Liechtenstein is small, but it has led one discipline for almost a century: structuring wealth. The principality combines a corporate tax rate of 12.5% with access to the European Economic Area, the Swiss franc as its currency and a legal system tailored to foundations and holdings. Anyone considering company formation in Liechtenstein or establishing a foundation also benefits from a minimum tax of CHF 1,800 and the absence of withholding tax on dividends.
12.5% and minimum tax
Companies and foundations in Liechtenstein are subject to a uniform corporate tax rate of 12.5%. Many types of income are tax-exempt – dividends and gains from the sale of participations as well as income from foreign real estate and permanent establishments. For many structures, the effective burden is therefore noticeably below 12.5%.
Every company pays an annual minimum tax of CHF 1,800. Liechtenstein levies no withholding tax on dividends and no taxes on capital gains, inheritances or gifts. Taxes are administered by the tax authority of the National Administration of Liechtenstein.
The Liechtenstein foundation
The foundation is the hallmark of the Liechtenstein financial centre. It is an independent legal entity without shareholders: the founder dedicates assets to it which, from that moment on, are legally separate and serve a defined purpose – such as providing for the family across generations. The dedicated assets are separated from the founder’s private wealth and shielded from third parties.
The minimum capital of a foundation is CHF 30,000 and can also be contributed in euros or US dollars. The only mandatory body is the foundation council with at least two members, one of whom must be a Liechtenstein trustee or an equally qualified person. The founder may also sit on the foundation council.
The private-benefit foundation, such as a family foundation, is particularly discreet: it is not entered in the commercial register. It suffices to deposit a formation notice stating its name, seat and purpose with the Office of Justice, confirmed by a professional licensed in Liechtenstein; the deed of foundation itself is not deposited. Charitable foundations, by contrast, are registered and supervised by the foundation supervisory authority.
Taxation of the foundation
In principle, a foundation’s income is subject to the 12.5% corporate tax; the exemptions for dividends and capital gains on participations apply here as well. Particularly attractive is the status of a private asset structure (PVS): if the foundation carries out no economic activity and only manages its own assets, it pays just the minimum tax of CHF 1,800 a year – without a tax return and without an assessment.
| Foundation | Tax | Tax return |
|---|---|---|
| With private asset structure (PVS) | CHF 1,800 flat per year | Not required |
| Without PVS status | 12.5% on taxable income, at least CHF 1,800 | Annually |
The EFTA Surveillance Authority has confirmed that the taxation of private asset structures is compatible with European state aid law – a major contribution to the legal certainty of this model.
AG, Anstalt and foundation
Besides the foundation, Liechtenstein offers further legal forms. The three most important compared:
| AG | Anstalt | For wealthFoundation | |
|---|---|---|---|
| Legal nature | Company limited by shares | Distinct legal form, company-like or foundation-like | Separate assets without owners |
| Owners | Shareholders | Holder of the founder’s rights | None; beneficiaries per the statutes |
| Minimum capital | CHF 50,000 | CHF 30,000 | CHF 30,000, also in EUR or USD |
| Governing body | Board of directors | Board of directors | Foundation council with at least two members |
| Public register | Entry in the commercial register | Entry in the commercial register | Private-benefit: only a formation notice is deposited |
| Taxation | 12.5%, at least CHF 1,800 | 12.5% or PVS | 12.5% or PVS |
| Ideal for | Operating businesses, holdings | Flexible holding and asset structures | Wealth, family, succession |
The Anstalt is a Liechtenstein speciality with no equivalent in other legal systems: it can be structured either like a foundation or like a company and is therefore particularly flexible.
The formation process
The process is largely the same for foundations and companies. Company formation in Liechtenstein involves these steps:
- Define the structure: foundation, Anstalt or AG – depending on assets, purpose and succession.
- Draft the statutes and by-laws: They govern the purpose, bodies and beneficiaries.
- Appoint the foundation council or board: with at least one qualified Liechtenstein member.
- Dedicate or pay in the capital: at least CHF 30,000 for foundations and Anstalten.
- Registration or deposit: AG and Anstalt are entered in the commercial register, the private-benefit foundation deposits its formation notice; the PVS status is applied for if required.
With complete documents, a foundation is usually established and operational within a few weeks.
Accounting and obligations
The key obligations for bookkeeping, accounts, audit and VAT at a glance – so you know from the start what running your company involves.
| Obligation | Rule |
|---|---|
| Bookkeeping | Under the Persons and Companies Act (PGR) |
| Annual accounts | Annually; simplified for private asset structures |
| Statutory audit | Auditor for companies with a commercial trade; scope by size class (small up to CHF 7.5m total assets, CHF 15m revenue, 50 staff); private-benefit foundations usually without auditor |
| Tax return | Annual return; as a private asset structure no return, only CHF 1,800 |
| VAT: registration | From CHF 100,000 turnover (customs union with Switzerland); rate 8.1% |
| VAT: returns | Quarterly |
| Ongoing register duties | Qualified Liechtenstein board member; beneficial owner register |
As of 2026. Bookkeeping and filings are usually handled by specialised accountants in the target country.
Is Liechtenstein right for you?
A foundation in Liechtenstein addresses a clearly defined group: families and entrepreneurs who want to secure their wealth across generations and arrange their succession in a binding way. It bundles securities, participations, real estate and art under one roof, protects the assets and determines who benefits when. This is why company formation in Liechtenstein is often combined with a foundation as the owner.
Whether the location as a whole suits you is shown in the following overview:
Suitable for
- Families securing their wealth across generations
- Entrepreneurs who want to arrange their succession
- Holdings with participations in the EEA and worldwide
- High-net-worth individuals with securities portfolios
Less suitable for
- Small online businesses with low profits
- Founders who want to start at minimal cost
- Ventures that want to sell operationally from day one
- Structures with no need for asset protection
Switzerland shares its currency and economic area with Liechtenstein; for holdings within the EU, Malta and Cyprus are also of interest. The overview of all locations shows every option, and the tax comparison the rates. Which structure fits in an individual case can be clarified in an initial call.
