LIECHTENSTEIN Law and Practice Contributed by: Thomas Plattner and Fabian Jenny, Ospelt & Partner Attorneys at Law Ltd.
that person has contributed substantially to building up the deceased’s assets and the increase in assets generated during the marriage or registered partner - ship constitutes the major part of the estate (Section 765, paragraph 2, ABGB). In order to calculate the compulsory portion, the evaluation of the estate is necessary. Gifts from the deceased or other dispositions must be taken into account. This includes gifts to children upon marriage/ cohabitation, gifts upon commencement of a profes - sion, payment of debts of an adult child, advances from the compulsory portion or, with regard to spous - es, the statutory advance legacy. The right to a com - pulsory portion generally arises upon the death of the testator. The last Will, marriage contract or inheritance con - tract can be used to arrange the inheritance as the deceased wishes, taking into account the compulsory portions. 2.4 Marital Property Marriage does not establish conjugal community of property (Section 1233, ABGB). As the stipulations with regard to separation of property are ius disposi - tivum, the spouses are free to organise their common fortune ad libitum. They can establish a comprehen - sive community of past and future property, as well as a community comprising certain goods in com - mon use; they can even extend this agreement to a property regime of the community of accrued gains. 2.5 Transfer of Property Transfer of property is permissible under Liechten - stein civil laws. Transfer of real estate is subject to real estate gains tax (for more information, see 1.5 Taxation of Real Estate Owned by Non-Residents and Non-Citizens ). Advance transfer of inheritance is subject to recalcula - tion of legal portion or compulsory portion upon death of the transferor. At the request of a person entitled to a compulsory portion, gifts made by the deceased are added to and set off against the compulsory por - tion in accordance with Section 781 et seq, ABGB. The gifted asset is valued as at the time the gift was actually made, and that value is then adjusted to the
date of death in line with the national consumer price index (Section 785, ABGB). 2.6 Transfer of Assets: Vehicle and Planning Mechanisms Liechtenstein levies neither gift nor inheritance tax. Assets can be transferred to the younger generation tax-free. 2.7 Transfer of Assets: Digital Assets Digital assets are considered to be assets under the Liechtenstein Blockchain Act (TVTG). Such assets are treated like moveable assets. Digital securities are treated like securities. 3. Trusts, Foundations and Similar Entities 3.1 Types of Trusts, Foundations or Similar Entities Trust/Trust Company On 1 April 2006, the Hague Trusts Convention entered into force in Liechtenstein. Trusts are recognised in Liechtenstein. A trust is not a legal entity and has no legal personality, but it rather is a contractual legal relationship. Contrary to the (simple) trust, Liechten - stein also recognises Trust Enterprises with legal per - sonality. A trust consists of the trust fund transferred by the settlor to a trustee. The trustee is obliged to admin - ister or use the trust fund in their own name as an independent legal owner for the benefit of one or sev - eral beneficiaries. Trusts can be set up for charitable, social, cultural or similar purposes and as a trust set - tlement or a family trust for the benefit of one or more families. Trusts (without legal personality) established under Liechtenstein law or having their effective place of management in Liechtenstein are liable to the mini - mum corporate income tax of CHF1,800 per year. Trust Enterprises (with legal personality) are subject to regular corporate income taxation at a rate of 12.5% and are therefore subject to tax assessment. The endowment/transfer of assets located abroad to a Liechtenstein trust by a natural person (settlor) is not
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