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Economy and Banking Sector of Liechtenstein

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Liechtenstein: 0.0 - 0.0%

Withholding tax rates applied on payments of interest and dividends in Liechtenstein are shown in Table 1.

Dividends Interest
Natural Persons (residents) 0.0 %0.0 %
Natural Persons (non-residents) 0.0 %0.0 %
Table 1. Withholding tax rates in Liechtenstein.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Liechtenstein: 10 Signed Agreements

Liechtenstein signed DTAs which already came info force with the following jurisdictions:

AT Austria
DE Germany
HK Hong Kong
LU Luxembourg
SM San Marino
CH Switzerland
GB United Kingdom
UY Uruguay

There are also several agreements between Liechtenstein and other jurisdictions which were signed but haven't yet come into force:

MT Malta
SG Singapore

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 26 Signed Agreements

Liechtenstein signed TIEAs which already came info force with the following jurisdictions :

AD Andorra
AG Antigua and Barbuda
AU Australia
CA Canada
DK Denmark
FO Faroe Islands
FI Finland
FR France
DE Germany
GL Greenland
IS Iceland
IE Ireland
JP Japan
MC Monaco
NL Netherlands
NO Norway
KN Saint Kitts and Nevis
VC Saint Vincent and The Grenadines
SE Sweden
GB United Kingdom
US United States

There are also several agreements between Liechtenstein and other jurisdictions which was signed but haven't yet come into force:

BE Belgium
GG Guernsey
IN India
MX Mexico
ZA South Africa

Automatic Exchange: Starts in September 2017

Liechtenstein signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 51 Bilateral Agreements to Receive Information

Liechtenstein has signed bilateral agreements with 51 jurisdictions to automatically receive information:

AR Argentina
AU Australia
AT Austria
BE Belgium
BG Bulgaria
CA Canada
CN China
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
GL Greenland
GG Guernsey
HU Hungary
IS Iceland
IN India
IE Ireland
IM Isle of Man
IT Italy
JP Japan
JE Jersey
KR Korea, Republic of
LV Latvia
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
MC Monaco
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
RO Romania
SM San Marino
SC Seychelles
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
GB United Kingdom

Automatic Excnange: 58 Bilateral Agreements to Send Information

Liechtenstein has signed bilateral agreements with 58 jurisdictions to automatically send information:

AI Anguilla
AR Argentina
AU Australia
AT Austria
BE Belgium
BZ Belize
BM Bermuda
VG British Virgin Islands
BG Bulgaria
CA Canada
KY Cayman Islands
CN China
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
GL Greenland
GG Guernsey
HU Hungary
IS Iceland
IN India
IE Ireland
IM Isle of Man
IT Italy
JP Japan
JE Jersey
KR Korea, Republic of
LV Latvia
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
MC Monaco
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
RO Romania
VC Saint Vincent and The Grenadines
SM San Marino
SC Seychelles
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
TC Turks and Caicos Islands
GB United Kingdom

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Liechtenstein
IGA in effect since 19 May 2014, Model 1

Liechtenstein has FATCA agreement with the U.S. in effect since 19 May 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Liechtenstein are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Liechtenstein's financial accounts hold in U.S. financial institutions will be reported to Liechtenstein's authorities.

Further Information