Political and financial equilibrium, legal assurance and superior quality service have identified this astonishing principality as being a financial juggernaut for hundreds of years. Its asset management sector and the business-oriented corporate and tax law constitute strong benefits it provides as a global financial centre for the ultra-high net worth.
Having a lean, customer-focused public sector, Liechtenstein provides a constant legal and public system along with a originally liberal economy. Public finances on a sound footing, direct administrative operations and a transparent and predictable tax and legal system add to Liechtenstein’s attractiveness as a place to do business and a economical centre.
The financial sector is a significant employer and an appealing one, employing a greater-than-average variety of professional staff. The establishment of the first bank in Liechtenstein in 1861 marked the early stages of a extensive heritage that continues to this day.
Liechtenstein’s banks feature financial durability and stability. There is a strong, high-quality capital base and are some of the best-capitalized banks in Europe. Client deposits are covered by a up-to-date, EU-compatible depositor protection structure. Liechtenstein’s AAA rating from Standard & Poor’s underlines the country’s reliability as a financial centre.
Thanks to Liechtenstein’s membership of the European single market, its banks enjoy full freedom to deliver support in every EEA country. This distinctive position facilitates the Liechtenstein financial centre to deliver appealing diversification chances to investors with a global concentration.
As a compact, specialized financial centre, Liechtenstein integrates many years of practical know-how with experience in private banking. Qualified advice and high-quality service are traditional strengths of Liechtenstein’s banks and key factors in their achievements. The banks also have a pool of specialists to draw on at home and abroad.
The Liechtenstein fund law has been carved on the European investment fund law on account of its membership of the EEA. As European law is actually incorporated into the EEA Agreement, identical rights and responsibilities implement in Liechtenstein same as in all of the EU Member States. Consequently, Liechtenstein enjoys full access to the European internal market and offers the greatest level of legal assurance for investors.
Liechtenstein has presented rigorous legislations to protect investors within the funds sector. Both the regulator and independent auditors scrutinise the activities of management organizations and fund managers inside the Principality constantly. The Liechtenstein investment fund market gains as a result of access to a remarkably reliable banking system. The banks of the Principality are amongst the best-capitalised in the world and are staffed with well-skilled employees throughout the entire region. A substantial proportion of employed in the regional financial services sector come from the neighbouring countries of Switzerland and Austria. The long-standing heritage of Liechtenstein’s financial centre and vicinity to the Zürich stock market assist in the recruiting of qualified employees.
Liechtenstein is amongst the only 16 states in the world which has a AAA rating from both Moody’s and Standard & Poor’s.
Liechtenstein is a constitutional monarchy determined by democratic parliamentary concepts. The acting Head of State is H.S.H. Prince Alois von und zu Liechtenstein. The Principality has experienced the highest level of political, social, and financial consistency over the past 3 centuries accompanied by a forward-looking, pro-business mindset.
Liechtenstein and Switzerland have a currency as well as custom union. The use of the Swiss Franc within the Principality has supplied major security since 1923. A Liechtenstein-domiciled fund, nevertheless, would definitely be in a position to use any other acknowledged currency for investment objectives as well.
At the commencement of 2011 an entirely transformed Tax Act developed in force in Liechtenstein. The current law is internationally compatible and matches European Laws. Liechtenstein investment funds are prone to favourable tax rules and may very well be regarded as tax-advantaged investment vehicles. They are, for example, not subject to any local fiscal charges in the form of a capital tax or VAT. Nevertheless, the individual investor may require a personal tax obligation under the laws of the country of domicile. Whatever the case you should consider guidance from a professional and perhaps a tax ruling for clarifying individual instances.
As a result of strict adherence to a white money strategy, Liechtenstein continues to be identified as a leading jurisdiction for investment funds especially in the context of the European banking sector.
The conservative liberal attitude of Liechtenstein’s Government along with its population is the factor for restricted state intervention in the economy.