Why Liechtenstein
Legal and tax conformity
Liechtenstein was one of the first countries to commit to the applicable international standards on transparency and tax cooperation and pursues a clear strategy of tax compliance. This is reflected, among other things, in the Liechtenstein Declaration of 2009 and the government’s financial centre strategy. Liechtenstein is actively expanding its network of bilateral double taxation agreements on an ongoing basis.
EU-compatible financial market regulation
Liechtenstein is a member of the European Economic Area (EEA) and has complete freedom to provide services in all countries of the European Union (EU) and the EEA (plus Norway and Iceland). This means that financial market participants are subject to the same legal framework conditions as in EU countries.
Automatic exchange of information (AEOI)
With the Liechtenstein Declaration, Liechtenstein committed itself to implementing the global standards developed by the OECD for transparency and the exchange of information in tax matters and to intensively combating non-compliance with foreign tax laws. Together with numerous other countries, including all major financial centres, the Principality of Liechtenstein has committed to introducing the global OECD standard for transparency and the exchange of information in tax matters, the so-called “Automatic Exchange of Information” (AEOI). The aim of this new global standard is to prevent cross-border tax evasion.
Double taxation agreements (DTA)
When it comes to international tax law, Liechtenstein maintains bilateral tax treaties with many countries to avoid double taxation in cross-border situations. Liechtenstein recognises the legitimate tax claims of the partner states and protects the right to confidentiality and privacy of clients. With the double taxation agreements, Liechtenstein is committed to uniform standards and thus to avoiding double taxation of income from cross-border activities. Double taxation agreements currently exist in 23 countries.
Transparency
Liechtenstein actively participates in the relevant committees of the OECD and the Global Forum. It is a recognised partner in the international community. The implementation of the standards on the exchange of tax information in Liechtenstein was awarded the top rating of “largely compliant” by the Global Forum. Liechtenstein has also committed to the OECD measures on the undesirable shifting of corporate profits (BEPS) and is implementing them. In its fifth report, the Council of Europe’s Committee of Experts on Combating Money Laundering and Terrorist Financing (Moneyval) recognised Liechtenstein’s high level of effectiveness and ranked the country among the top 5 of its member states.
Recognised Financial Market Authority (FMA)
As an independent, integrated supervisory authority, the FMA ensures the stability and credibility of the financial market, the protection of clients, the prevention and combating of abuses, and the implementation of and compliance with international standards. The FMA is represented in all relevant supervisory organisations at global and European level. By being recognised as an equivalent supervisory authority, the FMA makes an essential contribution to securing international market access for the Liechtenstein financial intermediaries.