Setting up a fund

A Secure and Established Fund Centre in Europe
Liechtenstein combines the highest regulatory standards with political and economic stability. As a member of the European Economic Area (EEA), the Principality is fully integrated into the European single market and provides investors with a reliable environment for long-term investments.

European Regulation – International Recognition
Liechtenstein adopts the relevant EU directives in the field of investment funds and has established a modern, EEA-compliant fund framework. Liechtenstein investment funds therefore meet the same regulatory requirements as funds domiciled in EU Member States and can be distributed across Europe.

Your benefits:

• European regulatory standards
• High level of legal certainty
• Internationally recognised fund domicile

Investor Protection as a Priority
Investor protection is at the heart of Liechtenstein’s fund legislation. Investment funds and management companies are supervised by the Liechtenstein Financial Market Authority (FMA). In addition, independent auditors provide regular reviews, ensuring transparency and professional fund governance.

Your benefits:

• Strict regulatory requirements
• Ongoing supervision and control
• Transparent fund management

A Strong Financial Centre
Liechtenstein has an internationally recognised financial centre with highly capitalised banks and specialised fund service providers. Decades of experience in private banking and asset management provide the foundation for a high level of expertise and quality.

Your benefits:

• First-class financial service providers
• Strong industry expertise
• International orientation

Stability Creates Confidence
Liechtenstein is among the most politically and economically stable countries in Europe. Sound public finances, a reliable legal system, and a long-term-oriented economic policy create an environment that provides investors with security and confidence. The country’s highest AAA credit rating further underlines this exceptional stability.

Your benefits:

• Political continuity
• Sound public finances
• Highest creditworthiness

International Transparency
Liechtenstein has been committed for many years to the highest international standards in tax transparency and financial market regulation. The Principality implements OECD standards and the Automatic Exchange of Information (AEOI) consistently.

Your benefits:

• Internationally recognised financial centre
• High compliance standards
• Reliable regulatory framework

Attractive Tax Environment for Investment Funds
Liechtenstein offers a modern and competitive tax regime for investment funds. Income generated at fund level is generally exempt from taxation. In addition, no capital tax applies and the issuance of fund units is not subject to transfer stamp duty. The taxation of investors depends on the applicable tax regulations in their respective country of residence.

Your benefits:

• Tax-efficient fund structures
• Internationally competitive tax environment
• Clear and reliable framework conditions

Your Advantages at a Glance

• EEA-compliant fund legislation based on European standards
• High level of investor protection and strong supervision
• Internationally recognised financial centre
• Political and economic stability
• AAA sovereign credit rating
• Swiss franc as official currency
• Strategic bridge between Switzerland and the European market
• Attractive tax environment for investment funds

Liechtenstein – a fund domicile combining security, quality, and international market access.


This marketing communication is intended exclusively for information purposes and does not represent any offer, bid or invitation to purchase or sell securities, nor the advertising hereto. In any case you will need counselling of a specialist and most probably a tax ruling for clarifying individual cases.

Liechtenstein combines a robust European regulatory framework with entrepreneurial flexibility. As a member of the European Economic Area (EEA), it provides direct access to the European market, efficient regulatory processes, and an attractive business environment—creating ideal conditions for the successful launch and management of investment funds.

Fast Time-to-Market
Benefit from one of Europe's fastest fund approval processes. UCITS funds are approved within a maximum of 10 business days, Alternative Investment Funds within a maximum of 20 business days.

Access to the European Market
As an EEA member state, Liechtenstein applies the relevant EU regulatory framework. Funds domiciled in Liechtenstein can therefore benefit from the established European passporting regime, enabling cross-border distribution throughout much of Europe.

Predictable Cost Structure
Competitive setup and operating costs, combined with with commonly offered transparent all-in fee models, provide cost certainty from fund launch through ongoing administration and management.

Tax-Efficient Fund Domicile
Investment funds benefit from an attractive tax framework. Fund income is exempt from taxation, while VAT and stamp duty generally do not apply, creating an efficient and competitive fund structure.

Scalable Growth
Umbrella fund structures with multiple sub-funds enable cost-efficient expansion of your product range while significantly reducing administrative effort when launching additional investment strategies.

