Liechtenstein Tax: How Companies and Individuals Are Taxed
Liechtenstein is not tax free. The Tax Act regulates the wealth and acquisition tax, the lump-sum tax, the real-estate gains tax, the corporate income tax and the formation levy with the insurance-premium levy. Residents are taxed on wealth through an imputed 4 % return. Companies pay 12.5 % of taxable net income, with a CHF 1,800 minimum tax that is creditable against it and not always levied. Capital gains on private assets and dividends a private person receives from shareholdings are outside taxable acquisition. Figures are the 2026 texts.
Short answer
This overview is for founders, investors and would-be residents. It takes one levy at a time, puts the article of the law beside every figure, and names the detailed guides. The law states what applies; it does not say which structure suits you. For that, our tax advisory service prepares the file and a licensed Liechtenstein trustee gives the tax advice. The rates below are the 2026 consolidated texts and they can change.
Is Liechtenstein tax free? What the Tax Act regulates
No. The Tax Act (Steuergesetz, SteG, LGBl 2010 Nr. 340) is Liechtenstein's tax law. Art. 1(1) lists what it regulates: the wealth and acquisition tax, the lump-sum tax (Steuer nach dem Aufwand), the real-estate gains tax, the corporate income tax, and the formation levy with the insurance-premium levy. Art. 1(2) reserves a top-up tax for large groups. The Tax Administration (Steuerverwaltung), the Liechtenstein tax authority, carries out the assessment (Art. 101(1)). The Tax Act is published on gesetze.li.
"Tax free" misses the mechanism. Taxation in Liechtenstein reaches wealth through a return the law imputes, taxes a resident's acquisition at a tariff with a municipal surcharge, and taxes a company at a flat rate with a minimum. Some items sit outside the tax: capital gains on private assets, and one-off inheritances and gifts, which must still be declared. The sections below take them in turn.
If you have seen CHF 1,200, 8 % or 2.5 % quoted for the minimum tax, the standard VAT rate or the reduced VAT rate, the act reads CHF 1,800, 8.1 % and 2.6 %.
Who is taxable in Liechtenstein?
The Liechtenstein tax system starts from who the taxpayer is. A natural person with residence or habitual abode in Liechtenstein is taxable without limit on the entire wealth and the entire acquisition, which is the Act's word for income (Art. 6(1)). A legal person with its seat or its place of effective management (Ort der tatsächlichen Verwaltung) in Liechtenstein is taxable on its entire income (Art. 44(1)).
The Act defines the place of effective management as the place where the centre of the entrepreneurial top management is located (Art. 2(1)(d)); the seat is defined in Art. 2(1)(e). A company registered abroad whose top management sits in Liechtenstein therefore meets the test of Art. 44(1).
Two further taxpayers have their own tests. A business becomes liable for VAT on the turnover rules set out below, and a large group falls under the top-up tax by its consolidated revenue. The Tax Administration assesses each of them.
The tests are alternatives, not a ladder. Art. 44(1) names the seat and the place of effective management side by side, so meeting either one is enough for a company to be taxable on its entire income in Liechtenstein. Which test a given company meets is a question of facts: where the board sits and where the top management takes its decisions. The Act sets the definitions; it does not decide your case. That decision belongs to the Tax Administration under Art. 101(1), on the file the taxpayer or the representative submits.
How is wealth taxed? The 4 % standard return
Wealth in Liechtenstein is taxed through an income the law assumes the wealth earns. Three rules of the Tax Act work together, and none of them alone shows the result.
The law fixes a standard return
Art. 5(1) sets the interest rate for the standardised return on wealth, the Sollertrag, at 4 %. The rate is written into the Act itself, not set year by year.
The return counts as acquisition
Under Art. 14(2)(l), the standard return on taxable wealth counts as taxable acquisition. It is therefore taxed at the income tariff described in the next section.
The actual yield is not taxed again
Art. 15(1)(a) provides that the actual yield of wealth on which wealth tax is paid is not taxed again as income. The imputed return replaces the real one.
Read together, the three rules mean that the Act does not look at what the wealth actually earned. It fixes a return of 4 % (Art. 5(1)), counts that return as acquisition (Art. 14(2)(l)), and then leaves the real yield alone (Art. 15(1)(a)). The tax on the imputed amount follows the income tariff, the one set out in the next section, with the municipal surcharge on top. That is why the 4 % matters more than any single rate in the wealth discussion: it is the number from which the rest follows.
The wealth tax on a resident of Liechtenstein has its own guide, which goes through the assessment in more depth.
