A micro-state located between Switzerland and Austria, the fourth smallest country in the world, Liechtenstein is not only known to be an alpine tourist destination, but also for being a tax haven enjoyed by holding company and financial services.
Liechtenstein is a tax haven in the heart of Europe.
Indeed, no less than 80,000 holdings are present in Liechtenstein for about 35,000 inhabitants in an area of 160 km². However, the financial flow accounts for nearly 31% of national GDP.
So this small alpine state offers a profitable environment for financial players and allows them to accumulate a fairly substantial margin. Resident local financial companies receive tax-deductible.
Although no longer officially considered by the OECD, the Organisation for Economic Co-operation and Development, as a tax haven since November 10th 2009, the rules has not changed much for this country. On the contrary, more and more subsidiaries of large companies pass there.
The financial arrangement within a country like Liechtenstein is relatively advantageous for any company that wants a tax optimization as shown in the financial management mode IKEA Group which its holdings are mainly installed in Liechtenstein and Luxembourg.
The role of a trust company in this system:
Liechtenstein is a favorite choice for any investor, because it is a healthy tax haven. Indeed, the Principality now declines any connection with money laundering, saying she now plays the card of transparency to suit best the OECD principles.
Trusts investment funds are the most common to quickly generate revenue, but there are still several ways of funding administered by a trust company as real estate investment trusts or shares in a subsidiary.
For your investment in Liechtenstein, it is important to go through a trust knowing that this practice allows any individual investor to have a bank account and generate income without having to reside in the country. Trusts operate in a legal framework with the general approach of financial institutions in the Principality of Liechtenstein.