LI
Taxation Based on Expenditure (Pauschalbesteuerung)
Active
Lump sum
Liechtenstein · special tax regime
Flat rate
25.0%
minimum tax CHF 300,000
Duration
—
Prior non-residency
10 years
required before applying
Standard top income tax
8.0%
Liechtenstein, without the regime
Overview
- Regime
- Taxation Based on Expenditure (Pauschalbesteuerung)
- Country
- Liechtenstein
- Type
- Lump sum
- Status
- Active
- Effective from
- Sep 23, 2010
- Expires on
- —
Details
- Summary
- Discretionary lump-sum tax on worldwide living expenses in lieu of ordinary income and wealth tax for qualifying wealthy foreign residents not working in Liechtenstein.
- Eligibility
- First-time resident or return after at least ten years abroad; not a Liechtenstein citizen; no gainful activity in Liechtenstein; living from foreign asset income or other funds received from abroad.
- Benefits
- Income and wealth tax replaced by tax on declared expenditure at 25%; Liechtenstein real estate remains subject to wealth tax.
- Requirements
- Detailed expenditure disclosure; government approval required; minimum annual tax applies for new applicants.
- Limitations
- Minimum annual tax CHF 300,000 for EU/EEA nationals and CHF 350,000 for other nationals on new applications; older agreements may have lower minima.
- Income types covered
- Worldwide income and wealth (replaced by expenditure basis except Liechtenstein real estate)
- Duration details
- Typically set for multiple years; initial periods of five years are common in practice.
View source SteG Arts. 30–34 (English translation)