Starting a business in
🇱🇮Liechtenstein
Checked November 4, 2026 · How we score
Corporate tax
12.5%
Top income tax
22.4%
Setup from
$5,000
all-in, first year
Time to form
21 days
visit usually needed
Taxes in Liechtenstein
| Corporate income tax | 12.5% Flat 12.5% on profit, with a minimum annual tax of CHF 1,800. A notional interest deduction of 4% on adjusted equity can lower the effective rate to well below 12.5% for capital-heavy companies. |
|---|---|
| Personal income tax (top) | 22.4% National income tax is progressive up to 8%, with municipal surcharges of 150-250% bringing the combined top marginal rate to about 22.4%. Wealth tax of about 0.1% also applies to individuals. |
| Tax system | Worldwide income |
| Capital gains tax | 0%No capital gains tax for individuals on movable assets; real-estate gains are taxed separately. |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | 8.1% |
| Social security | Social security contributions (AHV/IV/FAK) are roughly 12-13% combined for employers and employees; Liechtenstein uses the Swiss VAT rate through its customs union. |
Forming a company in Liechtenstein
| Usual entity | GmbH (limited liability company) or AG |
|---|---|
| Minimum capital | $13k |
| Setup cost (all-in) | $5,000–$12k |
| Annual running cost | $8,000–$20k |
| Time to incorporate | 21 days |
| Form remotely as a foreigner | No |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
Residence permits are tightly capped by quota (EEA citizens and third-country nationals separately), often allocated by lottery, and normally require employment or a company with real local presence.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 5/5 (1 = easiest) |
Special tax regimes
Notional interest deduction (NID)
A 4% deemed interest deduction on adjusted equity reduces taxable profit, which can push the effective company tax rate below 12.5%.
Private asset structures (PAS)
Low-tax private-wealth vehicles taxed at the minimum CHF 1,800 per year, used for holding personal assets rather than for operating businesses.
Blockchain (TVTG) framework
The Token and Trusted Technology Service Provider Act gives crypto and tokenisation businesses a clear legal basis and licensing route.
Pros and cons
Why founders pick Liechtenstein
- Flat 12.5% CIT and no dividend withholding tax
- EEA membership and Swiss customs and currency union
- Clear blockchain legislation
- No capital gains tax for individuals
Watch out for
- Very small market and limited talent pool
- High setup and professional-service costs
- Residence permits are quota-based and hard to obtain
- Local qualified manager and substance needed
Best for: Holding companies and family wealth structures · Blockchain and tokenisation projects needing EEA legal clarity · Businesses wanting Swiss-adjacent credibility at a 12.5% rate
Liechtenstein: common questions
What is the corporate tax rate in Liechtenstein?
A flat 12.5% on taxable profit, with a minimum tax of CHF 1,800 per year even if the company makes a loss. The notional interest deduction on equity can reduce the effective rate further.
Can a foreigner set up a company in Liechtenstein?
Yes, foreigners can own a Liechtenstein GmbH or AG, but the law requires at least one manager who is resident in the EEA or Switzerland and meets professional qualification rules, so most founders use a local trustee or fiduciary. A GmbH needs CHF 10,000 share capital.
Does Liechtenstein have a withholding tax on dividends?
No. Liechtenstein does not levy withholding tax on dividends paid to shareholders, including non-residents, though the recipient's home country may tax the dividend. This makes it attractive for holding structures.
Is Liechtenstein on the EU tax blacklist?
No. Liechtenstein exchanges tax information automatically under the OECD standard and is not on the EU list of non-cooperative jurisdictions, although it is still widely described as a tax haven because of its low rates and wealth-management industry.
Sources
- Liechtenstein Tax Administration (STV)
- Office of Justice - Commercial Register
- PwC Worldwide Tax Summaries - Liechtenstein
Compare Liechtenstein
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.