What are some promising business opportunities in Liechtenstein?

Business opportunities in Liechtenstein include financial technology, precision manufacturing, asset management, legal consulting, and sustainable technologies.

How would you describe the Liechtenstein business environment?

The Liechtenstein business environment is efficient, well-regulated, and business-friendly, with strong protections for investors and a low-bureaucracy approach.

What steps are involved in starting a business in Liechtenstein?

Starting a business in Liechtenstein involves choosing a legal structure, registering with the Commercial Register, and meeting corporate and tax compliance obligations.

What should I know about Liechtenstein company formation?

Liechtenstein company formation is governed by the PGR law and allows for structures like AG, GmbH, and Anstalt, suitable for various business and asset protection goals.

What is the corporate tax rate in Liechtenstein?

The Liechtenstein corporate tax rate is a flat 12.5%, with exemptions for capital gains and deductions for notional interest on equity.

How strict are Liechtenstein business regulations?

Liechtenstein business regulations are strict but transparent, aligning with EEA and OECD frameworks, particularly in anti-money laundering and financial reporting.

Are there any business incentives in Liechtenstein?

Yes, Liechtenstein business incentives include low taxes, streamlined incorporation, R&D protection, and access to financial infrastructure and cross-border legal tools.

What role does the financial services sector play in the economy?

The Liechtenstein financial services sector is a key pillar of the economy, supporting private banking, investment management, and cross-border wealth services.

Is the Liechtenstein investment climate favorable?

The Liechtenstein investment climate is stable and internationally respected, with full foreign ownership rights, legal clarity, and minimal currency restrictions.

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Business in Liechtenstein

BUSINESS in Liechtenstein

Dari Podhur, Counsel

1 April, 2025

Table of Content

Introduction to Business in Liechtenstein
Liechtenstein Economic Overview
Business Opportunities in Liechtenstein
Liechtenstein Business Environment
Starting a Business in Liechtenstein
Liechtenstein Company Formation and Legal Framework
Corporate Tax Rate and Fiscal Advantages
Business Regulations and Compliance
Business Incentives in Liechtenstein
Financial Services Sector Overview
Liechtenstein Investment Climate
Conclusion

An Inside Look at One of Europe’s Most Strategic Economies

Though small in size, the Principality of Liechtenstein offers one of the most attractive and secure environments for doing business in Europe. Strategically positioned between Switzerland and Austria, Liechtenstein combines economic openness with political stability and strong legal protections. Whether you're a foreign investor, startup founder, or multinational enterprise, understanding the fundamentals of doing business in Liechtenstein is a crucial step toward success.

This article explores business in Liechtenstein, providing insights into legal requirements, business opportunities, taxation, incentives, and more. It’s designed to help you navigate the Liechtenstein business environment with clarity and confidence.

Liechtenstein Economic Overview

The country boasts one of the highest GDP per capita figures in the world and operates on a diversified economy. The Liechtenstein economic overview includes strong sectors like manufacturing (notably precision instruments), finance, and information technology.

Liechtenstein is a member of the European Economic Area (EEA) and the European Free Trade Association (EFTA), giving businesses access to both EU and Swiss markets.

Official statistics and economic data: https://www.llv.li and https://www.liechtenstein-institut.li

Business Opportunities in Liechtenstein

There are multiple business opportunities in Liechtenstein across various sectors:

Financial services and fintech
Asset management and private banking
Legal and fiduciary services
Manufacturing of high-tech components
Green and sustainable technologies

The country’s high purchasing power, open economy, and international connections make it an excellent launchpad for regional expansion.

Liechtenstein Business Environment

The Liechtenstein business environment is characterized by:

High legal certainty and a reliable judiciary
Favorable tax system
Stable macroeconomic conditions
Advanced infrastructure and digital services

These factors create an ecosystem where starting a business in Liechtenstein is not only possible but practical and rewarding.

Starting a Business in Liechtenstein

Foreigners can fully own and operate companies in Liechtenstein. Starting a business in Liechtenstein involves several key steps:

Selecting the appropriate legal form (e.g., AG, GmbH, Anstalt)
Registering the company with the Liechtenstein Commercial Register: https://www.oera.li
Depositing minimum share capital
Drafting Articles of Association
Appointing directors and setting up a registered office

Most procedures are handled efficiently, and a company can often be set up within 10 working days.

Liechtenstein Company Formation: Legal Framework

The legal foundation for Liechtenstein company formation is the Persons and Companies Act (PGR), available at: https://www.gesetze.li/konso/1926010000
Common legal entities include:

AG (Aktiengesellschaft) – Public limited company
GmbH (LLC) – Private limited company
Anstalt – Establishment with hybrid characteristics
Stiftung (Foundation) – Used for asset holding or succession

Each form serves different purposes depending on size, ownership, and sector.

Liechtenstein Corporate Tax Rate and Fiscal Advantages

One of the strongest advantages of doing business in Liechtenstein is its tax regime. The flat Liechtenstein corporate tax rate is 12.5%, with options for notional interest deductions and no capital gains tax.

Additional benefits include:

No withholding tax on dividends in most cases
Competitive VAT (7.7%) aligned with Switzerland
Access to over 20 double taxation treaties (DTTs)

Learn more at the Tax Administration Office: https://www.llv.li/inhalt/11755/amtsstellen/steuerverwaltung

Liechtenstein Business Regulations and Compliance

Liechtenstein business regulations are transparent, predictable, and harmonized with EEA and OECD standards. Businesses must comply with:

AML/CFT legislation
Financial Market Authority (FMA) regulations: https://www.fma-li.li
Commercial and accounting laws

The country maintains a strong legal framework with low administrative burdens, especially for SMEs and international firms.

Liechtenstein Business Incentives

To attract foreign investment, various Liechtenstein business incentives exist, including:

Access to government-supported business clusters
Favorable IP protection and R&D frameworks
Fast-track incorporation procedures
Confidential foundation and trust structures

Some municipalities may also offer tax-related benefits or infrastructure support to key industries.

Liechtenstein Financial Services Sector

A key pillar of the economy, the Liechtenstein financial services sector includes:

Private banks and asset managers
Insurance and reinsurance companies
Investment funds and management firms

With strict due diligence, client confidentiality, and cross-border service capabilities, Liechtenstein is widely regarded as a global financial center.
The Financial Market Authority regulates this sector: https://www.fma-li.li

Liechtenstein Investment Climate

The overall Liechtenstein investment climate is considered highly attractive due to:

Legal and political stability
Full foreign ownership permitted
Favorable tax policies
No foreign exchange controls
A high-quality workforce with multilingual talent

Foreign direct investment (FDI) is encouraged and supported by local fiduciaries and law firms.

Conclusion: Why Liechtenstein Means Business

Choosing to pursue business in Liechtenstein offers a rare combination of discretion, innovation, and European market access. Whether you're evaluating Liechtenstein investment climate conditions, exploring Liechtenstein business opportunities, or simply looking for a secure jurisdiction to launch your venture, the principality delivers unmatched strategic advantages.

With modern infrastructure, competitive taxes, a thriving financial services sector, and streamlined business regulations, Liechtenstein remains a standout destination for international business.

Starting or expanding a business in Liechtenstein offers access to a highly developed financial sector, investor-friendly regulations, and a stable economic environment. Whether you're launching a new venture or relocating an existing structure, our team provides full support tailored to your goals.

📩 Contact us today for expert guidance on doing business in Liechtenstein. We’ll connect you with a dedicated advisor, offer a personalised consultation, and prepare a comprehensive presentation covering legal, tax, and operational aspects of your business setup.