Tax
A flat 12.5% corporate tax, Swiss VAT, and wealth taxed as a notional return
Liechtenstein levies a flat 12.5% corporate income tax on worldwide income, with a minimum tax, and a progressive personal income tax reaching about 22.4% including municipal surcharges. Because it is in a customs union with Switzerland, it applies Swiss VAT at 8.1%, and wealth is taxed by adding a 4% notional return to taxable income.
Key rules
- Corporate income tax is a flat 12.5% on worldwide income, subject to a minimum tax of CHF 1,800.
- Personal income tax is progressive, reaching roughly 22.4% including municipal surcharges.
- Wealth is taxed by imputing a 4% notional return that is added to taxable income, rather than as a separate rate.
- Swiss VAT applies at 8.1% under the customs union with Switzerland.
Governing law
- Tax Act (Steuergesetz, SteG)Income, corporate and wealth taxation
- Swiss VAT Act (applied via the customs union)8.1% standard rate
Penalties and consequences
- Surcharges and interest for late or understated tax
- Penalties for tax fraud
In practice
The notional-return approach to wealth means there is no standalone wealth-tax rate; instead an imputed yield feeds into income tax. The low flat corporate rate is central to Liechtenstein's position as a financial centre.