{"id":127238,"date":"2026-01-15T14:07:09","date_gmt":"2026-01-15T14:07:09","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=127238"},"modified":"2026-01-15T14:07:09","modified_gmt":"2026-01-15T14:07:09","slug":"liechtenstein-private-client","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/liechtenstein-private-client\/","title":{"rendered":"Liechtenstein: Private Client"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-127238","comparative_guide","type-comparative_guide","status-publish","hentry","guides-private-client","jurisdictions-liechtenstein"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Gasser Partner Attorneys at Law<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/GP_Logo_Standard.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Gasser Partner Attorneys at Law<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/GP_Logo_Standard.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Private Client laws and regulations applicable in Liechtenstein<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which factors bring an individual within the scope of tax on income and capital gains?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Individuals are subject to wealth and income tax. A distinction is made between limited and unlimited tax liability. Individuals who are resident or habitually resident for more than six months in Liechtenstein are subject to unlimited tax liability in Liechtenstein. Other Individuals are only subject to limited tax liability on their domestic assets and income.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">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?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Income and capital gains of individuals are both covered by income tax. Usually the tax year is identical to the calendar year. Capital gains from holdings in domestic and foreign legal entities are usually exempt from income tax.<\/p>\n<p>Income tax consists of state tax of 8% and a municipal surcharge ranging from 150% to 250% of state tax, resulting in a maximum effective tax burden of approximately 20% to 28%. Progressive tax rates apply, with different schemes for singles, married couples and lone parents.<\/p>\n<p>The filing deadline for tax returns is set annually by the Liechtenstein Tax Authority, typically in March. Individual extensions of up to five months may be requested.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction provide advantageous tax regimes for individuals directly investing in or holding certain types of assets from an income tax or capital gains tax perspective?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Liechtenstein offers a moderate maximum tax burden. The exemption of profit distributions from domestic and foreign legal entities represents a key competitive advantage. In addition, eligible individuals may opt for lump-sum taxation based on living expenses.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are withholding taxes relevant to individuals and, if so, how, in what circumstances and at what rates do they apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Withholding tax applies primarily to individuals with limited tax liability on certain types of domestic-source income, in particular employment-related income. The tax base is generally the domestic gross income, and the applicable withholding rate is determined by the tax authorities, taking into account individual circumstances. Double taxation agreements may provide for relief.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the jurisdiction approach the elimination of double taxation for individuals who would otherwise be taxed in the jurisdiction and in another jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Liechtenstein has concluded 30 double taxation agreements with a broad range of different countries including main economic centers like Germany, the Netherlands, the United Kingdom, Hong Kong and Singapore in order to avoid double taxation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">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?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Wealth tax is levied as an integral part of income tax. It encompasses the entire movable and immovable net wealth of the taxable person. Profits from assets already subject to wealth tax are subsequently exempt from income tax. The wealth tax is calculated as a fictitious interest income of 4% of the net wealth, i.e., the global wealth (for residents) or domestic wealth (for non-residents) minus the associated liabilities, which is subject to regular income tax. The valuation date for the assets is the beginning of the tax year.<\/p>\n<p>Notable exemptions include household and personal effects of up to CHF 26&#8217;400.00 (CHF 52&#8217;800.00 for couples&#8217;) and foreign properties and business premises.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">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?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Liechtenstein has no gift or inheritance tax. However, there is a reporting requirement starting at CHF 10&#8217;000.00.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are tax reliefs available on gifts (either during the donor\u2019s 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?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>N\/A<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the tax laws encourage gifts (either during the donor\u2019s lifetime or on death) to a charity, public foundation or similar entity, and how do the relevant tax rules apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Donations to qualified charities with their seat in Liechtenstein, Switzerland or another EEA member country may be deducted from an individual&#8217;s annual taxable income in an amount of up to 10%. Exempted are individual donations that do not exceed the amount of CHF 100.00.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">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?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Real properties are subject to wealth taxation (see Question 6). The common market value at the beginning of a tax year is applied as calculation base.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have any specific rules in relation to the taxation of digital assets?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Digital assets are taxed under the existing general tax regulations. The legislature pursues a technology-neutral approach, according to which the tax treatment is not linked to the digital form of an asset, but to its economic function and actual content. A token, i.e., that economically corresponds to a security, a claim, or other asset is therefore treated according to the same principles as the corresponding conventional financial instrument.