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The Principality of Liechtenstein can trace its origins back to 1719 when the regions autonomy was conceded by Emperor Charles VI. Historically closely connected to Austria although this century it has established substantial links with Switzerland including the adoption of the Swiss currency.
Since the Second World War the jurisdiction has become a major financial service provider in central Europe with numerous trust companies located in its capital Vaduz. Numerous legal undertakings have been established to allow tax planning flexibility the most well know being private interest foundations (stiftungs) and private law establishments (anstalts) both of which offering unique advantages. The main benefit of private interest foundations and establishments is that they are self owning entities like trusts but can be controlled, if required, by the founder during his or her lifetime.
Banking & Confidentiality: For those seeking confidentiality over their business and financial affairs Liechtenstein probably offers the best 'haven' in Europe. It is not a member, or associated member, of the European Union and only has one double taxation treaty with Austria. Under their most recent banking legislation, passed on the 21st of October 1992, both present and former bank staff together with government officials cannot disclose any banking information to third parties.
If one of the numerous local legal entities, including anstalts, aktiengesellschafts and foundations, are needed it is highly recommended that local lawyers are employed since any non-authorized disclosures would result in penal consequences. For the same reasons, their employment is also recommended even when personal or foreign company accounts are being opened.
Obviously, Liechtenstein like all other respectable jurisdictions do not wish, notwithstanding the aforementioned, to be seen as a center for illicit/criminal activities and, provided sufficient evidence is adduced, will release information. Further, any cash deposits over 500,000.00 Swiss Francs will be subject to strict source verification. Nevertheless, it should be noted that the Liechtenstein authorities will not assist third party inquiries relating to foreign tax obligations.
If a foreign company is opening an account full banking confidentiality will still apply, however, it is then necessary to consider that jurisdictions disclosure rules. |
