How inheritance tax works in Liechtenstein
Liechtenstein does not levy inheritance, estate or gift taxes. A normal inheritance or lifetime gift is therefore not charged a Liechtenstein transfer tax merely because property passes from one person to another.
A separate dedication tax can apply when wealth is dedicated to a non-taxable entity or otherwise leaves the Liechtenstein wealth-tax net without a taxable privilege or share taking its place. The state rate is 3.5%, plus a municipal surcharge that can take the maximum to 10.5%.
The absence of inheritance tax does not remove succession-law work. Wills, forced-heirship rules, foundations and trusts, asset location, reporting and the tax law of the deceased’s or donor’s other country can all change the result.
Transfers of Liechtenstein real estate can also bring property-related taxes or a future real-estate profit-tax issue, even though there is no general inheritance or gift tax.
Tax rates at a glance
- Inheritance tax
- 0%Not levied
- Estate tax
- 0%
- Gift tax
- 0%
- Dedication tax
- 3.5% state
- Dedication tax with communal surcharge
- Up to 10.5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesFamily officesInvestorsFoundersEstate planners
Watch out for
- No Liechtenstein inheritance tax does not guarantee a tax-free succession. The deceased’s residence, the heir’s residence, asset situs and foreign anti-avoidance or estate rules can create a liability elsewhere.
- A gift to a private person is different from a dedication of wealth to a non-taxable entity or a structure that takes assets out of the wealth-tax net. The latter can trigger dedication tax.
- Foundations and trusts can create tax, reporting and legal-control consequences even when no inheritance tax is charged at the moment of transfer.
- Real estate, company shares and financial accounts can have different succession formalities. Tax should be checked together with Liechtenstein civil and foundation law.
Frequently asked questions
Does Liechtenstein have inheritance tax?
No. Liechtenstein does not levy inheritance, estate or gift taxes.
Are gifts tax-free in Liechtenstein?
There is no general gift tax, but a specific dedication tax can apply when assets are transferred to a non-taxable entity or otherwise leave the wealth-tax net.
What is Liechtenstein dedication tax?
It is a tax on certain wealth dedications that remove assets from the wealth-tax base. The state rate is 3.5%, and the communal surcharge can bring the combined maximum to 10.5%.