Liechtenstein sits 53rd out of 217 in our world ranking, with a FiScore of 7 out of 10. One hundred and sixty square kilometres between Switzerland and Austria, a principality of thirty-nine thousand people, and a tax system that resembles no other in Europe.
Two things make it unusual, and only one of them is a rate.
The rates
| Tax | Rate |
|---|---|
| Personal income | 2.5% to 22.4% |
| Companies | 12.5% |
| VAT | 8.1% |
12.5% on companies is the Irish level in a country of thirty-nine thousand inhabitants. The personal scale is a national 1% to 8% plus a municipal surcharge, which is where the 22.4% top figure comes from.
VAT at 8.1% is Switzerland's, raised on 1 January 2024: Liechtenstein applies Swiss VAT law with its own administration, and forms a customs and monetary union with its neighbour. You pay in Swiss francs.
Wealth taxed as a notional yield
This is what sets Liechtenstein apart, and it is worth understanding before any rate is compared.
Most countries tax your earned income and your investment income separately. Liechtenstein does something else: your wealth is converted into a notional income of 4% of its value, that notional income is added to your ordinary income, and the total is taxed at the scale.
The direct consequence: the actual returns on your capital are not taxed separately. Whether your portfolio yields 1% or 12%, it is the notional 4% that enters the base.
For a well-run estate returning more than 4%, the mechanism is very favourable. For an estate that yields little, it is much less so: you are taxed on income you did not receive.
It is a coherent and transparent system. It simply has to be run through your own numbers rather than filed under "low tax".
The permit is the real obstacle
This is where most plans stop, and it belongs above the rates rather than below them.
Liechtenstein rations residence permits severely, through an annual quota, and part of that quota is allocated by draw. Being wealthy, locally employed or well advised creates no entitlement.
That single fact separates Liechtenstein from every other small European jurisdiction. Monaco, Andorra and Switzerland all set conditions you can work towards and meet. Liechtenstein sets a queue, and part of it is luck.
Nationals of the European Economic Area have their own quota, which is where most successful applications come from, alongside employment-based routes and family reunification.
Foundations, trusts and the EEA
Liechtenstein was built on foundations and trusts, with an old body of law and a financial sector specialised in managing and passing on family wealth.
It is a member of the European Economic Area without being in the European Union, which gives it single market access without tax harmonisation. That position is rare, shared with Norway and Iceland, and it explains a good part of the appeal.
The drawbacks
You probably cannot move there, and an honest list starts with that.
Property is scarce and expensive, and purchase by foreigners is restricted.
The country is tiny. Thirty-nine thousand people, no airport, and a daily life largely shared with neighbouring Switzerland.
The old discretion is gone. Liechtenstein has applied automatic exchange of information since 2017.
So, who is Liechtenstein for?
- Family wealth to structure and pass on: that is the sector's trade, with one of the oldest foundation laws in Europe.
- A holding company wanting single market access: 12.5% inside the EEA is a combination neither Switzerland nor Monaco offers.
- A low-yielding estate: beware the notional 4%, which taxes you on what you did not earn.
- Someone who simply wants to move there: the permit quota makes it genuinely uncertain. Look at Andorra or Switzerland instead.
The full table of Liechtenstein rates is on our Liechtenstein page, and the comparison tool puts it next to anywhere else. Before deciding anything, read how to actually leave.
Sources
The Liechtenstein tax administration and PwC Tax Summaries, verified in August 2026. An error reported to us gets fixed.
This page informs, it does not advise. Before deciding anything, talk to a professional who will look at your situation, as our terms of use set out.