Liechtenstein is an attractive place to set-up a foundation. It has a modern tax law with a moderate corporate tax rate of 12.5% and no withholding taxes. Dividend income and capital gains are generally not taxed (unless in cases of abuse) and there is a notional equity interest deduction.
Our factsheet shows more advantages of foundations in Liechtenstein (PDF): Foundation Information
Setting up a foundation in Liechtenstein takes between a few days to a few weeks, depending on factors such as timeliness of compliance information received, individualization of foundation documents (articles, by-laws, regulations) and whether specific evaluations at the domicile of the settlor or beneficiaries are needed (e.g. regarding tax treatment).
The costs of setting up a foundation can vary as well. The formation costs usually amount to a few thousand Swiss Francs, but can be higher in case legal opinions or evaluations are needed. The annual costs are described below.
We are happy to assist you if you are considering to set up a foundation in Liechtenstein.
Brochure regarding company forms in Liechtenstein – including foundations (PDF): THK – Company Forms
One has to plan for annual costs for accounting and administrative tasks, representative (resident-agent) fee , minimum taxation, and foundation council member fees, which in total will amount to a few thousand Swiss Francs a year in the standard case, but can be much higher for more complex structures.
Liechtenstein law requires foundations to have at least one foundation council member who is a professional trustee.
Furthermore, Liechtenstein has a minimum tax of 1’800 Swiss Francs per year which for many companies is the only tax they pay since dividend income and capital gains are tax exempted (in most cases) and no witholding tax is due.