LIECHTENSTEIN Law and Practice Contributed by: Thomas Plattner and Fabian Jenny, Ospelt & Partners Attorneys at Law Ltd.
Under the law of mandates, any commissions or benefits that the adviser receives from third parties must be surrendered to the principal unless a differ - ent arrangement has been expressly agreed (Section 1012 of the ABGB). This rule is designed to prevent undisclosed “kickbacks” and to ensure that the advis - er’s incentives remain aligned with the client’s. If the adviser breaches these fiduciary obligations, they can be held liable for any resulting damage suffered by the principal, such as the payment of an inflated purchase price for an artwork. 6.6 Anti-Money Laundering Regulations and the Art Market The Due Diligence Act (SPG) applies to individuals or entities that deal in artworks or act as intermediaries in art transactions with a value of CHF10,000 or more (Article 3, Abs. 1, Bst. u, SPG). These participants are required to register with the Financial Market Author - ity. As part of their obligations, they must identify both the contracting party and the beneficial owner of the funds used for the purchase. In situations that present a higher risk – such as trans - actions involving politically exposed persons (PEPs) – enhanced due diligence measures must be imple - mented. Participants are required to document the transaction and verify the source of funds. Any sus - picious activity must be reported immediately to the Financial Intelligence Unit. These regulations form part of Liechtenstein’s broader commitment to maintaining a transparent financial centre and safeguarding the integrity of the art market.
ways. First, a foundation may function as an active corporate entity ( Unternehmensträger ), directly man - aging and operating the collection. Alternatively, the foundation may simply hold the collection as a capital asset for the benefit of designated beneficiaries. Owners also have the option to register their entire collection as a cultural good under the Cultural Prop - erty Act. Registration grants access to state support and expert guidance on preservation but comes with restrictions on dispersing the collection or removing it from the country. When a collection is placed under formal protection, the state may contribute to expens - es such as restoration and security. This partnership between private owners and the state helps ensure that significant collections are maintained to profes - sional standards. 8. Photography 8.1 When Are Photographs Protected as Art? Photographs are protected under the Copyright Act when they possess an individual character (Article 2, Abs. 1, URG). Such individuality is typically estab - lished through the photographer’s creative choices, including composition, lighting, and technical set - tings. A portrait or landscape photograph qualifies for protection if it reflects the creative personality of the author. When a photograph meets this threshold, the photographer is granted the same economic and moral rights afforded to other artists. 8.2 Legal Protection for Different Types of Photographs Liechtenstein law does not provide a specific neigh - bouring right ( Leistungsschutzrecht ) for photographs that lack individual character, such as simple snap - shots or automatically generated documentation. As a result, if a photograph does not meet the required threshold of “individuality”, it generally does not receive copyright protection. However, such images may still be protected under other legal frameworks, including personality rights (Section 16 of the ABGB) or unfair competition law. This means that even if a simple product photograph is not protected by copyright, its unauthorised com -
7. Collections 7.1 Legal Status of Collections
Art collections in Liechtenstein may be owned by indi - viduals or by legal entities, most commonly founda - tions ( Stiftungen ). Foundations are a popular struc - ture for the long‑term preservation of art because they allow assets to be held together as a single unit while remaining legally separate from the founder’s personal estate. The Persons and Companies Act (PGR) pro - vides a flexible and robust framework for these struc - tures, allowing foundations to operate in two main
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