LIECHTENSTEIN Law and Practice Contributed by: Thomas Plattner and Fabian Jenny, Ospelt & Partners Attorneys at Law Ltd.
10. Gifts, Donations, Trusts and Inheritance 10.1 Planning for Generational Transfer of Artworks Due to Liechtenstein’s forced heirship rules ( Pflicht - teilsrecht ), careful planning is essential when transfer - ring an art collection to the next generation. Under the ABGB, spouses and descendants are legally entitled to a fixed proportion of the estate’s value (Section 762 ff of the ABGB). In the past, significant collections that constituted the majority of an estate were often at risk of being sold to satisfy these mandatory claims. How - ever, the revised inheritance law now offers mecha - nisms to avoid such forced sales. These include grant - ing forced heirship legacies ( Pflichtteilsvermächtnisse ) and making use of statutory deferral periods. To further mitigate these risks, collectors frequently enter into inheritance agreements in which heirs waive their mandatory claims in return for alternative ben - efits. 10.2 Legal and Fiscal Issues in Artwork Succession Valuation is a central issue in the succession of art - works. For the purpose of calculating forced heirship claims, the fair market value of the collection must be determined. Professional appraisals are standard for high‑value items. Liechtenstein does not levy inheritance or gift taxes, which simplifies the fiscal aspects of the transfer. This makes the country an attractive location for the long‑term holding of significant private collections. 10.3 Tax Implications of Artwork Gifts and Donations As Liechtenstein does not levy gift or inheritance tax - es, the donation of artwork to a family member or to a foundation does not give rise to any tax liability. The recipient is not subject to income tax upon receiving the gift, as inheritances and donations are not con - sidered taxable income. However, individuals who are tax‑resident in Liechtenstein must declare the value of the artwork in their annual net wealth tax return.
mercial use could still be legally challenged under these alternative provisions.
9. Artworks and New Technologies 9.1 NFTs Liechtenstein is recognised as a global leader in the regulation of digital assets through the Token and Trusted Technology Service Provider Act (TVTG). The Act introduces a “Token Container Model”, in which a token functions as a legal container capable of rep - resenting any type of right, including ownership of an artwork. This framework provides a clear legal basis for the tokenisation of both physical and digital art. Under the TVTG, the transfer of a token on a block - chain results in the legal transfer of the right it repre - sents (Article 7 of the TVTG). Furthermore, the person who has the power of disposal over the token is pre - sumed to be the lawful holder of the underlying right (Article 5 of the TVTG). Service providers that issue tokens or offer related services must register with the FMA, ensuring regulatory oversight and compliance. Together, these provisions create strong legal certain - ty for the development of digital art markets. They also support the implementation of fractional owner - ship models within a structured and well‑defined legal environment. 9.2 Counterfeit NFTs The use of blockchain technology does not, in itself, guarantee the authenticity of the underlying artwork. Counterfeit NFTs can still be created without the copy - right holder’s permission. Victims of such transactions may seek remedies under the ABGB on the grounds of error or fraud. In addition, authors can initiate cop - yright infringement proceedings under the URG to prevent the unauthorised use of their works in digital formats. Furthermore, the TVTG introduces a liability regime for tokenisation service providers who fail to ensure that a token accurately represents the underlying right.
118 CHAMBERS.COM
Powered by FlippingBook