Liechtenstein

Individual - Other taxes

Last reviewed - 20 December 2019

Social security contributions

The taxpayer’s share of social security contributions (old-age and dependent pension schemes, disability insurance) is 4.70% (with an upper limit of 18% for self-employed and employed individuals) and 0.5% for unemployment insurance on the first CHF 126,000 of compensation.

Real estate profit tax

Capital gains from the sale of real estate, or equivalent actions with the same result, are subject to a separately assessed real estate profit tax. The taxable gain is generally the difference between proceeds of the sale and the original purchase price of the property plus any capital expenditure incurred. The basic tax rate is the income tax rate for singles without children, which ranges between approximately 3% and 24%, depending on the amount of taxable real estate gain. The transfer of the economic ownership of real estate (e.g. via the sale of the majority of the shares in a real estate company) may trigger real estate tax as well.

Consumption taxes

Value-added tax (VAT)

Liechtenstein has adopted the VAT law of Switzerland, while having its own VAT administration.

The general VAT rate is 7.7%. A reduced rate of 2.5% is applicable to deliveries of food, drugs, newspapers, magazines, and books. Furthermore, lodging/accommodation is taxed at a reduced rate of 3.7%. Note that various services are VAT-exempt (e.g. health, social security, education, banking, insurance).

See the Other taxes section in the Corporate summary for further information.

Wealth tax

Movable and immovable assets are subject to wealth tax. In principle, wealth tax is levied based upon the fair market value.

The taxable wealth is multiplied by a standard interest (2019: 4%) to calculate a notional income, which is subject to income tax together with other income.

Inheritance, estate, and gift taxes

Liechtenstein does not levy inheritance, estate, or gift taxes.

Dedication tax

Dedication of assets to a non-taxable entity (non-profit organisation according to Art. 107 Abs. 4a PGR) or under circumstances that make the assets no longer subject to wealth taxation triggers a tax of 3.5% of the wealth tax value of the contribution. The donator is taxable.

To the extent that, due to the transfer of wealth to a legal person or special asset dedication not exempted from tax liability pursuant to article 107 paragraph 4a PGR, this wealth is no longer subject to the wealth tax and privileges or shares do not become liable to the wealth tax, the transferor shall pay a tax in the amount of 3.5% of the wealth-tax value of the contribution.

In addition to the state tax of 3.5%, there will be a surcharge for the community of 3.5% multiplied by 150% to 250%; consequently, the maximum dedication tax is 10.5%.