Expat Investment Advice in Liechtenstein: Understanding One of the Most Sophisticated Financial Markets in the World

Liechtenstein is one of Europe’s smallest countries, but it offers one of the most sophisticated and stable environments for cross-border investment.

Nestled between Switzerland and Austria, it shares the Swiss franc (CHF) and a customs and monetary union with Switzerland, while also being a member of the European Economic Area (EEA).

This rare combination gives investors the stability of Swiss financial policy with the market access of the EU single market, something no other jurisdiction provides.

This article explores expat investment advice in Liechtenstein: how foreigners can invest, residency limitations, the tax and banking system, wealth management structures, and crypto regulations.

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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.

Investing in Liechtenstein as a Foreigner

Foreigners can invest freely in Liechtenstein’s financial sector without living in the country. This is the first major distinction to understand.

Liechtenstein has an open capital market, meaning its banks, funds, and foundations serve international clients but its immigration and property markets remain tightly restricted.

As a result, most expat investors use Liechtenstein as a financial base, not a place of residence.

Expats generally access Liechtenstein through four main routes:

1. Private Banking and Wealth Management – The principality’s banks are known for conservative balance sheets, multilingual staff, and tailored portfolios. Opening an account as a non-resident typically requires proof of funds, identity, and purpose of investment, often with minimum deposits starting around CHF 250,000.
2. Liechtenstein Foundations and Holding Companies – Many international families use these for succession planning or cross-border asset protection. Foundations can hold shares, real estate, intellectual property, or portfolio assets while benefiting from low tax and no inheritance or gift taxes.
3. Investment Funds (UCITS and AIFs) – Liechtenstein is part of the EEA, so funds domiciled there can be passported across the European Union. This makes it a niche but powerful fund domicile for managers who want both EU market access and Swiss-style stability.
4. Crypto and Tokenized Assets – The Blockchain Act (TVTG) makes Liechtenstein one of the most advanced digital-asset jurisdictions in Europe. It regulates token issuance, custodianship, and trading under clear legal definitions, giving investors a regulated on-ramp for crypto exposure.

Unlike neighboring Switzerland, Liechtenstein offers no investor visa or automatic residence through capital contribution.

Its government issues only 89 residence permits per year for EEA citizens and a handful for non-EEA nationals, usually under exceptional circumstances.

As such, foreigners typically invest while living in nearby Switzerland or Austria, or remain fully non-resident and manage their accounts remotely through digital and fiduciary channels.

How to Get Residency in Liechtenstein

Residency is possible, but only under highly restricted conditions. Liechtenstein is one of the hardest countries in Europe to move to. The country’s population is barely 40,000, and the government strictly limits new arrivals to preserve its size and social balance.

Unlike other European jurisdictions, there is no investor visa or residence-by-investment scheme.

Each year, Liechtenstein issues:

• 89 residence permits for EEA and Swiss citizens, allocated by lottery; and
• A very limited number for non-EEA nationals, usually for employment or exceptional economic interest.

These quotas fill quickly, and waiting lists are common.

For most foreigners, the only feasible path to residency is through employment with a local company or as a cross-border commuter, that is, living in neighboring Switzerland or Austria and working in Liechtenstein under daily commute arrangements.

Taxation in Liechtenstein for Expats

Liechtenstein’s tax system follows a low-rate, broad-base model, combining modest national taxes with municipal surcharges. For expats, understanding the difference between resident and non-resident tax obligations is crucial.

Personal income taxes in Liechtenstein

• Residents are taxed on worldwide income. The national tax ranges from 1% to 8%, with municipalities adding a surcharge typically between 150% and 180%, resulting in a combined effective rate of around 2.5% to 22.4%.
• Non-residents are taxed only on income earned in Liechtenstein, such as from local employment or property.
• There are no inheritance or gift taxes, and no wealth tax.
• Capital gains on personal investments are generally tax-exempt unless related to property.

Corporate and investment taxation

• Corporate income tax is a flat 12.5% on net profits, one of the lowest in Europe.
• Minimum tax: CHF 1,800 annually, creditable against the profit tax.
• Participation exemption: Dividends and capital gains from qualifying holdings are tax-free.
• No withholding tax on dividends, interest, or royalties—an advantage for holding companies and cross-border investors.
• Real estate gains tax applies separately to local property disposals, with rates depending on profit and holding period.

Liechtenstein has DTAs with most European countries, the UK, Singapore, and several others. These treaties prevent double taxation and clarify cross-border treatment of dividends, interest, and royalties.

For expats, DTAs ensure that income from Liechtenstein structures or investments isn’t taxed twice in their home country.

Liechtenstein also shares Switzerland’s VAT system under their customs union. The current standard rate is 8.1%, with reduced rates of 2.6% (essentials) and 3.8% (accommodation).

