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
Administration and annual costs
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.
How we can help
Our partners and staff have decades of experience in the industry. We have formed and are managing many foundations for a wide range of clients. We have the expertise to help you with the set-up of your foundation and are also able to assist you with accounting, tax, and other related services.
If you are interested to find out more about the advantages of Liechtenstein and the option of setting up a foundation here, we are glad to hear from you.