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Setting up a fund


Advantages of the fund domicile Liechtenstein for fund initiators, investors, AIFM and Management Companies

Advantages of investing in Liechtenstein funds

EEA-compliant investment fund law
The Liechtenstein fund law has been modelled on the European investment fund law on account of its membership of the EEA. As European law has been incorporated into the EEA Agreement, the same rights and obligations apply in Liechtenstein as in all of the EU Member States. Accordingly, Liechtenstein enjoys full access to the European internal market and provides the highest degree of legal certainty for investors.

High investor protection

Liechtenstein has introduced stringent regulation to protect investors in the funds sector. Both the regulator and independent auditors scrutinise the activities of management companies and fund managers in the Principality on a regular basis.

Highly efficient banking system
The Liechtenstein investment fund market benefits from access to a highly efficient banking system. The banks of the Principality are amongst the best-capitalised in the world and did not require government assistance during financial crisis. A high proportion of the well-trained personnel in the local financial services industry comes from the neighbouring countries of Switzerland and Austria. The long-standing tradition of Liechtenstein’s financial centre and proximity to the Zürich stock exchange facilitate the recruitment of an outstandingly qualified work force.

Solid fiscal policy of public budgets
Liechtenstein has no national debt and is one of only 12 countries worldwide with an AAA rating from both Moody’s and Standard & Poor’s.

High level of political continuity and stability
Liechtenstein is a constitutional monarchy based on democratic parliamentary principles. The acting Head of State is H.S.H. Prince Alois von und zu Liechtenstein. The Principality has enjoyed the highest level of political, social, and economic stability over the past 300 years combined with a forward-looking, pro-business approach.

Customs and currency union with Switzerland
The use of the Swiss Franc in the Principality, which is recognised as one of the safest in the world, has provided considerable security for Liechtenstein and its investors since 1923. A Liechtenstein-domiciled fund however, would be in a position to use any other recognised currency for investment purposes as well.

Tax Conformity
For years, Liechtenstein has pursued a rigorous tax conformity strategy and has already concluded bilateral tax treaties with over 50 states around the world. The Global Forum on Transparency and Exchange of Information for Tax Purposes (OECD) gave Liechtenstein good grades within the context of its 2015 country assessments, judging that it was «largely compliant». This means Liechtenstein has the same rating as e.g. Germany and Great Britain.

Attractive tax system for investment funds
At the beginning of 2011, a totally revised Tax Act entered into force in Liechtenstein. The modern law is internationally compatible and complies with European Laws. Liechtenstein investment funds are subject to favourable tax rules and could be considered as tax-advantaged investment vehicles. They are for example, not subject to any domestic fiscal charges in the form of a capital tax or VAT. Nevertheless, the individual investor may incur a personal tax liability under the laws of the country of domicile.

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.

Setting up a Fund – Why Liechtenstein?

EU compatible funds
Due to the Principality’s membership in the European Economic Area (EEA), EU regulations are fully integrated into Liechtenstein law and investment companies and fund promoters benefit from the access to the European market.

Short authorization period and time-to-market
The maximum authorization period for UCITS is laid down by legislation. It amounts to a maximum of 10 working days. Alternative Investment Funds (AIF) only have to be notified to the Financial Market Authority (FMA). Nevertheless, they are regulated and directly supervised. If the AIF is to be distributed, a distribution notification is required, which the FMA usually confirms within 4 to 5 working days (by law, a maximum of 20 working days).

Setup costs, ongoing administration and supervisory fees are competitive in comparison with other fund domiciles. Since the application of an all-in fee is common practice, fund promoters profit from a high cost planning reliability.

Attractive tax system for investment funds
Revenues from investment funds are tax-exempt in Liechtenstein, and investment funds are not subject of VAT and stamp duty. Except of one special legal form, funds are free of governmental charges for emissions or incorporations.

Umbrella funds
Funds can be set up as so called umbrella funds comprising one or several compartments which also can be added subsequently. On this basis funds can be launched at a significantly lower cost.

Broad spectrum of investment vehicles
On the framework of European requirements the Liechtenstein fund centre enables a multitude of possibilities in setting up investment vehicles and enables a significant degree of flexibility in regard to investment strategies.

Efficient legislation
The fast and efficient integration of EU regulation with respect to the finance sector has led to a high degree of legal certainty with optimal conditions for financial intermediaries.

High investor protection
Liechtenstein has introduced stringent rules of conduct to protect investors in the funds sector. Both the regulator and independent auditors scrutinise the activities of management companies and fund managers in the Principality.

Highly efficient banking system
The investment fund market benefits from access to a highly efficient banking system. The banks of the Principality are amongst the best-capitalised in the world and did not need any government assistance during the financial crisis.

Transparent finance centre
Due to the implementation of extensive tax agreements and due to the participation in the automatic exchange of information as an early adopter, Liechtenstein has been recognised as a leading jurisdiction for investment funds.

High level of political continuity and stability
The Principality has enjoyed the highest level of political, social, and economic stability over the past 300 years combined with a forward-looking, pro-business approach.

Solid fiscal policy and liberal economic policy
Liechtenstein has no government debt and is one of only 11 countries worldwide with an AAA rating from Standard & Poor’s. The liberal attitude of Liechtenstein’s Government and its population is the reason for limited state intervention in the economy.

Customs and currency union with Switzerland
On account of its membership of the EEA and the customs and currency union with Switzerland, Liechtenstein is in a unique position to act as an economic crossroads between the two regions.

Long-standing tradition in the area of private label funds
Liechtenstein has a long-standing tradition in asset management and in the banking industry and a proven experience in the area of portfolio structuring.

If you are interested in setting up a fund under Liechtenstein law, we recommend to contact one of the providers directly.

