Company Formation Liechtenstein
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Legislation Related to Foreign Investments in Liechtenstein

Updated on Monday 31st October 2016

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Legislation-related-to-foreign-investments-in-LiechtensteinLiechtenstein has received very good ratings from the largest credit rating agencies in the world during the last few years, because of its prosperous economy. Moreover, Liechtenstein  has had such economic growth that in 2015 the Government created more jobs than the population of the country, without including the foreigners working here. This has made the Principality a major attraction point for foreign investors all over the world. Apart from this, Liechtenstein’s set of local laws are targeted towards foreign investments and are appealing to overseas small and large enterprisers and companies.

Liechtenstein, an open country for foreign investments

Liechtenstein has no specific legislation targeting foreign investments because most of its industries are open to investments from nationals and foreigners. The Commercial Code does not discriminate between local and outside entrepreneurs, meaning that foreign investors will benefit from the same advantages as national ones.

When it comes to opening a company in Liechtenstein, there are plenty of structures to choose from. Foreign investors can set up sole traders, partnerships or companies, while foreign large companies can set up subsidiaries, representative offices or branches.

The few exceptions related to foreign investments refer to ownership of financial institutions by overseas investors and the possibility of buying real estate property in Liechtenstein.

Our company registration agents in Liechtenstein can offer full information on the foreign investment exceptions applicable in the Principality.

Tax advantages for foreign investors in Liechtenstein

Foreign investors coming to Liechtenstein will be levied the same taxes as local ones. Among these, one of the lowest corporate taxes in Europe- 12.5%, very low withholding taxes and a value added tax of 8%. Moreover, foreign companies with operations in Liechtenstein can also take advantage of the country’s double tax treaties which provide for further reduced tax rates or exemptions. For example, branch offices will not be levied any tax when remitting incomes arisen in Liechtenstein to their home countries.

For complete information on the legislation favoring foreign investments, please contact our company formation representatives in Liechtenstein.

 

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