Liechtenstein
An attractive location
The Liechtenstein fund centre
Although by international standards Liechtenstein is one of the smaller locations, for many industry experts it is the hot tip when it comes to choosing a modern “fund boutique”. The Principality earns this “boutique” label because its modern, EU-compatible fund legislation leaves plenty of scope for customised solutions. In addition, as a fund centre Liechtenstein reaps especially strong benefits from the robust investor protection firmly embedded in local law.
No tax burden at fund level
Liechtenstein investment funds (undertakings for collective investment in transferable securities, or UCITS, and alternative investment funds, or AIFs) are themselves not subject to taxation. This means that at the level of the investment fund itself (i.e. dividend and interest income, price gains), no tax is payable. At the level of the individual investor a tax liability may exist under the tax law of the country of domicile.
EU compatibility thanks to the “European passport”
EEA membership means that, providing certain conditions are fulfilled, Liechtenstein’s fund management companies and its UCITS-and AIF-compliant investment funds enjoy simple, discrimination-free access to the European Union’s single market.
Fund design and structuring
Funds may be given contractual or corporate legal form and structured as self-managed or third-party managed investment companies with variable capital (AGmvK; usually known by the French acronym “SICAV”).
Qualified investors
Thanks to streamlined procedures, qualified investors can launch funds in Liechtenstein in no time at all.
Investor protection
The Liechtenstein fund industry and financial centre in general are independently supervised and governed by modern, EU-compatible legislation. Investor protection is firmly embedded in Liechtenstein investment fund law and is constantly safeguarded by the Liechtenstein Financial Market Authority (FMA) and by independent audit firms, which are likewise subject to FMA authorisation.
The professional application of international diligence duties and robust protection of privacy by the custodian banks which hold the fund units in safekeeping make for a highly effective bridging of the gap between the interests of the financial services industry and those of the client.
Fast and efficient
Liechtenstein’s financial institutions and official authorities work very well together. Intensive communication, short official channels and rapid decision-making mean that a fund can be set up within the legally prescribed time limits. This gives fund promoters a high level of planning certainty.
Professional environment
The expertise built up over decades by the Liechtenstein financial centre is seen in ample measure both in its financial institutions and industry associations and in the relevant official bodies.
Close links with Switzerland
Apart from being geographical neighbours, Liechtenstein and Switzerland are tightly linked by their economic, customs and monetary union.
Political and economic stability
The Liechtenstein financial centre stands out by virtue of its competitiveness and social, legal and economic stability. Both Moody’s and Standard & Poor’s give the country the top-notch rating AAA.
Conservative-liberal economic philosophy
The conservative-liberal mindset of the Principality’s government and people is reflected in the low level of State interference in business activities.