Family Foundation in Liechtenstein

We offer a turnkey family foundation registration service in Liechtenstein.
Family Foundation in Liechtenstein
from6,300 CHF

    The cost includes legal support for the registration of the holding company in Luxembourg, preparation of registration documents, necessary registration fees and duties and is not final. The final cost is determined after collecting and processing all necessary information.

Who needs a family foundation in Liechtenstein?

A family fund (German: Stiftung) is a special-purpose fund formed and based on the unilateral will of the founder and administered by the board in relation to the beneficiaries. The founder determines the purpose of the foundation the purpose and the beneficiaries. In this context, we consider a foundation organized for the personal purposes of the founder and his family.

The family foundation is an ideal tool for the equitable division of family assets, for determining the terms of benefits for each beneficiary, and for providing additional opportunities for determining the terms of inheritance. In addition, the family foundation acts as a guarantee for the safety of assets, since the foundation itself controls the assets transferred to it. This means that the assets in the possession of the foundation cannot be foreclosed on by claims of the beneficiaries. This design provides an additional layer of protection and security for family assets.

Other key benefits of a family foundation in Liechtenstein include:

  • a high degree of confidentiality,
  • political stability,
  • Organizational flexibility.

Why choose Liechtenstein as a jurisdiction for a family foundation?

Liechtenstein is the birthplace of family foundations. The first law on their establishment was adopted in 1926. After modernization in 2008, it is considered one of the best in the world.

  • Confidentiality. Information about the beneficiaries and the rules of operation of the fund are set out in the confidential statute of the fund.
  • If assets are irrevocably transferred to the foundation, they are no longer the property of the founder. If the transfer of assets to the foundation was not made for the purpose of circumventing obligations to creditors, the assets cannot be confiscated in their favor.
  • The distribution of profits and assets of the Foundation is made solely in accordance with the will of the Founder, which is reflected in the documents of the Foundation.
  • Judicial decisions made outside Liechtenstein (with the exception of Austria and Switzerland) are not recognized in Liechtenstein.
  • Low corporate taxes and exemption from capital gains taxes.

Additional Services:

The annual cost of maintaining a family foundation:

  • Fees for the services of nominee directors of the Fund - from 6,000 CHF/year
  • Provision of legal address - from 1,500 CHF/year
  • Representation expenses - 900 CHF
  • Compliance/CRS/FATCA - 600 CHF
  • Liability insurance - CHF 150
  • Mail delivery service - 30 CHF
  • Minimum corporate income tax - CHF 1,800

Administrative services 180-420 CHF/hour

Tax services - 180-270 CHF/hour

Legal assistance - 420-540 CHF/hour.

Questions and answers

  • What tax rates apply to a family foundation in Liechtenstein?
    Family foundations that are not economically active other than holding assets pay a minimum corporate tax of CHF 1,800 per year. In other cases, a rate of 12.5% less a notional interest deduction of 4%, but not less than CHF 1,800 per year, is applied to income earned).
    Completely exempt from taxes:
    • Gains realized from foreign real estate in the form of rent or capital gains after resale;
    • Capital gains on the sale of shares or other corporate rights.
  • Do I need to hire a Liechtenstein citizen to manage my family foundation in Liechtenstein?
    Yes, at least one of the fund managers must be a resident of the European Economic Area (EEA) and licensed to provide trust management services. In order to comply with this requirement, you can use the service of providing a nominee director, whose authority in the management of the fund is determined by the founder.
  • What is considered a business activity of a family foundation in Liechtenstein?
    A family foundation in Liechtenstein may engage in a variety of business activities, such business activities may include:
    1. Investments: The Fund may invest its assets in a variety of financial instruments such as stocks, bonds, real estate and alternative investments to earn income and grow its capital over time.
    2. Asset Management Services: The Fund may offer asset management services to external clients, utilizing its expertise in asset management to generate fees and additional income.
    3. Venture Capital and Private Equity: By participating in venture capital or private equity, a fund can support entrepreneurial endeavors and innovative businesses while earning a significant return on investment.
    4. Socially Responsible Businesses: The Foundation may invest in or create socially responsible businesses that align with its philanthropic mission, such as sustainable energy projects, fair trade enterprises, or community development initiatives.
    5. Partnerships and joint ventures: Collaborating with other businesses or organizations in partnerships and joint ventures can enable a foundation to expand its business activities and reach new markets.
    6. Consulting and advisory services: Using the expertise and connections of its members, the foundation may offer outside clients or organizations consulting services in areas such as finance, governance or philanthropy.
  • Does a foundation have to undergo an annual audit and file reports if it has commercial activities?
    Yes, you do.
  • Can a founder designate himself as a beneficiary?
    Yes, it can
  • What are the requirements for the Board of the Foundation?
    There must be a minimum of two managers, one of whom may be the founder/beneficiary, at least one manager must be a resident of the EEA and licensed to provide trustee services.
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