Liechtenstein’s resilience and adaptability are likely to become even more valuable. For investors seeking a stable, transparent and forward-looking jurisdiction, Liechtenstein remains an excellent choice.

9. About Schurti Partners Attorneys at Law Ltd

Schurti Partners Attorneys at Law Ltd is a Liechtenstein-based full-service law firm with a strong focus on international matters. The firm's lawyers are trained and qualified in several jurisdictions (Liechtenstein, New York, California, England and Wales, Ireland, Switzerland, Germany and Austria), and have gained work experience abroad in some of the most prestigious international law firms. The firm was founded in 1991 as a partnership and incorporated in 2015. Over the years, it has grown to become one of the largest and most renowned law firms in Liechtenstein. Schurti Partners has established a solid track record of supporting clients with businesses and/or assets across the world, drawing on the support of the firm’s well-established networks of leading independent law firms based in other jurisdictions. Today, it is also one of the leading Liechtenstein law firms in the area of corporate, finance, dispute resolution and private client matters

Disclaimer: This overview is a summary aimed at giving an initial and basic understanding. It does not constitute specific legal advice. It does not deal with specific detailed situations nor exceptions to general principles. The legal position may change. No liability is accepted in ¬¬respect of the contents nor consequences arising from reliance thereon.