Liechtenstein: Investing
The World Investment Report 2023 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 Corruption Perception Index and is 93rd out of 184 countries on the latest Index of Economic Freedom.
| Liechtenstein | United States | Germany |
|---|
| Foreign Direct Investment | 2020 | 2021 | 2022 |
|---|---|---|---|
| Number of Greenfield Investments* | 1.0 | 3.0 | 0.0 |
| Value of Greenfield Investments (million USD) | 13 | 32 | 0 |
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.
| 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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Latest Update: May 2024