How wealth is taxed
Standard return
4 % of taxable wealth
Counted as taxable acquisition
taxed at the income tariff
Actual yield of that wealth
not taxed again as income
What income tax does a resident pay?
A resident's acquisition is taxed at the national tariff in Art. 19. Each municipality (Gemeinde) then sets a surcharge (Gemeindezuschlag) every year, as a percentage of the national tax (Art. 75(3)). The tariff and the surcharge are two separate facts: the national tax comes first, and the surcharge is a percentage of it. This page does not add them into one top rate, because the Act states no combined rate.
National tariff and municipal surcharge for residents, 2026 consolidated text; rates can change
| item | general tariff (not single parents, not spouses) | spouses assessed together | article |
|---|---|---|---|
| Nothing taxed up to (basic allowance, Grundfreibetrag) | CHF 15,855 | CHF 31,710 | Art. 19(1)(a), (c) |
| Top bracket starts at | CHF 211,401 | CHF 422,801 | Art. 19(1)(a), (c) |
| Top bracket formula, marginal rate 8 % | 0.08 times x minus 6,448 | 0.08 times x minus 12,895 | Art. 19(1)(a), (c) |
| Municipal surcharge on the national tax | at least 150 %, at most 250 % | at least 150 %, at most 250 % | Art. 75(3) |
Sources: Tax Act (SteG) Art. 19(1), 75(3).
Single parents have their own tariff, with a basic allowance of CHF 23,783 (Art. 19(1)(b)).
The lowest municipal surcharge has been 150 % for years, and the Government expects it to stay at 150 % for tax year 2027, according to its report 108/2026, section 3. We have not collected a list of the surcharge each municipality sets.
Lump-sum taxation can be applied for; the Tax Administration decides whether the applicant is placed under it or under ordinary wealth and acquisition tax (Art. 30(1), 31). It is open to foreigners who move in for the first time or after at least ten years abroad (mindestens zehnjährige Landesabwesenheit), take up no gainful activity in Liechtenstein, and live on income from wealth or on foreign receipts (Art. 30(1)). The lump-sum tax is 25 % of the annual expenditure (Art. 33).
What is not taxed, and what must still be declared?
Each line of the table below concerns private assets and private persons. A private person does not pay tax on the capital gain from selling private movable or immovable assets, and does not pay tax on dividends from shareholdings in legal persons. One-off inheritances, bequests and gifts are not taxable acquisition either.
Items outside taxable acquisition for a private person, and the exception for domestic real estate, 2026 consolidated text
| item | treatment | article |
|---|---|---|
| Capital gains on the sale of private movable and immovable assets | Not part of taxable acquisition | Art. 15(2)(m) |
| Dividends (Gewinnanteile) from participations in legal persons, received by a private person | Not taxable acquisition | Art. 15(2)(n) |
| One-off inheritances, bequests and gifts | Not taxable acquisition, but stated in the tax return above the Government's minimum amount | Art. 15(2)(c); Art. 96(1), (2) |
| Real-estate gains on domestic land | Taxed separately, at the Art. 19 tariff plus a surcharge of 200 % | Art. 43 |
Sources: Tax Act (SteG) Art. 15(2), 43, 96.
The duty to declare is separate from the tax. Gifts made or received go into the return under Art. 96(1)(a), and inheritances and bequests received under Art. 96(1)(b). The Government sets the minimum amount above which they are reported (Art. 96(2)).
Searches ask which country has a 0 % capital gains tax. This page answers only for Liechtenstein and only for private assets. It does not rank countries, and the Act's treatment of gains on business assets is not covered here. A separate guide on capital gains goes into more depth.
What do companies pay?
A company pays corporate income tax of 12.5 % of its taxable net income (Art. 61). A minimum income tax of CHF 1,800 a year applies (Art. 62(2), 2026). It is fully creditable against the corporate income tax (Art. 62(1)). It is not levied on an entity whose purpose is solely a commercially run trade and whose balance-sheet total averaged no more than CHF 500,000 over the last three financial years (Art. 62(3)). The place where a company is taxed follows the seat or the place of effective management described above.
Three rules shape the base. First, dividends from participations in legal persons are excluded from taxable net income (the participation exemption, Beteiligungsertragsbefreiung, Art. 48(1)(e)). Art. 48(3) to (5) list exceptions: where they apply, such as dividends from low-taxed foreign payers with passive income, the dividends count as taxable net income. Second, notional interest on modified equity at the 4 % standard return is deductible (Eigenkapital-Zinsabzug, Art. 54(1)); it cannot create or increase a current loss. Third, a private asset structure (Privatvermögensstruktur, PVS) pays only the minimum tax and is not assessed (Art. 64(8)).
