Since the beginning of 2011, a completely revised tax act is in force in Liechtenstein. It fulfils the requirements of a modern law compatible with European rules, which does justice to the increasing links within the financial industry, and which strengthens the competitiveness of Liechtenstein – particularly as a financial location as well.

Investment funds domiciled in Liechtenstein are attractive investment options from the tax perspective. Both UCITS and AIF are subject to unlimited tax liability in Liechtenstein pursuant to Art. 44 para. 1 lit. b Tax Act (SteG) and thus generally have to meet the same information obligations as any other corporation subject to taxation. However, income from the managed assets of Liechtenstein funds are exempt from taxation under Art. 48 para. 1 lit. g Tax Act. As a result, Liechtenstein based funds are in effect not taxed. Moreover, distributions by the fund to its investors are not subject to any withholding taxes. This means investors only have to pay the taxes imposed in their home countries / tax domicile.

These rules apply to all legal forms that a fund can have in Liechtenstein:
- Corporate form (investment company, SICAV, SICAF, LP, LLP, etc.)
- Contractual form (FCP, special fund)
- Trust form (collective trusteeship, unit trust)

Liechtenstein Tax Act
Act of September 23rd, 2010 on national and community taxes

Liechtenstein Tax Regulation
Regulation of December 21st, 2010 on national and community taxes