Broad Investment Flexibility
Within the European regulatory framework, Liechtenstein offers access to a wide range of eligible asset classes and provides considerable flexibility in designing investment strategies and fund structures.

Confidence Through High Regulatory Standards
Liechtenstein fully implements European financial market regulation. Supervision by the Financial Market Authority (FMA), together with independent external auditors, ensures a high level of transparency, regulatory compliance, and investor protection.

A Strong Financial Centre
Liechtenstein is an internationally recognised financial centre with highly capitalised banks, experienced service providers, and efficient decision-making processes, offering an ideal environment for fund business.

Stability Creates Confidence
Political continuity, legal certainty, sound public finances, and a AAA sovereign credit rating provide a stable and reliable foundation for long-term investment and business activities.

A Strategic Bridge Between the EU and Switzerland
Liechtenstein’s customs and monetary union with Switzerland provides additional benefits for investors. For Swiss stamp duty purposes, Liechtenstein investment funds are generally treated in the same way as Swiss funds. This creates a distinct advantage for investors in Switzerland compared with funds domiciled in other EU/EEA countries.

Your Key Advantages at a Glance

• Direct access to the European market
• Fast approval process and short time-to-market
• Competitive and predictable cost structure
• Tax-efficient fund domicile
• Flexible umbrella fund structures
• High regulatory standards and strong investor protection
• Political and economic stability
• Strategic gateway between the European Union and Switzerland

Liechtenstein combines efficiency, stability, and seamless access to the European market—providing the ideal foundation for successful White Label Funds.

This marketing communication is intended exclusively for information purposes and and cannot replace individual and detailed consulting.

In addition to the advantages mentioned in “Setting up a Fund – Why Liechtenstein?” there are further benefits for the establishment of a management company or an alternative investment fund manager (AIFM).

Attractive tax regulations
12.5% is the unified income tax for companies in Liechtenstein. The payment of this flat tax settles everything, as Liechtenstein knows neither tax on capital nor coupon tax. Also, distribution premiums or taxes on dividends, capital or liquidation profits on shares are not in place. The customs union with Switzerland also has certain tax effects. The joint value-added tax rate amounts to 8.1% and is thus by far the lowest rate in the European Economic Area (EEA). Liechtenstein based funds are in effect not taxed. Neither the fund is subject to any subscription taxes nor are distributions by the fund to its investors subject to any withholding taxes.

Excellent business environment
The liberal economic policy of the country is reflected in the labour law and in company law as well. Ancillary labour costs amount to 17% in the Principality, being one of the lowest values across Europe, although the working week is quite long in comparison. This contributes significantly to the attractiveness of this location as a company seat. The small size of the country brings with itself advantages in all instances: flexibility, limited bureaucracy and short decision routes. This holds true in particular for the work of the Financial Market Authority.

Outstanding productivity
Liechtenstein has a very high commuter rate. In order to adjust the statistics with respect to these commuters, not the per capita GDP is indicated but the GDP per professionally active person. It amounted to 193'820 CHF in the year 2017. With that, Liechtenstein is found among the top countries of the world.

Good network
Liechtenstein is a member of the EEA and thus profits from the internal EU/EEA market. Further organisations, to which the Principality belongs, are the UN, the EFTA and the WTO.

A high quality of life
Liechtenstein is situated in the heart of Europe: Surrounded by the mountains of the Alps and nestled in a region with a wide range of cultural and leisure opportunities. In the summer, keen mountain hikers find over 400 km of well-maintained and signposted hiking routes for every level of aptitude. In the winter, the family skiing region of Malbun attracts skiers and snowboarders onto the pistes. International centres such as e.g. Zurich, Milan and Munich, along with holiday resorts such as St. Moritz, Lech/Arlberg, the Lake Constance region with the Bregenz Festival, Tirol and South Tirol, Lago Maggiore, Lake Como, Lake Lugano and countless others can be reached from Liechtenstein quickly and with ease. Besides, Liechtenstein is one of the safest countries in Europe.
The infrastructure is well-developed, and there are excellent cross-border transport connections. The basic training and further education offer within the borders of Liechtenstein is very good, primarily thanks to the University of Liechtenstein, and is complemented by the comprehensive offering of the neighbouring countries.

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