Company levies and reliefs in the Tax Act, 2026 consolidated text; rates can change
| levy or relief | rate or amount | article | what it leaves out |
|---|---|---|---|
| Corporate income tax | 12.5 % of taxable net income | Art. 61 | Taxable net income is the base |
| Minimum income tax | CHF 1,800 a year | Art. 62(1) to (3) | Creditable against the corporate income tax; not levied in the trade case of Art. 62(3); a private asset structure pays only this |
| Participation exemption | Dividends from participations in legal persons are excluded | Art. 48(1)(e) | The cases listed in Art. 48(3) to (5) |
| Notional interest deduction | Interest on modified equity at the 4 % standard return | Art. 54(1) | It cannot create or increase a current loss |
| Private asset structure | Minimum tax only | Art. 64(8) | It is not assessed |
Sources: Tax Act (SteG) Art. 48, 54, 61, 62, 64.
Read the table from the top. The 12.5 % applies to taxable net income, so the reliefs below it matter because they change what counts as net income. The minimum tax matters in the opposite case, where little or no income is assessed: the minimum tax of CHF 1,800 is still due (Art. 62(2)), unless the exemption of Art. 62(3) applies. The Act gives no combined figure across these lines, and this page does not invent one.
A company that holds shares in other companies relies on the participation exemption most often. The legal form that carries a group's shareholdings has its own page.
See how a licensed trustee reviews a tax file
A licensed Liechtenstein trustee gives the tax advice. We prepare the documents and keep the file in order.
Formation levy, stamp duty and the coupon tax
Where Swiss stamp-duty law does not apply, the formation of a company or a capital increase bears a formation levy of 1 % of the capital, with a general exemption threshold (Freigrenze) of CHF 1 million (Art. 66(1)). The rate falls to 0.5 % for the capital above CHF 5 million and to 0.3 % for the capital above CHF 10 million. Swiss federal stamp-duty law applies in Liechtenstein, as the Swiss Federal Tax Administration's brochure states, so for an AG or GmbH the Swiss issuance duty takes the place of the Liechtenstein formation levy.
The coupon tax (Couponsteuer) of the former law is not simply gone. The transitional article keeps the former rules (Art. 88a to 88p of the former law, among others) in force for old reserves (Art. 158(1)). For old reserves still existing at the 2014 amendment, a coupon tax was levied until 31 December 2015 even without a distribution (Art. 158(3)). The rate for 2014 and 2015 was 2.5 % (Art. 158(4)). Art. 158 gives no end date for the old-reserve provisions, and this page states no later charge year.
How does VAT work in Liechtenstein?
Liechtenstein and Switzerland form one VAT territory (Mehrwertsteuerinland) by treaty, as the Tax Administration's VAT page states. The rates and the liability test come from the VAT Act (Mehrwertsteuergesetz, MWSTG, LGBl 2009 Nr. 330) in its 2026 text.
VAT rates, liability test and late-payment interest, 2026 texts; rates can change
| rate or test | value | article |
|---|---|---|
| Standard rate | 8.1 % | MWSTG Art. 25(1) |
| Reduced rate | 2.6 % | MWSTG Art. 25(2) |
| Accommodation rate | 3.8 % | MWSTG Art. 25(4) |
| Liability test | Exempt from liability while turnover in Liechtenstein and abroad together stays under CHF 100,000 within a year, counting only supplies not excluded from tax under Art. 21(2) | MWSTG Art. 10(2)(a) |
| Late-payment interest | 4 % a year from 1 January 2026, collected only from an interest amount of CHF 100 | MWSTV Art. 142(2)(a), (3) |
Sources: VAT Act (MWSTG) Art. 10, 25; VAT Ordinance (MWSTV) Art. 142.
The CHF 100,000 line counts turnover at home and abroad. A second rule sits beside it: a business with its seat, residence or permanent establishment abroad is exempt from liability, whatever its turnover, if it supplies in Liechtenstein only the kinds of supply listed in Art. 10(2)(b). A business that becomes liable notifies the Tax Administration in writing within 30 days of the start of its liability (Art. 53(1)).
The value added tax regime shared with Switzerland has its own guide.
