LIECHTENSTEIN Law and Practice Contributed by: Thomas Plattner and Fabian Jenny, Ospelt & Partner Attorneys at Law Ltd.
In May 2017, Liechtenstein implemented Action 13 of the BEPS Action Plan by activating the exchange of Country-by-Country Reports (“CbC Reports”) of the CbC Multilateral Competent Authority Agreement (MCAA) with 26 jurisdictions on a bilateral basis (the first exchanges took place in 2018 for the reporting period of 2017). Multinational enterprises (MNEs) with an annual consolidated group revenue of more than CHF900 million have to file CbC Reports. Since 1 January 2017, the Liechtenstein tax authorities have been required to exchange information on tax rulings spontaneously. Most recently, on 7 November 2025, the Liechtenstein parliament passed the Crypto-Asset Reporting Framework Act (“CARF-Gesetz”), togeth - er with amendments to the AIA Act, the FATCA Act, the AStA Act and the CbC Act, thereby implement - ing the OECD’s Crypto-Asset Reporting Framework (CARF) and the revised Common Reporting Standard (“CRS 2023+”). The legislation entered into force on 1 January 2026 and extends the automatic exchange of information regime to crypto-asset service provid - ers with a nexus to Liechtenstein, who must identify crypto-asset users, determine their tax residence and report relevant transactions (purchases, sales and exchanges of crypto-assets) to the Liechtenstein Tax Administration. The first reportable period is 2026, with the first cross-border exchange of data taking place in 2027. This closes the transparency gap that previously existed for digital assets and is directly relevant to foundations, trusts and establishments holding crypto-assets, which face increased due dili - gence and documentation requirements as a result. Liechtenstein has not yet implemented any measures in accordance with Action 12 of the BEPS Action Plan (which requires taxpayers to disclose their aggressive tax planning arrangements); as a non-EU EEA/EFTA state, Liechtenstein is also not directly bound by the EU’s DAC6 mandatory disclosure regime. 2. Succession 2.1 Cultural Considerations in Succession Planning Liechtenstein is a country with a long European history and culture. The main cultural factors are the monar - chy with a high level of stability, the Roman Catholic Church as the state church and the natural heritage.
Liechtenstein still has significant industry and fam - ily businesses spanning more than two generations. Consequently, succession planning in the family, the transfer of real estate (land or buildings) and co-oper - ation of generations regarding transfer of wealth are important. Liechtenstein also has a long tradition in banking and insurance services. In connection with succession planning, Liechtenstein banks, asset managers, investment companies as well as legal advisers are competent in advising ultra- high-net-worth clients, domestic and international, in succession planning. 2.2 International Planning Liechtenstein families are part of the international growth of businesses and families. Several important and wealthy families are providing business and mov - ing their residency globally. Consequently, Liechten - stein tax and inheritance laws must cover such flex - ibility. As an EEA/EFTA state and not an EU member, Liechtenstein is not bound by, and has not adopted, the EU Succession Regulation (Regulation (EU) No 650/2012). Cross-border succession is instead gov - erned by Liechtenstein private international law, in particular the rules on the applicable succession law (Article 29, IPRG). Under succession planning, the Liechtenstein private foundation is still an important legal form for succession planning of families and businesses. 2.3 Forced Heirship Laws Liechtenstein has forced heirship rules. A compul - sory portion of the estate shall be transferred to close relatives. Following the succession law reform that entered into force on 1 August 2024 (LGBl 2024.259), only the descendants and the spouse or registered partner of the deceased are entitled to a compulsory portion (Section 763, ABGB). Ascendants (parents and grandparents) are no longer entitled to a com - pulsory portion, even where the deceased leaves no descendants. Siblings, uncles/aunts, nieces/neph - ews and the partner in a non-marital partnership are not entitled either. The compulsory portion uniformly amounts to half of the share that the entitled person would receive under intestate (legal) succession (Sec - tion 765, paragraph 1, ABGB). The compulsory por - tion of the spouse or registered partner doubles where
370 CHAMBERS.COM
Powered by FlippingBook