{"id":330,"date":"2023-05-02T11:02:12","date_gmt":"2023-05-02T11:02:12","guid":{"rendered":"https:\/\/companyformationliechtenstein.com\/?p=330"},"modified":"2023-05-02T11:02:15","modified_gmt":"2023-05-02T11:02:15","slug":"liechtenstein-switzerland-double-tax-treaty","status":"publish","type":"post","link":"https:\/\/companyformationliechtenstein.com\/liechtenstein-switzerland-double-tax-treaty\/","title":{"rendered":"Liechtenstein-Switzerland Double Tax Treaty"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.companyformationliechtenstein.com\/uploads\/default\/files\/Liechtenstein-Switzerland-double-tax-treaty.jpg\" alt=\"Liechtenstein-Switzerland-double-tax-treaty\"\/><\/figure>\n\n\n\n<p><strong>Switzerland and Liechtenstein<\/strong>&nbsp;have strong economic ties, as the Principality has adopted the Swiss franc as a national currency, but also because Liechtenstein shares a large portion of its borders with Switzerland. In order to regulate the&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/tax-minimization-in-liechtenstein\">taxation<\/a>&nbsp;of income of individuals commuting from one state to the other for employment,&nbsp;<strong>Liechtenstein and Switzerland signed a double taxation treaty<\/strong>&nbsp;in 1995. A new agreement was signed in 2015 with the aim of broadening its scope. The current agreement for the&nbsp;<strong>avoidance of double taxation between Liechtenstein and Switzerland<\/strong>&nbsp;covers the following taxes:<\/p>\n\n\n\n<ul>\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the income, the real estate income, the property and the coupon taxes in Liechtenstein;<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the income taxes levied at federal, cantonal and municipal level and the taxes imposed to assets held by individuals or companies in Switzerland.<\/li>\n<\/ul>\n\n\n\n<p>Our<strong>&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/about-us\">company registration agents in Liechtenstein<\/a>&nbsp;<\/strong>can help foreign citizens who want to open companies here.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyformationliechtenstein.com\/liechtenstein-switzerland-double-tax-treaty\/#what-does-the-new-liechtenstein-%e2%80%93-switzerland-double-tax-treaty-provide-for\" title=\"What does the new Liechtenstein \u2013 Switzerland double tax treaty provide for?\">What does the new Liechtenstein \u2013 Switzerland double tax treaty provide for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyformationliechtenstein.com\/liechtenstein-switzerland-double-tax-treaty\/#new-tax-rates-in-the-liechtenstein-%e2%80%93-switzerland-double-tax-agreement\" title=\"New tax rates in the Liechtenstein \u2013 Switzerland double tax agreement\">New tax rates in the Liechtenstein \u2013 Switzerland double tax agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/companyformationliechtenstein.com\/liechtenstein-switzerland-double-tax-treaty\/#the-2017-liechtenstein-%e2%80%93-switzerland-double-tax-treaty\" title=\"The 2017 Liechtenstein \u2013 Switzerland double tax treaty\">The 2017 Liechtenstein \u2013 Switzerland double tax treaty<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-does-the-new-liechtenstein-%e2%80%93-switzerland-double-tax-treaty-provide-for\"><\/span><strong>What does the new Liechtenstein \u2013 Switzerland double tax treaty provide for?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The&nbsp;<strong>double taxation treaty signed by Liechtenstein and Switzerland<\/strong>&nbsp;applies to individuals with a place of residence in one of the two states, but also to companies which have a place of management in the other country.&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/establish-a-branch-in-liechtenstein\">Branch offices<\/a>, factories and other types of offices or associated enterprises are considered permanent establishments and will be taxed in the country where they are operating provided that they have been set up there for a minimum period of 12 months.<\/p>\n\n\n\n<p>The&nbsp;<strong>avoidance of double taxation<\/strong>&nbsp;will occur by grating a credit or a tax exemption in the case of&nbsp;<strong>Switzerland<\/strong>, while&nbsp;<strong><a href=\"https:\/\/www.companyformationliechtenstein.com\/why-is-liechtenstein-an-attractive-country-for-investors\">Liechtenstein<\/a><\/strong>&nbsp;will offer tax deductions or partial exemptions on the taxes levied twice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"new-tax-rates-in-the-liechtenstein-%e2%80%93-switzerland-double-tax-agreement\"><\/span><strong>New tax rates in the Liechtenstein \u2013 Switzerland double tax agreement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The most significant changes brought to<strong>&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/double-tax-treaties-in-liechtenstein\">Liechtenstein\u2019s double taxation agreement<\/a>&nbsp;with Switzerland<\/strong>&nbsp;refers to the reduced tax rates applied to dividends, interests and royalties. The new tax rate for dividend payments was reduced from 35% to 15%, while interest and royalties payments will be subject to a 0% tax rate.<\/p>\n\n\n\n<p>It should also be noted that the&nbsp;<strong>double taxation treaty between Liechtenstein and Switzerland<\/strong>&nbsp;was enforced at the beginning of 2016.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-2017-liechtenstein-%e2%80%93-switzerland-double-tax-treaty\"><\/span><strong>The 2017 Liechtenstein \u2013 Switzerland double tax treaty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Liechtenstein and Switzerland<\/strong>&nbsp;are continuously trying to improve their relations, which is why the&nbsp;<strong>double taxation treaty<\/strong>&nbsp;which was amended in 2016 suffered new alterations in 2017. Among the new clauses introduced in the agreement, the most important one is related to making a clear distinction between the&nbsp;<strong><a href=\"https:\/\/www.companyformationliechtenstein.com\/taxation-in-liechtenstein\">income tax<\/a><\/strong>&nbsp;and the wealth tax. This is because Liechtenstein and Switzerland have common customs and VAT systems. The amended agreement follows the OCED model.<\/p>\n\n\n\n<p>The new tax treaty also contains a special clause related to foundations, as the notion is different in the signatory countries. While the&nbsp;<strong>Liechtenstein<\/strong>&nbsp;law is more relaxed about the taxation of sale of assets in a&nbsp;<strong><a href=\"https:\/\/www.companyformationliechtenstein.com\/create-a-foundation-stiftung-in-liechtenstein\">foundation<\/a><\/strong>&nbsp;and the taxation of the beneficiaries of such entity, the Swiss law considers foundations as legal entities, therefore these are taxes as such. Under the new double&nbsp;<strong>tax convention between Liechtenstein and Switzerland<\/strong>, the taxation of foundations will be assessed on a case-by-case basis.<\/p>\n\n\n\n<p>The&nbsp;<strong>2017 Liechtenstein \u2013 Switzerland double tax agreement<\/strong>&nbsp;also contains a clause related to the exchange of tax information.<\/p>\n\n\n\n<p>You can obtain more information on the agreement by&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/contact\">contacting our company formation consultants in Liechtenstein<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Switzerland and Liechtenstein&nbsp;have strong economic ties, as the Principality has adopted the Swiss franc as a national currency, but also because Liechtenstein shares a large portion of its borders with Switzerland. In order to regulate the&nbsp;taxation&nbsp;of income of individuals commuting from one state to the other for employment,&nbsp;Liechtenstein and Switzerland signed a double taxation treaty&nbsp;in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":207,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[80,78,77,79,12],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Liechtenstein Switzerland Double Tax Treaty<\/title>\n<meta name=\"description\" content=\"Find here information on the Liechtenstein Switzerland double tax agreement. 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