Advantages of Liechtenstein Foundations

Lavrentios Lavrentiadis

Foundations in Liechtenstein offer several advantages, making them an attractive option for wealth management, asset protection, and estate planning. Here are the key benefits:

1. Strong Asset Protection

  • Liechtenstein foundations provide high levels of asset protection, shielding assets from creditors, lawsuits, and political instability.
  • The foundation is a separate legal entity, meaning founders do not own the assets, which helps in protecting wealth from personal liabilities.

2. Privacy & Confidentiality

  • Liechtenstein has strict privacy laws, ensuring that the identity of founders and beneficiaries remains confidential.
  • Unlike some jurisdictions, foundation documents do not need to disclose beneficiaries in public records.

3. Estate & Succession Planning

  • Foundations in Liechtenstein allow flexible inheritance planning, ensuring that wealth is distributed according to the founder’s wishes.
  • Forced heirship rules do not apply, allowing international families to structure their succession as they see fit.

4. No Beneficial Ownership (BO) Registration

  • Unlike many other countries, Liechtenstein does not require public registration of beneficial owners, ensuring greater discretion.

5. Tax Efficiency

  • Liechtenstein foundations benefit from a low flat tax rate of 12.5% on net profits.
  • If a foundation holds assets but does not engage in commercial activity, there may be no additional taxes.
  • Distributions to non-residents are generally tax-free in Liechtenstein.

6. Legal Certainty & Stability

  • Liechtenstein has a longstanding legal tradition of strong property rights and a stable regulatory environment.
  • It is a financially and politically stable jurisdiction, making it attractive for long-term wealth preservation.

7. Flexibility in Structure & Purpose

  • Foundations can be used for philanthropy, family wealth management, inheritance planning, or corporate holding structures.
  • They can be revocable or irrevocable, allowing customization based on the founder’s needs.

8. No Minimum Capital Requirement (In Some Cases)

  • While the standard minimum capital requirement is CHF/EUR 30,000, some structures allow for flexibility in funding.

9. Recognized Under International Law

  • Liechtenstein is a member of the European Economic Area (EEA) and follows international compliance standards, making its foundations widely accepted in financial and legal matters.

10. Long-Term Existence

  • A foundation in Liechtenstein can exist indefinitely or for a defined period, ensuring longevity for wealth protection.