Double-tax agreements and the global minimum tax
Who is taxed where
Taxed on
Resident individual: Wealth and acquisition, taxed without limitCompany: Entire income, if the seat or the place of effective management is in LiechtensteinLarge group: Top-up tax, if consolidated revenue is at least EUR 750 million in at least two of the four preceding years
On Liechtenstein double tax treaties, the rates belong in a table the Tax Administration publishes: the source-tax rates other states may levy on persons resident in Liechtenstein, state January 2026. The dividend columns are separate from those for interest and royalties. This page carries no treaty rate.
The Tax Administration's treaty overview of 21 October 2026 has 32 numbered rows. Five treaties are signed but not in force (Belgium, Ireland, Italy, the Philippines and Vietnam), and Bahrain is only initialled (paraphiert). That leaves 26 in force, counted from the table; the count is dated and may change. For the United States, the overview lists only information-exchange agreements (FATCA and country-by-country reporting) and no double-tax row, so this page makes no statement about a treaty.
The top-up tax, the Liechtenstein form of the global minimum tax, applies to groups whose ultimate parent reaches annual consolidated revenue of at least EUR 750 million in at least two of the four preceding financial years (Art. 4(1) of the GloBE-Gesetz). It has been in force since 1 January 2024. A stand-alone small company is below that threshold; a small Liechtenstein entity inside a large group is covered through the group's revenue.
What happens when tax is under-declared?
A return that declares too little can draw a fine where the taxpayer acted intentionally or negligently (Art. 137(1)(a)). The fine is normally one times the evaded tax, and it can be reduced to a third or raised to three times (Art. 137(2)). Art. 135 and 136 are separate offences that this page does not cover. The multiplier is the Act's own: the starting point is the amount of tax evaded, and the range from a third to three times that amount is the room the authority has in setting the fine. Whether a particular return falls into the range is for the authority and the court, not for an overview.
Back-tax (Nachsteuer) can be claimed where facts or evidence unknown to the authority show that an assessment was wrongly omitted or is incomplete (Art. 120(1)). None can be claimed where the return was complete and accurate and the valuation was accepted (Art. 120(2)). The procedure must start within five years (Art. 121(1)), and the right to assess back-tax lapses in every case after ten years (Art. 121(3)). The Act says "festzusetzen", assess, not collect. That is one reason the declaration duties in the section on private assets matter even where no tax is due.
A taxpayer may be represented before the tax authorities with a written power of attorney (Art. 90).
Who may give tax advice in Liechtenstein?
Tax advice for third parties is a trustee activity under Art. 2(d) of the Trustee Act (TrHG). Anyone who practises it without a licence commits a crime, punished by up to one year in prison or up to 360 daily rates (Art. 80(1)). Offering it without a licence is fined (Art. 81(1)(k)).
The roles are split. Vaduz Corporate Solutions prepares and coordinates the file. The licensed Liechtenstein trustee named in your engagement letter gives the tax advice, and prepares the return under a written power of attorney. This page names no partner and no licence number. The books behind a return, bookkeeping and annual accounts for a Liechtenstein entity, are handled the same way.
From our practice. We prepare the file the trustee works from. We gather the identity and company documents and write down the open questions for the trustee. The trustee then reviews the file and gives the tax advice.
Sources
- Tax Act (SteG), consolidated text: levies, residents, wealth, tariff, surcharge, exemptions, companies, coupon tax, fines.
- Tax Act (SteG), article texts: assessment and place of effective management.
- VAT Act (MWSTG): rates, liability, notification.
- VAT Ordinance (MWSTV): late-payment interest.
- GloBE-Gesetz: top-up tax threshold.
- Trustee Act (TrHG): who may give tax advice.
- Tax Administration, VAT page: common VAT territory.
- Tax Administration, source-tax rates: state January 2026.
- Tax Administration, treaty overview: 21 October 2026.
- Government report 108/2026: municipal surcharge.
- Swiss Federal Tax Administration, stamp-duty brochure: application of Swiss stamp duty in Liechtenstein.
Frequently asked questions about Liechtenstein tax
Is Liechtenstein tax free?
No. The Tax Act regulates the wealth and acquisition tax, lump-sum tax, real-estate gains tax, corporate income tax and the formation and insurance-premium levies. Wealth is taxed through an imputed 4 % return (Art. 5(1)); companies pay 12.5 % with a CHF 1,800 minimum tax (Art. 61, 62). Private capital gains are outside taxable acquisition. 2026 texts; they can change.
How is wealth taxed in Liechtenstein, and what is the Sollertrag?
The Sollertrag is the standard return of 4 % that Art. 5(1) of the Tax Act sets for wealth. Under Art. 14(2)(l) it counts as taxable acquisition and is taxed at the income tariff. The actual yield of wealth on which wealth tax is paid is not taxed again as income (Art. 15(1)(a)).
