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You will doubtless have heard about Liechtenstein, a sovereign micro state, the last monarchy in the heart of the Alps and a famous tax paradise.

For over seventy years Liechtenstein has facilitated the domiciling of non-domestic financial assets and the establishment of companies for the purpose of asset management, commercial transactions, patent and licence companies. Above all, foreign individuals are not taxed when they bring money into the country, nor are taxes imposed upon distributed profits.

Liechtenstein is part of the EEA, but not a member of the EU. However, it has the rights and obligations of a member. European law is applicable along with Liechtenstein law. Notwithstanding the many bilateral agreements with Switzerland, in its capacity as EEA member Liechtenstein has also concluded a series of treaties under European law in recent years in the field of double taxation, including tax information. TIEA agreements have been concluded with a small number of states, including the USA. Despite the establishment of these accords,
                 Liechtenstein has preserved its fiscal sovereignty.

And despite the European trend towards tax standardisation, which Liechtenstein has not pursued, Liechtenstein continues to treat the assets of non-domestic investors or the commercial activities of Liechtenstein-based companies preferentially. While the almost comprehensive tax exemption of non-domestic citizens is no longer possible in Europe today, the tax differential offered by low Liechtenstein taxes remains very substantial by international and European comparison.

In particular, the Liechtenstein foundation is recognised as an exemplary instrument when it comes to holding private assets for the purpose of asset protection, family office or company succession. The foundation, as well as other company forms (Stock Corporation, trust reg. And establishment under private law) can be set up cost-effectively and with minimal bureaucratic formalities.