Liechtenstein 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.
Our company registration consultants in Liechtenstein can assist foreign investors who want to open companies in this country.
Steady economies are known to be the best incentives for foreign investors and this is exactly what Liechtenstein offers. With simple company registration procedures, but with very strict regulations applied in terms of banking transactions, Liechtenstein is far from being a tax haven.
The government has recently started to invest more in industries like research and development and new technologies which can be used in various industries, and thus drive foreign investors’ attention away from the financial industry. Moreover, Liechtenstein is now becoming more appealing for young enterprisers from neighboring countries who set up e-commerce businesses, fintech or IT companies here.
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.
The video below shows the main reasons why foreign investors open companies 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%. Also, starting with 2018, the VAT will be reduced to 7.7%.
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.
Even if the workforce is not considered an incentive related to foreign investors, in the case of Liechtenstein it is one of the most important assets. This is because it is made of specialists in most cases, unqualified personnel being quite rare here.
In terms of Company Law, Liechtenstein provides for most of the business forms available in other European countries, such as limited liability companies and joint stock corporations. For small enterprisers, the sole proprietorship is available.
Even if Liechtenstein is not an EU member state, foreign investors should know that the country has signed several agreements with the Union through which certain directives are harmonized with the local legislation in order to offer easy access to companies registered in EU block.
For complete information on the legislation favoring foreign investments, please contact our company formation representatives in Liechtenstein.