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

Favourable Operating Conditions for Finance Companies

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 7,7% 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.

Management Companies offering Fund Set-Up for White Label Funds

Link to PDF

Management Company
Contact Person
1741 Fund Management AG
Bangarten 10
FL-9490 Vaduz
+423 237 46 60
Markus Wagner 
Accuro Fund Solutions AG
Hintergass 19
FL-9490 Vaduz
+423 233 47 07
Marc Luchsinger 
Ahead Wealth Solutions AG
Austrasse 15
FL-9490 Vaduz
+423 239 85 18
Alex Boss 
Schaaner Strasse 27
FL-9487 Bendern
+423 399 40 00
Yevgeni Pavlovski 
CAIAC Fund Management AG
Industriestrasse 2
FL-9487 Bendern
+423 375 83 33
Thomas Jahn 
Embla Fund Management AG
Kirchstrasse 3
FL-9490 Vaduz
+423 220 23 84
Markus Schnider 
IFM Independent Fund Management AG
Landstrasse 30
FL-9494 Schaan
+423 235 04 50
Michael Oehry 
LGT Fund Management Company Ltd.
Herrengasse 12
FL-9490 Vaduz
+423 235 22 53
Thomas Marte 
LLB Fund Services AG
Aeulestrasse 80
FL-9490 Vaduz
+423 236 94 05
Michel Simmen 
ONE Funds AG
Austrasse 14
FL-9495 Triesen
+423 388 10 00
Franz Glatzl 
PRIME Fund Solutions AG
Landstrasse 11
FL-9495 Triesen
+423 222 02 40
Stefan Huber 
VP Fund Solutions (Liechtenstein) AG
Aeulestrasse 6
FL-9490 Vaduz
+423 235 67 67
Wolfdieter Schnee 

Portrait Nico Rischmann

The Financial Market Authority in Liechtenstein successfully offers added value within the context of investment fund regulation. Fast processes are just one example.

Portrait Daniel Riediker

With a service quality that is at least at the standard of other well-known investment fund centres, Liechtenstein offers significantly lower costs for the launch of funds and short processing times of one to two weeks for the authorisation of funds.

Portrait Dr. Harald Staudinger

Individual solutions and flexibility on the part of the fund administrator, as well as of the custodian, are necessary for the implementation and realisation of our investment fund projects and investment strategies. Our Liechtenstein partners offer precisely this individual service.

Portrait Siro Zanovello

Liechtenstein offers such great opportunities and services that I am convinced that the fund center will grow enormously in the coming years.

Portrait Peter Zeier

Working together as equal partners – that is for us the central aspect of the long-term partnership with our Liechtenstein management company

Portrait Dr. Rainer Grünig

In my opinion, an important factor are the costs, which are significantly lower in Liechtenstein compared to other typical cross-border locations.

Portrait Markus Bachmann

When expanding Craton Capital in Europe, we compared the established fund domiciles and came down unequivocally in favour of Liechtenstein. Professional, uncomplicated, personal, pragmatic and above board are the attributes that we associate with Liechtenstein as a place to do business.

Portrait Charles Isaac

Very good service, short decision-making channels and transparent costs together with European access for the funds have proven their worth for B&I Capital and continue to represent an important pillar of our business model.

Portrait Markus Töllke

A fund under Liechtenstein law offers everything we need. In terms of stamp duty, it is treated the same as a Swiss fund, which is very important for our main distribution market, Switzerland. In addition, it can be distributed in Europe via EU passporting. We want to keep this option open, even if a fund is currently only offered in our home market.

Portrait Florian Jauch

Ausschlaggebend für das Fondsdomizil Liechtenstein waren die transparente Kostenstruktur in Form von All-in-Fees und das Angebot einer One-Stop-Shop-Lösung der Fondsgesellschaft - das heisst, man hat eine Anlaufstelle als Koordinationsfunktion für alle Anliegen bezüglich Fund ManCo, Verwahrstelle, Wirtschaftsprüfer, Aufsicht, etc. Das spart enorm Zeit und Ressourcen.

Portrait Ralph Früh

From my point of view, the most important change in Liechtenstein was that of becoming a tax-compliant financial centre on an equal footing with other European countries. Among other things, this was the decisive factor for the foundation of Früh & Partner Vermögensverwaltung in Liechtenstein.

Portrait Dr. Rainer Grünig

We have noted that in recent years there has been an enormous professionalization of Liechtenstein as a fund location, both in terms of providers and supervision.

Portrait Dr. Harald Staudinger

Our target investors are drawn from the EU region as well as from Switzerland. Liechtenstein meets the requirements of both investor segments. For us, this is the ideal solution.

Portrait Daniel Gonzenbach

For over 16 years the Liechtenstein investment fund centre has enjoyed our complete confidence. We have profited from the immense experience of our management company and have always been able to implement the latest regulatory requirements for our fund without difficulty.

Portrait Nico Rischmann

The Liechtenstein investment fund centre has a clear positioning – flexible, cost-effective and dynamic.

Portrait Markus Töllke

In Liechtenstein, the processes for setting up a fund are clearly regulated and can be planned.

Portrait Hannes Fahrnberger

No national debt, a secure currency, political stability and a high level of legal certainty are outstanding arguments in favour of the Liechtenstein financial centre for both providers and clients.

Portrait Alessandro Ciocca

We have for many years valued the excellent services and effectiveness of the regulatory system at the Liechtenstein financial centre.

Portrait Hakan Semiz

What we value about the Liechtenstein investment fund centre are the short decision-making channels and the prompt implementation of the Financial Market Authority as well as of our management companies.

Portrait Siro Zanovello

Liechtenstein is a very solid location, it is politically stable and has a AAA rating. Liechtenstein is clearly our absolute favorite in terms of funds, where we are also planning our future projects.