Liechtenstein

{"ftc_utility":"high","fbar_trigger_notes":"US citizens residing in Liechtenstein must report any Liechtenstein bank accounts to FinCEN if aggregate balances exceed $10,000 at any point during the calendar year. Liechtenstein has implemented FATCA and participates in automatic exchange of information under the Common Reporting Standard (CRS). Liechtenstein banks are required to report US person account information to local authorities for transmission to the IRS.","ftc_utility_reason":"Liechtenstein taxes worldwide income of residents, and although effective rates are relatively low (up to 8% on income plus a net wealth tax), taxes paid to Liechtenstein can be credited against US tax liability on the same income. Given the absence of a tax treaty, the Foreign Tax Credit is the primary mechanism for avoiding double taxation. The FTC is most useful for higher-income earners who exceed the FEIE limit.","presence_day_count_notes":"Liechtenstein is a very small country with no visa requirement for US citizens for stays up to 90 days within the Schengen area (Liechtenstein participates in the Schengen zone). To establish long-term residence, a permit is required. Liechtenstein has strict immigration rules and limits on new residents, particularly for non-EEA nationals. Obtaining a residence permit as a US citizen can be difficult and is often tied to employment with a Liechtenstein employer or specific wealth thresholds. Once a permit is obtained and residence is established, the 330-day physical presence test is achievable.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":42000,"local_tax_rate_on_earned_income":0.08,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Liechtenstein residents is included in taxable income and subject to progressive income tax at rates up to 8%. Liechtenstein residents also participate in the AHV/IV social insurance system (shared with Switzerland under a customs treaty arrangement), and domestic pension income from AHV is taxed similarly.","tax_rate":0.08,"locally_taxed":true},"social_security":{"notes":"No US-Liechtenstein tax treaty exists. US Social Security benefits received by Liechtenstein residents are not protected by treaty and may be subject to Liechtenstein income tax. In practice, treatment depends on how the Liechtenstein authority classifies the payments. A totalization agreement also does not exist between the US and Liechtenstein.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"Roth IRA distributions have no special recognition in Liechtenstein law given the absence of a US-Liechtenstein tax treaty. Qualified distributions may still be characterized as income or capital, and local tax treatment would depend on characterization by the Liechtenstein tax authority. Capital-type distributions may be exempt; income-type distributions would be taxed at progressive rates up to 8%.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The United States and Liechtenstein do not have a bilateral tax treaty. US 401(k) and IRA distributions received by Liechtenstein residents are treated as foreign pension or income and would be subject to Liechtenstein income tax at progressive rates up to 8%. Without a treaty, there is no mechanism to exempt or reduce taxation based on treaty provisions. US citizens would pay Liechtenstein tax and may claim a Foreign Tax Credit on their US return.","tax_rate":0.08,"locally_taxed":true,"treaty_protection":false}}

{"rate":0,"notes":"Liechtenstein does not levy a separate capital gains tax on individuals. Private capital gains are generally exempt from income tax for residents.","details":{"tax_type":"Capital Gains Tax","country_name":"Liechtenstein","country_iso_code":"LIE","source_references":["PwC Worldwide Tax Summaries - Liechtenstein","Liechtenstein Tax Administration (Steuerverwaltung)"],"last_verified_date":"2026-06-03","general_description":"Private capital gains realized by individuals are not subject to income tax in Liechtenstein. Gains from the sale of real estate may be subject to a separate real estate gains tax at the municipal level. Corporate capital gains are included in ordinary taxable income and taxed at the flat corporate rate of 12.5%.","corporate_capital_gains":{"rate":0.125,"tax_treatment":"Included in ordinary corporate income and taxed at the standard corporate income tax rate of 12.5%."},"individual_capital_gains":{"rate":0,"tax_treatment":"Private capital gains are generally exempt from income tax. Real estate gains may be taxed separately under cantonal/municipal real estate gains tax rules."}}}

{"notes":"Liechtenstein imposes a withholding tax of 4% on dividends distributed by Liechtenstein companies. There is no additional personal income tax on dividend income received by residents, as investment income is generally subject to the flat wealth tax regime rather than progressive income tax. No standard EU withholding tax directive applies since Liechtenstein is not an EU member, but it participates in the EEA.","rates":[{"rate":0.04,"type":"withholding","notes":"4% domestic withholding tax on dividends paid by Liechtenstein entities. May be reduced under applicable tax treaties."},{"rate":0,"type":"flat","notes":"Dividend income received by Liechtenstein residents is generally not subject to additional income tax beyond the withholding; wealth is taxed under the net wealth tax instead."}]}