What is the corporate tax rate in Liechtenstein?
The corporate income tax is 12.5 % of taxable net income (Art. 61 of the Tax Act, 2026 text). A minimum income tax of CHF 1,800 a year applies; it is creditable against that tax, with an exception in Art. 62(3). Two reliefs shape the base: the participation exemption (Art. 48) and the notional interest deduction (Art. 54(1)).
What is the minimum corporate tax?
The minimum income tax is CHF 1,800 a year (Art. 62(2), 2026). If you have seen CHF 1,200 quoted, the act reads CHF 1,800. Art. 62(1) makes it creditable against the corporate income tax; Art. 62(3) exempts a purely trading entity with a balance-sheet total averaging up to CHF 500,000. A private asset structure pays only this (Art. 64(8)).
Is there capital gains tax on private assets?
Not on private assets. Art. 15(2)(m) leaves capital gains on the sale of private movable and immovable assets outside taxable acquisition. Real-estate gains on domestic land are taxed separately at the Art. 19 tariff plus a surcharge of 200 % (Art. 43). The Act's treatment of gains on business assets is not covered here.
Are there inheritance or gift taxes, and must they be declared?
One-off inheritances, bequests and gifts are not taxable acquisition (Art. 15(2)(c)). They must still be stated in the tax return, above the minimum amount the Government sets (Art. 96(2)). Gifts made or received fall under Art. 96(1)(a), inheritances and bequests received under Art. 96(1)(b).
How high is the municipal surcharge?
Each municipality sets its surcharge on the national tax every year, at no less than 150 % and no more than 250 % (Art. 75(3)). The lowest surcharge has been 150 % for years, and the Government expects it to stay at 150 % for tax year 2027. We list no figure per municipality.
What is the VAT rate in Liechtenstein, and why does it match Switzerland?
The standard rate is 8.1 %, the reduced rate 2.6 % and the accommodation rate 3.8 % (Art. 25 MWSTG, 2026). Liechtenstein and Switzerland form one common VAT territory by treaty, according to the Tax Administration, so both states count as a single VAT area.
When does a business become liable for VAT?
A business is exempt while its turnover in Liechtenstein and abroad together stays under CHF 100,000 within a year, counting only supplies not excluded from tax under Art. 21(2) (Art. 10(2)(a) MWSTG). A foreign business with only the listed supplies is exempt whatever its turnover (Art. 10(2)(b)). Notification is due within 30 days (Art. 53(1)).
Was the coupon tax abolished?
No, it is not simply gone. Art. 158 keeps the old rules for old reserves, a coupon tax was levied until 31 December 2015 even without a distribution, and the rate for 2014 and 2015 was 2.5 %. Art. 158 states no end date for the old-reserve provisions.
What is a private asset structure (PVS)?
A private asset structure (Privatvermögensstruktur, PVS) pays only the minimum income tax, CHF 1,800 a year (Art. 62(2)), and is not assessed otherwise (Art. 64(8) of the Tax Act). Whether a holding qualifies is decided by the Tax Administration, on the taxpayer's yearly confirmation of the conditions (Art. 64(4), (5)); the licensed trustee advises on the file.
How many double-tax agreements does Liechtenstein have in force?
26, counted from the Tax Administration's treaty overview of 21 October 2026. The overview has 32 rows: five treaties are signed but not in force, and Bahrain is only initialled. The count is dated and may change. The Tax Administration publishes the source-tax rates other states may levy in a separate table.
Does the global minimum tax apply to small companies?
Not by its own size. The Liechtenstein top-up tax applies to Liechtenstein entities of groups whose ultimate parent reaches annual consolidated revenue of at least EUR 750 million in at least two of the four preceding financial years (Art. 4(1) GloBE-Gesetz). A company outside such a group is not covered. It has been in force since 1 January 2024.
Who may give tax advice in Liechtenstein?
Tax advice for third parties is a trustee activity (Art. 2(d) TrHG), so only a licensed Liechtenstein trustee gives it. Vaduz Corporate Solutions prepares and coordinates the file. A taxpayer may be represented before the tax authorities under a written power of attorney (Art. 90 SteG).
Can foreigners be taxed on a lump sum?
Possibly: on application, and the Tax Administration decides (Art. 30(1), 31). Foreigners must move in for the first time or after at least ten years abroad, take up no gainful activity in Liechtenstein, and live on income from wealth or foreign receipts. The tax is 25 % of the annual expenditure (Art. 33). We state no minimum base.