LOW TAX COUNTRIES
Andorra
Anguilla
Antigua & Barbuda
Aruba
Australia
Bahamas
Barbados
Belize
Bermuda
British Virgin Islands
Cayman Islands
Cook Islands
Costa Rica
Cyprus
Dominica
Dominican Republic
Gibraltar
Hong Kong
Isle of Man
Jersey & Guernsey
Liechtenstein
Luxembourg
Malta
Mauritius
Panama
Singapore
St.kitts & Nevis
Switzerland
Turks & Caicos
Vanuatu
Index of Articles
|
|  |
|
LIECHTENSTEIN
About Liechtenstein
The Principality of Liechtenstein (German: Fürstentum Liechtenstein) is a small, doubly landlocked country in Central Europe, bordered by Switzerland to its west and by Austria to its east. Mountainous, it is a winter sports resort, though it is perhaps best-known as a tax haven. Despite this, it is not heavily urbanized (like the Principality of Monaco or Gibraltar) but many cultivated fields and little farms characterize its landscape both in the north (Unterland) and in the south (Oberland). It is the smallest German-speaking country in the world.
The Principality of Liechtenstein was established within the Holy Roman Empire in 1719; it became a sovereign state in 1806. Until the end of World War I, it was closely tied to Austria, but the economic devastation caused by that conflict forced Liechtenstein to enter into a customs and monetary union with Switzerland. Since World War II (in which
Liechtenstein remained neutral), the country's low taxes have spurred outstanding economic growth. Shortcomings in banking regulatory oversight have resulted in concerns about the use of the financial institutions for money laundering.
Liechtenstein has, however, implemented new anti-money-laundering legislation and recently concluded a Mutual Legal Assistance Treaty with the US
| Liechtenstein |
|
| Capital |
Vaduz
47°08′N 9°30′E |
| Official languages |
German |
| Area |
160 km² (215th)
62 sq mi |
| Population
|
33 987 (211th) |
| GDP (PPP)
|
$2,850 million (184) |
| per capita
|
$83,700 |
| Currency |
Swiss franc (CHF) |
| Time zone |
(UTC+1) |
| Dialling code |
+423 |
LIECHTENSTEIN ECONOMY
Liechtenstein is in the EEA but Not In the EU
Liechtenstein is a constitutional monarchy, has a land area of about 160 sq km (60 sq m), a population of 33,000, and is sandwiched between Switzerland and Austria. It has a customs union and a monetary union with Switzerland.
Liechtenstein belongs to EFTA, and since 1995 to the EEA; it is member of the UN. The official language is German; English and French are also spoken, with a local dialect used in everyday life.
A referendum held in March, 2003, gave the ruling Prince Hans-Adam II sweeping new powers, including the right to veto parliamentary bills, sack the entire government and introduce emergency rule.
Economy Buoyant Based on Industry and Financial Services
Liechtenstein was primarily an agrarian country until its economic union with Switzerland (1922 and reinforced in 1980) propelled it into rapid industrial and financial development. The princely family is highly active in leading the country economically. GDP per head is $36,000, inflation and unemployment are below 2%. Until recently there were trading and budget surpluses, but in 2002 the government fell into deficit. However, the country has substantial reserves and there is no national debt. The currency is the Swiss Franc, and there are no exchange controls. Membership of the EEA gives
Liechtenstein access to the single market of the EU in most respects.
In October, 2003, in a dramatic development, Liechtenstein refused to sign an agreement to expand the EEA to incorporate the ten nations due to accede to the EU in 2004, apparently in order to get back at the Czech Republic and Slovakia for the 'Benes' decree in the 1940s which resulted in the expulsion of Liechtenstein nationals and the expropriation of their property. But at the end of November Liechtenstein gave in and signed up.
Liechtenstein's Low tax Specialisations
Liechtenstein has moderate domestic taxes, but has specialised and very flexible types of 'holding' and 'domiciliary' company as well as 'establishments' and 'foundations' which are tax-exempt, but cannot usually trade inside the country. There are 35,000 of these 'offshore' entities, which provide 30% of state revenues. There is also a trust regime based on common law, although
Liechtenstein is a civil law jurisdiction. The headline Liechtenstein product is private banking, although holding companies must run it close in terms of asset value; trusts have also been successful.
After the EU reached final agreement on its Savings Tax Directive, under which an information-sharing regime was initiated by 12 out of 15 existing member states in 2005, Liechtenstein chose, like Switzerland, to impose a withholding tax on returns on savings paid to citizens of EU member states, rather than compromise banking secrecy.
FAFT Blacklist
In June 2000, Liechtenstein was identified by the FATF as a non-cooperative and harmful tax haven. The result of this is that Liechtenstein was one of fifteen tax jurisdictions placed on an FATF blacklist. Each 'harmful' tax haven had a year in which to correct its tax regulations and legislation, once it has done so the tax haven will be removed from the list. Liechtenstein was removed from the list in 2001 after tightening up its money laundering legislation.
By mid-2002, the FATF was able to say that Liechtenstein was 'off its radar screen'.
Plenty of Lowish Taxes in Liechtenstein!
Profits Tax on business and Income Tax on individuals, both at 18% on higher incomes, don't sound too bad, but the Net Worth Tax at 2% for business and 1% for individuals can be expensive. There is no separate capital gains tax (they are taken into income) but there is a moderate tax on real estate gains. Estate and gift taxes vary but are low within the family; VAT is 6.5%. There is only one tax treaty, with Austria, but withholding tax on dividends and some other payments is only 4%.
Immigration Controlled by Residence and Work Permits
EEA nationals have some qualified freedom of movement in Liechtenstein, but in practice non-nationals need residence and work permits. There is a substantial commuting population from Austria and Switzerland.
~ Books About Liechtenstein~
Be sure to check out our range of expert reports from The Hometown-Property Tax Bookshop
Hometown-Property has teamed up with Taxcafé to bring you a variety of useful resources to help you pay less capital gains tax, inheritance tax & other taxes.
Though written originally for the UK market, this acclaimed informative series, written by highly qualified tax authors and tax experts, is equally relevant for residents of North America, Europe and Australasia.
 ...if you are looking for a new home, an investment or somewhere to rent
 ...if you have a property to sell or to let (including vacation properties)
Whether you are a buyer or a seller, whether you have a property to let or want to rent somewhere for your next vacation, Hometown-Property is here to help.
P.S. Special low-cost deals available at Hometown-Property until midnight,
[CaRP] Can't open cache file.
Real Estate Investing For Real | A BiggerPockets Investment Property Blog
Learn, Network, Invest
• The Most In-Depth Case Study Ever!
by Jason Hanson
3 Dec 2008 at 6:12am
My boredom is going to make you rich! Check it out. We entrepreneurs get bored easily. Instead o...
• My Investing New Years Resolution starts in December!
by Rosie Nieto
2 Dec 2008 at 9:24pm
…and I mean it! For the past couple of years I have taken December as my play time. The word o...
• How To Build Your Real Estate Investing Business Using the Internet
by Peter Kolat
2 Dec 2008 at 1:37pm
Thanks to the generosity of Joshua Dorkin, I am lucky enough to be apart of this great team here...
• Looking for Abandoned Houses? Ask for Steve Johnson
by Jim Watkins
1 Dec 2008 at 5:48pm
Real estate investors who have driven around looking for abandoned houses, know that identifying ...
|
