International Tax Agreements
As an export-oriented industrial country, Liechtenstein has a fundamental interest in entering into an agreement with its most important trading partners to avoid double taxation (Doppelbesteuerung or DBA), which includes the tax practice area.
Additionally, Liechtenstein has ratified agreements on tax issues with different states (TIEA). These agreements (DBA and TIEA) require the recognition of Liechtenstein legal entities abroad and serve to strengthen the oft-constrained legal certainty, ever-important in the present day.
Double taxation agreements strengthen the Principality of Liechtenstein as a holding location for active international companies. Due to the unilateral waiver of the tax on dividends from Liechtenstein legal entities, Liechtenstein can offer interesting prospects, especially for investors domiciled in a country with few or no double tax agreements put in place.
The establishment of the double taxation agreement network is a clearly defined political policy in Liechtenstein and the Landtag and Cabinet have gone to great efforts to fund the policy.