This alignment ensures price stability and consistency with Swiss imports and exports.

Can a foreigner open a bank account in Liechtenstein?

Yes. For expats and international investors, Liechtenstein offers private banking, investment management, and corporate banking services that prioritize long-term wealth protection and confidentiality under full legal transparency.

Liechtenstein’s banking system is one of the most stable and discreet in the world, serving as a bridge between Swiss security and European regulatory access.

How to open a bank account in Liechtenstein as a non-resident

Foreigners can open bank accounts in Liechtenstein without residing in the country, provided they comply with strict due diligence and AML (Anti-Money Laundering) standards. Most banks require:

• Valid passport and proof of legal residence in your home country
• Proof of income or source of funds (employment, company ownership, or investment statements)
• Minimum deposits, often CHF 250,000 or higher for private banking clients
• Remote account opening is possible through certified intermediaries or fiduciaries

While requirements are strict, once onboarded, clients gain access to personalized portfolio management, multi-currency accounts, and a deep range of investment instruments across Europe and Switzerland.

All financial institutions operate under the Financial Market Authority (FMA Liechtenstein), which enforces European regulatory standards.

Banks participate in the Liechtenstein Deposit Guarantee and Investor Compensation Scheme (EAS), which protects deposits up to CHF 100,000 per depositor and investment claims up to CHF 30,000.

What is a Liechtenstein Foundation?

A foundation (Stiftung) is a separate legal entity created by a founder to hold and manage assets for a defined purpose, typically family wealth management, inheritance planning, or asset protection.

Unlike trusts, foundations are not contracts but legal persons that own their assets independently of the founder.

There are two main types:

• Private-benefit foundations – established for the benefit of a family or individual beneficiaries.
• Charitable/public-benefit foundations – established for social, cultural, or philanthropic purposes under government supervision.

Advantages of Stiftung for expat investors

1. Asset protection – Once transferred, assets are owned by the foundation, not the founder, shielding them from personal claims and liabilities.
2. Succession planning – Foundations provide continuity of ownership across generations without probate complications.
3. Tax efficiency – Subject to the standard 12.5% corporate income tax, but participation exemptions and absence of inheritance or gift taxes make them highly efficient.
4. Confidentiality and control – Founders can set detailed governance rules, including appointment of board members, protectors, and beneficiaries.
5. No withholding tax – Income distributions are generally free of withholding taxes, allowing seamless cross-border transfers.

Since 2021, Liechtenstein has maintained a Beneficial Owner Register, implementing the EU’s Fifth Anti-Money Laundering Directive. Foundations must record their controlling persons and make this information available to authorities, though not to the public.

This balance of transparency with privacy is central to Liechtenstein’s model: international compliance without exposure.

Compared with Switzerland or Luxembourg, Liechtenstein’s foundation laws are simpler, more flexible, and faster to administer. They combine the benefits of civil-law structure with common-law trust principles, making them adaptable to international legal systems.

Is crypto legal in Liechtenstein?

Yes, but more than that, Liechtenstein is one of the most advanced jurisdictions in the world for crypto regulation.

Its Blockchain Act, officially called the Token and Trusted Technology Service Provider Act (TVTG), came into force in 2020 and remains one of the most comprehensive legal frameworks for blockchain, tokenization, and digital assets anywhere in Europe.

What is the Liechtenstein TVTG Blockchain Act?

The TVTG defines digital tokens and blockchain service providers under a unified, technology-neutral legal framework.

It establishes clear roles for token issuers, custodians, exchanges, and wallet operators, all of whom must register with the Financial Market Authority (FMA).

This creates a legally recognized environment for digital assets while maintaining robust anti-money-laundering safeguards.

Unlike most countries that regulate only cryptocurrencies, Liechtenstein’s law applies to any tokenized right, including shares, bonds, property, and intellectual property.

This enables full asset tokenization, real-world assets represented as tokens, under clear legal ownership definitions.

Cryptocurrency taxes in Liechtenstein

• Crypto assets are treated as property for tax purposes, not currency.
• Trading gains are generally tax-free for private investors, though corporate or frequent trading may be subject to income tax.
• AML and KYC requirements apply to all token transactions exceeding regulatory thresholds.
• From 2026, Liechtenstein will implement the OECD Crypto-Asset Reporting Framework (CARF) and the revised Common Reporting Standard (CRS), introducing automatic cross-border reporting for crypto holdings, bringing digital assets under the same global transparency rules as traditional accounts.

Liechtenstein’s crypto ecosystem offers the rare combination of innovation and legitimacy. It is one of the few places where digital assets, tokenized securities, and blockchain businesses operate under full financial regulation rather than legal ambiguity.

For expats looking to diversify into crypto within a compliant, stable European framework, Liechtenstein represents the model of what a regulated digital-asset hub should look like.

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