Liechtenstein: Taxes and Costs

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Home › Europe › Liechtenstein › Taxes and Costs

Last Updated: Nov 10, 2008

Liechtenstein's complicated tax system

Effective Tax Rate on Rental Income
Monthly Income	€1,500	€6,000	€12,000
Tax Rate	nil	nil	nil
Click here to see a worked example
Source: Fiduciana Disclaimer

INDIVIDUAL TAXATION

Non-residents are taxed on their income from Liechtenstein sources. Liechtenstein asset and income tax law is governed by the principle of family taxation, which means that married couples are assessed and taxed jointly.

INCOME TAX

Taxes are assessed on the basis of taxable assets and taxable income. The tax rate is determined annually by Parliament in fractions or multiples of the legal tax unit (0.1% for taxable assets, 2% for taxable earnings); it is currently 54% of the legal tax unit.

Tax progression surcharges of 5% to 425% are added to the simple national tax, i.e., the amount of asset and income tax calculated on the basis of the tax rates mentioned above, depending on the amount of the tax. Municipalities add additional surcharges of at most 200% to the overall national tax liability.

Assuming a municipal tax surcharge of 200%, the minimum and maximum tax rates are as follows: at least 0.162% and at most 0.8505% for asset tax; at least 3.24% and at most 17.01% for income tax.

TAX RATES
	MINIMUM RATE	MAXIMUM RATE
Assets Tax	0.162%	0.8505%
Income Tax	3.24%	17.10%

REAL ESTATE PROFITS TAX

Gains or profits realized from the sale of Liechtenstein property are subject to a special tax called real estate profits tax. Taxable gains or profits are computed by deducting the investment costs (acquisition costs and improvement costs) from the sales proceeds. An allowance of CHF1,500 (€993) may also be deducted.

Gains or profits are then taxed at progressive rates. Different sets of progressive rates apply, depending on the seller’s ownership period before he sold the property.

REAL ESTATE PROFITS TAX
HOLDING PERIOD	TAX RATE
	Minimum Rate	Maximum Rate
Up to 3 years	6.48%	34.02%
3 years – 5 years	5.40%	28.35%
5 years – 10 years	4.32%	22.68%
Over 10 years	3.24%	17.01%

NET WORTH TAX

The net worth tax is levied on the net worth of the taxpayer’s assets. Liabilities are deducted when computing for the tax base. Net worth up to CHF20,000 (€13,241) are tax-exempt, the tax threshold becomes CHF30,000 (€19,862) if no income is reported. The remaining balance is then taxed at progressive rates, with a maximum rate of about 0.9% (depending on the commune) on net worth exceeding CHF350,000 (€231,719).

Liechtenstein - more data and information

Guide to buying houses and registering property sales in Liechtenstein