🇱🇮 Annual Compliance — Liechtenstein

Using Liechtenstein as a cheap offshore jurisdiction

Fix: Liechtenstein is not cheap. The mandatory trustee, minimum capital, and professional fees make total annual costs CHF 10,000–30,000+. If you need a simple zero-tax holding structure, BVI or Seychelles are far less expensive. Liechtenstein's value is in its EEA access, zero withholding taxes, and unique legal vehicles (Stiftung, Anstalt).

Ignoring the substance requirements for tax treaty benefits

Fix: While Liechtenstein does not have formal economic substance rules identical to the Crown Dependencies, the tax treaty network and EEA membership require genuine activities to qualify for benefits. A shell entity with no management or decision-making in Liechtenstein may be challenged by foreign tax authorities under treaty anti-abuse provisions.

Assuming a Liechtenstein foundation (Stiftung) is automatically tax-exempt

Fix: Liechtenstein foundations that conduct commercial activities are subject to the standard 12.5% corporate tax. Only foundations that exclusively hold and manage private assets (no commercial activity) benefit from the minimum tax of CHF 1,800/year. Structure the foundation's activities carefully with a local tax adviser.