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are taxes other than those described above imposed on individuals and, if so, how do they apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Gains from the sale of domestic real estate are subject to property gains tax at progressive income tax rates, with a basic exemption of CHF 15&#8217;000.00. Instead of the usual municipal tax surcharges, a flat surcharge of 200% is levied.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction provide advantageous special tax regimes for individuals from a wealth tax, inheritance\/estate tax or gift tax perspective?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Liechtenstein offers favourable conditions due to the absence of inheritance and gift taxes, exemptions from wealth tax for certain assets, and the availability of lump-sum taxation for qualifying individuals.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What steps might an individual be advised to consider before establishing residence in (or becoming otherwise connected for tax purposes with) the jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Before a residence is established, individuals should conduct a detailed in-depth analysis of their overall income streams and asset structure. Such analysis should also consider potential future acquisitions in Liechtenstein and the present and future location of sources of income.<\/p>\n<p>Moreover, international aspects of tax and estate planning play an important role. In this context, it is necessary to consider the interplay of having a residence, asset or source of income in Liechtenstein with the other jurisdictions involved, e.g. double taxation agreements or tax information exchange agreements can become relevant in this category.<\/p>\n<p>The details of this issue should be discussed with professional advisers in good time before establishment of a residence is scheduled.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Once an individual has left (and is no longer connected for tax purposes with) the jurisdiction, does the jurisdiction charge any form of exit tax or retain taxing rights over the individual's directly held assets or structures which they created or have an interest in?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Liechtenstein does not levy exit tax.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main rules of succession, and what are the scope and effect of any rules of forced heirship? Do any forced heirship rules apply automatically, or is it necessary for heirs to bring claims to enforce their rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Liechtenstein law balances testamentary freedom with statutory succession and forced heirship rules. If no will exists, intestate succession applies based on family lines (per stirpes). Legal heirs include the spouse or registered partner and the decedent\u2019s relatives, ranked by proximity.<\/p>\n<p>Testamentary freedom is limited by forced heirship, whereas only descendants and the spouse or registered partner are entitled to a compulsory portion, amounting to half of their statutory share. The compulsory portion may be doubled for a spouse who made significant contributions to the accumulation of marital assets. It may be reduced by half if no close personal relationship existed for at least 20 years.<\/p>\n<p>Forced heirship rights do not apply automatically. Entitled heirs must actively assert their claim, which becomes payable in monetary form one year after the testator\u2019s death.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a special regime for matrimonial property or the property of a civil partnership, and how does that regime affect succession?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a general rule, Liechtenstein applies a separation of property regime, under which each spouse retains ownership of their own assets and liabilities.<\/p>\n<p>Spouses may contractually opt for a community of property, either in full or in a mixed form, including arrangements that take effect only upon death. Under a full community of property, each spouse becomes co-owner of the other\u2019s assets, with only one half forming part of the deceased\u2019s estate for succession purposes.<\/p>\n<p>In addition, the surviving spouse is entitled to continue residing in the matrimonial home and to retain household effects as a statutory legacy in advance, unless the testator provides otherwise.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What factors cause the succession law of the jurisdiction to apply on the death of an individual?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Succession law in Liechtenstein is primarily determined by the decedent\u2019s citizenship at the time of death. If the decedent held multiple citizenships, including Liechtenstein citizenship, Liechtenstein law applies. Otherwise, the citizenship with the closest connection is decisive.<\/p>\n<p>Where probate proceedings are conducted before a Liechtenstein court, Liechtenstein law generally applies, unless the testator has validly chosen the law of one of their foreign citizenships or their last habitual residence by will or inheritance contract.<\/p>\n<p>The formal validity of wills and inheritance agreements, including testator capacity, is upheld if the requirements are met under the law of the testator\u2019s citizenship, last habitual residence, or under Liechtenstein law where probate is conducted in Liechtenstein. The same principles apply to the revocation of wills.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">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?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Liechtenstein recognises a reference back to Liechtenstein law, meaning that where the foreign law designated under Liechtenstein conflict-of-law rules refers back to Liechtenstein substantive law, Liechtenstein succession law will apply.<\/p>\n<p>The Princely Court of Justice has jurisdiction over probate matters relating to assets with a sufficient connection to Liechtenstein, in particular immovable property located in Liechtenstein and certain movable assets, depending on the decedent\u2019s citizenship, habitual residence or the enforceability of claims abroad. The Court does not have jurisdiction over real property situated outside Liechtenstein.<\/p>\n<p>Liechtenstein generally takes a restrictive approach to the recognition and enforcement of foreign court decisions regarding inheritance and succession law. A relevant treatiy exist only with Switzerland. Further to that, the Principality is a signatory to the New York Convention on the recognition and enforcement of arbitral awards. There are no specific treaties on the application of inheritance and succession law to which Liechtenstein is a signatory.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">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?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If an individual dies without a will, statutory succession rules apply. A will is advisable where an individual wishes to depart from these rules and implement a tailored succession plan.