"Opportunities under the new DTA with Liechtenstein"

The new double taxation agreement (DTA) between Switzerland and Liechtenstein, which came into force on January 1, 2017, offers significant opportunities for both countries. The close economic ties between the two countries, including a common customs and currency union as well as a common VAT territory, will be further strengthened by the new DTA.

Liechtenstein investments in Switzerland will become more attractive as the withholding tax on investment income and capital gains can be reduced. This will lead to increased cross-border economic activities and investments by industrial, financial and pension companies as well as private individuals from Liechtenstein in Switzerland. The DTA also creates synergies, for example through the use of the equity interest deduction offered by Liechtenstein.

The agreement also promotes legal certainty and a culture of trust between the two countries, particularly in the management of large group assets. Liechtenstein remains an attractive location for Swiss companies with access to the EU and the EEA. Finally, the DTA contains provisions on the use of Liechtenstein foundations, which facilitates succession planning in the private and corporate sectors.

Topics in the publication

• Double taxation agreement (DTA) between Switzerland and Liechtenstein
• Economic interdependence
• Investments
• Cross-border economic activities
• Tax synergies
• Legal certainty and a culture of trust
• Market access
• Foundation and trust law
• Cross-border commuter taxation