Liechtenstein Stiftung (Foundation)

A Liechtenstein Stiftung is a limited liability foundation recognized as a legal entity under Liechtenstein law. A Stiftung neither has members nor a board of directors, consequently it cannot actively conduct commercial business. Common uses for this entity includes Charity, non-profit fund raising and more.

The founder of the Liechtenstein Stiftung, who can be of any nationality, transfers assets to the Stiftung. The foundation documents state the objective of the entity and appoint the foundation administration (Council of Members). The founder can appoint him/herself as an administrator, who is responsible for the management and distribution of assets, income or capital to the beneficiaries.

The beneficiaries of a Liechtenstein Stiftung are stated in the entity formation documents. A foundation can have an indefinite life or is resolved, when the purpose of the foundation is fulfilled.

A Liechtenstein Stiftung is legally tax exempt.

The necessary paid up share capital required is CHF 30,000 (US$ 31,300) and can be set up within a few days. The assets of the foundations can be increased through the contribution of the founder or third parties.

A statement of assets and liabilities has to be drawn up, but annual financial statements do not need to be submitted to the tax administrator. As such, its reputation as a legitimate legal entity was damaged in 2008 when Germany uncovered hundreds of individuals using the Liechtenstein Stiftung to avoid tax.

The founder’s personal details are not filed in a public register.

It is suitable for implementation as a holding company as well as an instrument for safeguarding a business for inheritance.

Liechtenstein foundations are not subject to any tax including income tax, capital gains, transfer tax, or estate tax in Liechtenstein.

Liechtenstein is a stable economy with banks enjoying AAA-ratings.