Investing

flag Liechtenstein Liechtenstein: Investing

FDI in Figures

The 2022 World Investment Report by UNCTAD does not provide any data about Liechtenstein and neither does the national government. The country has an attractive fiscal system, simple incorporation laws and increasingly strict regulations in terms of banking matters. As such, Liechtenstein is a strong site for national and international businesses. In terms of sectoral distribution, the financial and insurance sector is by far the largest recipient of FDI inflows to Liechtenstein, followed by the wholesale and retail trade, manufacturing, and real estate sectors. The government of Liechtenstein has also been actively promoting the country as a hub for innovation and technology, which has attracted FDI in the information and communication technology sector. The main investors include EU countries (particularly Germany) and Switzerland.
 
Liechtenstein has a stable and predictable investment regime, with most sectors open to national and foreign investment. Capital gains, inheritance, and gift taxes have been abolished, and its corporate tax rate is among the lowest in Europe. Liechtenstein’s investment conditions are identical in most key aspects to those in Switzerland, due to its integration into the Swiss economy. Furthermore, the country has a stable and open economy and has created more jobs than the country's domestic population (41,352 workers in 2021, out of which 29,346 were from other nationalities). Liechtenstein's investment abroad (mainly in EU countries) outweighs inflows to the country. However, there is little to no official information on the country's external trade, the balance of payments, and international investment position, as the Swiss National Bank nor the Liechtenstein Office of Statistics release specific investment data on investment inflows. In 2015, Liechtenstein signed an agreement with the European Union to allow automatic exchanges of financial account information, and in 2018 a similar agreement entered into force with Switzerland. Liechtenstein is not ranked in the 2023 Index of Economic Freedom nor in the Corruption Perception Index.

 

Country Comparison For the Protection of Investors

  Liechtenstein United States Germany
 
Foreign Direct Investment 202020212022
Number of Greenfield Investments* 1.03.00.0
Value of Greenfield Investments (million USD) 13320

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

 

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Tax Rates

Value Added Tax (VAT)
7.7% (standard rate)
2.5%: food deliveries, drugs, newspapers, magazines, and books
3.7%: lodging/accommodation
Health, social security, education, banking, and insurance services are exempt.
Company Tax
12.5%
Withholding Taxes
Liechtenstein does not levy any withholding tax.
Social Security Contributions Paid By Employers
Old age, survivors’, and disability insurance: 5.291%
Family compensation fund: 1.9%
Unemployment insurance/supplementary unemployment insurance: 0.5%
Occupational accident insurance: 0.1% approximately
Occupational pension scheme: contributions vary according to the pension plan
Other Domestic Resources
Tax Administration (Steuerverwaltung - STV)
Overview of Liechtenstein's tax measures in response to Covid-19
Ministry for General Government Affairs and Finance
 
 

Individual Taxes

Income tax (single taxpayer) Progressive rates from 0% to 8%
EUR 0 - 15,000 0
EUR 15,000 -  20,000 1%
EUR 20,000- 40,000 3%
EUR 40,000- 70,000 4%
EUR 70,000- 100,000 5%
EUR 100,000- 130,000 6%
EUR 130,000 - 160,000 6.5%
EUR 160,000 - 200,000 7%
EUR 200,000 and above 8%
Municipal tax Communities levy a surcharge of between 150% and 250% on the national income tax due
 
 

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Investment Opportunities

Tenders, Projects and Public Procurement
Tenders Info, Tenders in Liechtenstein
DgMarket, Tenders Worldwide
Useful Resources
Liechtenstein Investment Fund Association (LAFV)
 
 
 

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Latest Update: November 2023