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Why Liechtenstein

Sustainability and philanthropy

Sustainability includes social, economic, ecological, and financial dimensions. Liechtenstein’s actions are geared towards these different aspects of sustainability to assume responsibility for future generations. For example, the Principality is the first country in the world to be able to call itself an “energy country.” It has the world’s highest capacity of photovoltaics per capita. Liechtenstein also offers first-class conditions for philanthropic engagement.

Climate Strategy Liechtenstein 2050

The climate target for 2050 is enshrined in law. Liechtenstein must reduce its greenhouse gas emissions to net zero by 2050. Domestic emissions are to be reduced by 90%, and the remaining unavoidable 10%, known as base emissions, are to be offset. To also reduce the emissions caused by Liechtenstein’s economy abroad, the strategy defines measures for sustainable consumption and a sustainable financial centre. Liechtenstein thus also fulfils the requirements of the Paris Agreement. Liechtenstein is a party to all important multilateral climate agreements.

Sustainable Development Goals (SDGs)

At the Sustainable Development Summit in September 2015, the UN member states adopted the 2030 Agenda for Sustainable Development. In the negotiations on the Agenda, Liechtenstein particularly advocated for the rule of law and gender equality, as well as for an effective mechanism to review the implementation of the Agenda. In 2019, Liechtenstein presented the first voluntary report on national implementation of the 2030 Agenda for Sustainable Development at the UN High-Level Political Forum in New York. The second voluntary report was presented in 2023. 

Liechtenstein Initiative on Finance Against Slavery and Trafficking (FAST)

Over 40 million people today live in slavery-like conditions. Every year, this generates revenue amounting to USD 150 billion. As a contribution to achieving the UN 2030 Agenda, Liechtenstein launched the “Liechtenstein Initiative on Finance Against Slavery and Trafficking” (FAST) in 2021. This is a public-private partnership that puts the global financial sector at the centre of the fight against modern slavery and human trafficking. FAST was launched by the Permanent Mission of Liechtenstein to the UN in New York.

Top location for charitable foundations

Liechtenstein offers the best conditions for philanthropic engagement. Named the world’s number 1 philanthropy location in 2022 by the Global Philanthropy Environment Index, Liechtenstein impresses with its flexible foundation law, innovative company law, short official channels, and high level of advisory expertise. Around 1,400 charitable foundations use these ideal framework conditions in Liechtenstein for their social or ecological commitment. 

Liberal foundation law

The Liechtenstein foundation law meets all international standards and, at the same time, guarantees a high degree of liberalism and corresponding freedom regarding the structure of a foundation. This allows the foundation to operate globally without the obligation to carry out a minimum proportion of its activities in Liechtenstein. The supervisory system consists of a two-tier control system in which the Foundation Supervisory Authority, together with a mandatory court-appointed auditor, is responsible for the supervision of charitable foundations. The foundation supervision system is designed in this way to provide an efficient system in line with modern foundation governance while guaranteeing a high level of privacy protection.

Innovative corporate law

Liechtenstein is one of the few countries that offer the option of setting up charitable trusts. For philanthropists from Anglo-American countries, trusts provide a familiar alternative to foundations. Liechtenstein also has the “Protected Cell Company” (PCC) organisational form, which consists of two parts: a core and one or more segments that are strictly separated from each other in terms of organisation and even liability.