<\/p>\n<p>A valid will requires testamentary capacity and a clear declaration of intent. Liechtenstein law recognises handwritten wills signed by the testator without witnesses, witnessed wills signed by the testator in the presence of three witnesses, emergency wills made in situations of imminent danger before two witnesses with limited validity, and public wills declared before and deposited with the court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the estate of a deceased individual administered and who is responsible for collecting in assets, paying debts, and distributing to beneficiaries?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The administration of estates is primarily handled by the Princely Court of Justice, which may appoint a curator if the heirs cannot agree on the administration or safeguarding of the estate.<\/p>\n<p>Municipalities support the court as auxiliary bodies, in particular in reporting and registering deaths, preparing inventories and, where necessary, safeguarding the estate.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">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?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Liechtenstein law allows individuals to establish a range of legal structures to hold, manage and regulate succession to private family wealth. The most commonly used and advantageous vehicles are private foundations, trusts, trust enterprises and establishments.<\/p>\n<p>Private foundations are independent legal entities managed by a foundation board for the benefit of designated beneficiaries and are widely used for estate planning, asset protection and long-term wealth preservation. Trusts, which have been fully recognised under Liechtenstein law since 1926, are another well-established vehicle, offering flexible succession planning and strong asset protection. Trust enterprises and establishments provide additional structuring options and are used depending on the specific needs of the family.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are these structures constituted and what are the main rules that govern them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Private foundations may be established either during the founder\u2019s lifetime or upon death by will. They are constituted by a written deed of establishment or testamentary disposition with notarised signature and acquire legal personality upon issuance of the deed. Registration in the Commercial Register is generally declaratory and required only in specific cases, such as charitable foundations or foundations conducting commercial activities. Foundations are managed by a foundation board and may include additional bodies such as supervisory or family councils or a protector.<\/p>\n<p>Trusts are created by a written trust deed between settlor and trustee, or by unilateral appointment accepted by the trustee in writing. Trusts do not have legal personality; the trustee holds legal title to the trust assets and manages them for the benefit of the beneficiaries in accordance with the trust deed. Trusts exceeding a duration of twelve months must be registered or deposited with the Commercial Register, which has declaratory effect. Liechtenstein trust law does not recognise a rule equivalent to Saunders v Vautier and imposes no rule against perpetuities.<\/p>\n<p>Establishments are constituted by signing articles of association and acquire legal personality upon registration in the Commercial Register. They are governed by the holder of the founder\u2019s rights, with day-to-day management typically delegated to a board of directors. Liechtenstein law also recognises foundation-like establishments without founder\u2019s rights, which are commonly used for asset protection purposes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the registration requirements for these structures and what information needs to be made available to the relevant authorities? To what extent is that information publicly available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Registration requirements and public disclosure depend on the type of structure and the chosen form of registration or deposit.<\/p>\n<p>Private-benefit foundations and trusts are generally not required to be fully registered in the Commercial Register. In practice, only a notification of formation (for foundations) or a deposited trust deed (for trusts) is filed. Publicly accessible information is limited to basic structural details, while the identity of founders and beneficiaries is not disclosed. Deposited trust deeds are not publicly accessible.<\/p>\n<p>Establishments must be registered in the Commercial Register. Public extracts show core information such as name, seat, purpose and governing bodies, but not the holder of founder\u2019s rights or beneficiaries.<\/p>\n<p>In parallel, Liechtenstein maintains a central register of beneficial owners in line with AML requirements. This register is not publicly accessible and may only be consulted by competent authorities and, under strict conditions, by obliged entities such as banks. Discretionary beneficiaries are not individually disclosed; an abstract description of the beneficiary class is sufficient.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are such structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foundations and trusts are subject to specific tax regimes under Liechtenstein tax law, depending on their structure and characteristics.<\/p>\n<p>Foundations with their seat or effective management in Liechtenstein are generally taxed as separate tax subjects at the corporate income tax rate of 12.5%. Pure asset-management foundations may qualify as a Private Asset Structure (PVS), meaning that they do not carry out commercial activities and are subject to a flat annual tax of CHF 1,800 instead of regular income taxation. Charitable foundations may be fully tax exempt. Where the founder retains revocation rights, assets and income are attributed to the founder for tax purposes. Distributions from foundations are treated as tax-free income under Liechtenstein tax law for both resident and non-resident beneficiaries; the tax treatment in the beneficiaries\u2019 country of residence is not affected.<\/p>\n<p>Trusts are generally subject to a minimum annual flat tax of CHF 1,800 under Liechtenstein tax law. The tax treatment of settlors and beneficiaries depends on whether the trust is revocable or irrevocable and on the nature of the beneficiaries\u2019 interests. In revocable trusts, assets and income are attributed to the settlor for tax purposes. In irrevocable trusts, taxation may arise at beneficiary level depending on the structure of the trust, while discretionary beneficiaries are generally not subject to wealth tax unless surrogate wealth taxation is elected. Distributions from trusts are tax-free under Liechtenstein tax law; any taxation in the beneficiaries\u2019 or settlors\u2019 jurisdiction of residence remains unaffected. Remuneration of trustees, directors and board members is taxed as ordinary income or, where applicable, at corporate income tax level.