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Liechtenstein and Croatia sign double taxation agreement

After the DTA was initialled in September 2024, Liechtenstein and Croatia have now officially signed it.

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Prime Minister Daniel Risch and the Prime Minister of Croatia, Andrej Plenkovic, signed the double taxation agreement (DTA) between Liechtenstein and Croatia on Wednesday, 22 January 2025, during the World Economic Forum in Davos.

The agreement regulates the elimination of double taxation in cross-border situations. It is based on the international OECD standard and takes into account the requirements of the OECD/G20 BEPS project (Base Erosion and Profit Shifting) to prevent tax evasion and tax avoidance in a cross-border context.

The agreement also regulates the avoidance of double taxation with regard to income and wealth taxes. In order to promote cross-border investments, no withholding tax is payable on group dividends.

In addition, the withholding tax on other dividends, interest and royalties is reduced to 5 percent. The DTA also contains provisions on the treatment of asset structures, investment funds, pension funds and non-profit organisations under treaty law. The agreement provides rules for a mutual agreement procedure to resolve difficult double taxation cases.

The exchange of information is based on the international standard, with the automatic exchange of information continuing to be handled via the AEOI agreement between Liechtenstein and the EU. Furthermore, administrative enforcement assistance has been agreed.

The agreement is an important step towards expanding Liechtenstein’s DTA network. It increases legal certainty for investments and strengthens economic cooperation between Liechtenstein and Croatia.