Liechtenstein (LI)
Liechtenstein is a tiny constitutional principality nestled between Switzerland and Austria — one of only two doubly landlocked countries in the world — yet it punches far above its 39,000-person weight as one of the wealthiest nations on earth per capita.
Capital: Vaduz
Region: Europe
Language: German
Currency: CHF (Fr)
Cost of living: Very expensive (index 92)
Emergency: 112
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Business Setup
Start a business or go freelance in Liechtenstein.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Ensure you have a valid residence permit (Ausländerausweis) with permission to be self-employed — not all permit categories allow self-employment. Check with the Ausländer- und Passamt.
- 2 Register your Einzelunternehmen with the Handelsregister (commercial register) at the Amt für Volkswirtschaft (Office of Economic Affairs). If annual turnover exceeds CHF 100,000, registration is mandatory.
- 3 Register with the AHV-Anstalt (Social Insurance Office) for self-employed AHV/IV contributions — higher rate than employed persons (8.7% total vs 4.35% employee share).
- 4 Register for MWST (Mehrwertsteuer / VAT) if annual taxable turnover exceeds CHF 100,000 (Liechtenstein applies the Swiss threshold). Apply at the Steuerverwaltung.
- 5 Set up accounting records (Buchhaltung) — required for tax purposes. Use Swiss-compatible accounting software (Abacus, Banana Accounting, or hire a Treuhänder / fiduciary).
- 6 File your annual Steuererklärung (tax return) with the Steuerverwaltung by 31 March, including Schedule for self-employment income.
- 7 Arrange a Pensionskasse (BVG second pillar) for yourself — as self-employed, you have no employer to contribute. Join a BVG collective foundation or cantonal/principality-level arrangement.
- 8 Consider income protection insurance (Erwerbsausfallversicherung) — not mandatory but important given no employer sick pay.
Tax registration
Self-employed persons register directly with the Steuerverwaltung. Income from self-employment is included in the annual Steuererklärung. Advance tax payments (Vorauszahlungen) are set based on estimated annual income. MWST registration at the Steuerverwaltung is required once turnover exceeds CHF 100,000 per year.
VAT threshold
CHF 100,000 annual turnover (same threshold as Switzerland). The standard MWST rate is 8.1% on most services and products, 2.6% on food and certain goods. File MWST returns quarterly or semi-annually. Cross-border services follow the destination principle.
Invoicing
Invoices must include: company/individual name and address, UID (Unternehmens-Identifikationsnummer — business ID), client name and address, invoice date, sequential invoice number, description of service/goods, unit price, total excl. MWST, MWST amount (8.1%), total incl. MWST. For B2B invoices, include the client's UID if known. Electronic invoicing is increasingly standard.
Social security
Self-employed persons in Liechtenstein pay AHV/IV/EO at a combined rate of approximately 10.025% of net self-employment income (both employer and employee shares combined). Register immediately with the AHV-Anstalt. Unemployment insurance (ALV) is generally NOT available to self-employed — no Arbeitslosengeld if the business fails. Pension (BVG second pillar): voluntary for self-employed but strongly recommended. Maternity allowance (EO) is available to self-employed mothers.
💡 Liechtenstein is an excellent jurisdiction for self-employment and freelancing from a tax perspective — the flat 8% national income tax with municipal surcharge results in effective rates of 12–20%, far below most European countries. The key challenge is obtaining the residence permit with self-employment rights — the quota system limits new residents and the Ausländer- und Passamt scrutinises whether self-employment creates genuine economic value. Many high-value freelancers (financial consultants, IT professionals, engineers) find Liechtenstein an exceptionally attractive base. A Treuhänder (fiduciary/accountant) is strongly recommended for self-employed persons given the complexity of Liechtenstein/Swiss aligned tax law.
🏢 Business Structures
Einzelunternehmen · Einzelunternehmen (Einzelfirma)
Sole trader / Sole proprietorship
CHF 0 (no minimum capital)
Min. capital
1–2 weeks. Registration with the Handelsregister via the Liechtenstein commercial portal.
Setup time
Liability: Unlimited personal liability — the owner is personally responsible for all business debts.
Setup cost: Handelsregister (commercial register) entry: CHF 100–200. For businesses above CHF 100,000 annual turnover, registration in the Handelsregister is mandatory.
Best for: Freelancers, consultants, and small service providers. Simplest and cheapest form. Common for craftspeople and independent professionals.
GmbH · Gesellschaft mit beschränkter Haftung
Private limited company
CHF 30,000 minimum share capital (can be paid in as contributions in kind)
Min. capital
2–4 weeks including notary appointment and Handelsregister registration.
Setup time
Liability: Limited — shareholders are not personally liable beyond their share capital.
Setup cost: Notary fees: CHF 1,500–3,000. Handelsregister registration: CHF 500–1,000. Legal/accounting setup: CHF 2,000–8,000. Plus CHF 30,000 minimum capital.
Best for: Small and medium businesses wanting limited liability. The most common business entity in Liechtenstein for operating companies. Required when hiring staff in most sectors. Corporate tax rate of 12.5% flat is very competitive.
AG · Aktiengesellschaft
Public limited company / Joint stock company
CHF 50,000 minimum share capital (fully paid up)
Min. capital
3–6 weeks including notary and full Handelsregister process.
Setup time
Liability: Limited — shareholders are not personally liable beyond their investment.
Setup cost: Notary and registration fees: CHF 3,000–8,000. Legal preparation of articles of association: CHF 5,000–20,000. Plus CHF 50,000 minimum capital.
Best for: Larger companies, holding structures, and those planning significant capital investment. Liechtenstein AGs are popular for private wealth holding and investment vehicles given the competitive corporate tax rate.
Anstalt · Anstalt (Liechtenstein Establishment)
Liechtenstein Establishment (unique to Liechtenstein)
CHF 30,000 minimum capital
Min. capital
3–8 weeks including notary and Handelsregister.
Setup time
Liability: Limited — a sui generis entity unique to Liechtenstein law.
Setup cost: Higher setup costs: notary CHF 3,000–5,000; legal: CHF 5,000–15,000. Annual maintenance costs apply.
Best for: Private wealth management, family patrimonies, and asset protection. The Anstalt is a uniquely Liechtenstein legal form — neither a company nor a foundation — used extensively in private banking and asset protection structures. One of the reasons Liechtenstein is a global private wealth hub.
Stiftung · Stiftung (Foundation)
Foundation
CHF 30,000 minimum foundation capital
Min. capital
4–8 weeks.
Setup time
Liability: Assets are separated from founder — foundation is independent legal entity.
Setup cost: Notary and legal fees: CHF 5,000–20,000+ depending on complexity. Annual supervision fees.
Best for: Philanthropy, family wealth preservation, succession planning, and asset protection. Liechtenstein foundations (Stiftungen) are internationally recognised vehicles for private wealth management and charitable purposes. Liechtenstein's foundation law is among the most flexible and respected in the world.
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