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign trusts, private foundations, etc recognised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Trusts and foundations established under most foreign jurisdictions are recognised in Liechtenstein.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are such foreign structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Liechtenstein tax law does not distinguish between foreign and domestic structures.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can trusts, private foundations, etc be used to shelter assets from the creditors of a settlor or beneficiary of the structure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Trusts and private foundations are well-established and widely used asset protection instruments under Liechtenstein law. As a general principle, once assets are validly transferred from the settlor\u2019s or founder\u2019s estate to a foundation as a separate legal entity or to a trustee as legal owner, such assets no longer form part of the settlor\u2019s or founder\u2019s personal liability pool and are, in principle, shielded from creditor claims.<\/p>\n<p>Asset transfers may only be challenged within clearly defined statutory clawback periods, in particular where transfers were made without consideration, during the settlor\u2019s financial distress, or with intent to prejudice creditors. These periods generally commence only once the settlor has fully relinquished economic control over the assets. As long as substantive rights, such as revocation or amendment rights, are retained, creditors may still contest the transfer.<\/p>\n<p>Liechtenstein courts recognise the doctrine of abuse of rights only in exceptional circumstances. In rare cases of manifest misuse of a structure to evade creditors, courts may disregard the legal separation between the settlor and the structure. However, such \u201creverse piercing\u201d is applied very restrictively and does not call into question the general validity of trusts or foundations.<\/p>\n<p>Founders\u2019 or settlors\u2019 rights may, in principle, be subject to attachment. However, enforcement privilege clauses combined with additional approval mechanisms (e.g. the involvement of a protector) may significantly limit creditor access. Discretionary beneficiaries are generally protected, as creditors may only seize assets that have already been distributed to them. Similar protection can be extended to entitled beneficiaries through appropriate provisions in the foundation or trust deed.<\/p>\n<p>Asset protection is further strengthened by jurisdictional limitations in respect of foreign discretionary beneficiaries, as well as by Liechtenstein\u2019s traditionally cautious approach to the recognition and enforcement of foreign judgments.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What provision can be made to hold and manage assets for minor children and grandchildren?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Assets for minor children or grandchildren may be managed under the statutory regime of parental custody, under which parents administer the child\u2019s assets subject to court approval for extraordinary transactions.<\/p>\n<p>Alternatively, parental administration may be excluded for specific gifts or bequests, in which case the court appoints a separate administrator to manage the assets during the child\u2019s minority.<\/p>\n<p>For long-term and more flexible solutions, private family foundations or trusts are commonly used. These structures hold legal title to the assets and allow tailored governance and distribution rules, significantly reducing court involvement. The age of majority in Liechtenstein is 18.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">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?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Individuals are generally advised to put in place a health care proxy to ensure representation in the event of mental incapacity.<\/p>\n<p>A health care proxy is a power of attorney that becomes effective upon loss of capacity and authorises a designated agent to act on the principal\u2019s behalf in the matters expressly specified in the document. It must comply with strict formal requirements, including handwritten execution or, alternatively, attestation before witnesses or certification by an attorney or the court.<\/p>\n<p>Enhanced formalities apply to proxies covering medical decisions, permanent changes of residence or extraordinary asset management, which must be executed before an attorney or the court. Certain persons, such as staff of care institutions treating the principal, are excluded from acting as agents.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What forms of charitable trust, charitable company, or philanthropic foundation are commonly established by individuals, and how is this done?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Charitable activities are most commonly carried out through charitable foundations or charitable trusts. Depending on the circumstances, trust enterprises and establishments may also be used as philanthropic vehicles.<\/p>\n<p>Charitable foundations are subject to supervision by the Foundation Supervisory Authority and mandatory annual audits. Charitable trusts are currently not subject to comparable supervision, although regulatory developments in this area are under consideration. While differing in purpose, the basic legal structure of charitable foundations and trusts largely mirrors that of private-benefit vehicles.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the jurisdiction's approach to information sharing with other jurisdictions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Liechtenstein actively participates in international information exchange and has concluded numerous tax information exchange agreements. At the same time, the legal framework seeks to balance international cooperation with the protection of privacy and data protection rights, including safeguards for individuals not directly concerned by information requests.<\/p>\n<p>In addition, Liechtenstein has implemented the OECD standard on the automatic exchange of information in tax matters, which has been in force since 2016 and has been updated on several occasions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What important legislative changes do you anticipate so far as they affect your advice to private clients?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>At present, no legislative developments are anticipated that would materially impact advice to private clients.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3830<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/127238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=127238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}