Liechtenstein: Private Client

This country-specific Q&A provides an overview of Private Client laws and regulations applicable in Liechtenstein.

  1. Which factors bring an individual within the scope of tax on income and capital gains?

  2. What are the taxes and rates of tax to which an individual is subject in respect of income and capital gains and, in relation to those taxes, when does the tax year start and end, and when must tax returns be submitted and tax paid?

  3. Are withholding taxes relevant to individuals and, if so, how, in what circumstances and at what rates do they apply?

  4. Is there a wealth tax and, if so, which factors bring an individual within the scope of that tax, at what rate or rates is it charged, and when must tax returns be submitted and tax paid?

  5. Is tax charged on death or on gifts by individuals and, if so, which factors cause the tax to apply, when must a tax return be submitted, and at what rate, by whom and when must the tax be paid?

  6. Are tax reliefs available on gifts (either during the donor’s lifetime or on death) to a spouse, civil partner, or to any other relation, or of particular kinds of assets (eg business or agricultural assets), and how do any such reliefs apply?

  7. Do the tax laws encourage gifts (either during the donor’s lifetime or on death) to a charity, public foundation or similar entity, and how do the relevant tax rules apply?

  8. How is real property situated in the jurisdiction taxed, in particular where it is owned by an individual who has no connection with the jurisdiction other than ownership of property there?

  9. Are taxes other than those described above imposed on individuals and, if so, how do they apply?

  10. Is there an advantageous tax regime for individuals who have recently arrived in or are only partially connected with the jurisdiction?

  11. What steps might an individual be advised to consider before establishing residence in (or becoming otherwise connected for tax purposes with) the jurisdiction?

  12. What are the main rules of succession, and what are the scope and effect of any rules of forced heirship?

  13. Is there a special regime for matrimonial property or the property of a civil partnership, and how does that regime affect succession?

  14. What factors cause succession laws to apply on the death of an individual?

  15. How does the jurisdiction deal with conflict between its succession laws and those of another jurisdiction with which the deceased was connected or in which the deceased owned property?

  16. In what circumstances should an individual make a Will, what are the consequences of dying without having made a Will, and what are the formal requirements for making a Will?

  17. How is the estate of a deceased individual administered and who is responsible for collecting in assets, paying debts, and distributing to beneficiaries?

  18. Do the laws of your jurisdiction allow individuals to create trusts, private foundations, family companies, family partnerships or similar structures to hold, administer and regulate succession to private family wealth and, if so, which structures are most commonly or advantageously used?

  19. How is any such structure constituted, what are the main rules that govern it, is there any requirement for registration with or disclosure to any authority or regulator, and what information about the structure is available to the public?

  20. How are such structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?

  21. Are foreign trusts, private foundations, etc recognised?

  22. How are such foreign structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?

  23. To what extent can trusts, private foundations, etc be used to shelter assets from the creditors of a settlor or beneficiary of the structure?

  24. What provision can be made to hold and manage assets for minor children and grandchildren?

  25. Are individuals advised to create documents or take other steps in view of their possible mental incapacity and, if so, what are the main features of the advisable arrangements?

  26. What forms of charitable trust, charitable company, or philanthropic foundation are commonly established by individuals, and how is this done?

  27. What important legislative changes do you anticipate so far as they affect your advice to private clients?