Liechtenstein is situated between Switzerland and Austria. It is the fourth-smallest state in Europe with an area of 160 km2, with the official language being German, and most citizens being perfectly fluent in English.
Following the Second World War, significant investments were made in industrial companies. As a result, in the post-war era, Liechtenstein went through a considerable transformation from an agrarian state to a modern country with a diversified economy, which lead to a prolonged economic boom.
Despite its small size and lack of natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy with a vital financial services sector and one of the highest per capita income levels in the world. Services constitute more than 50% of gross domestic product (GDP), which was estimated at USD 4.98 billion in 2014.
Currently, Liechtenstein has a liberal economic policy which welcomes most innovators and entrepreneurs with flexible legal frameworks. This policy is reflected in labour and company laws. With such mindset in place, the Financial Market Authority (FMA) has set up an internal competence team, the "Regulatory Laboratory", which deals with regulation and innovation in the field of financial technologies. Furthermore, the manageable size of the country entails flexibility and short decision- making channels in all matters, granting a dynamic and accessible communication between all parties. Liechtenstein also has a fair and straightforward tax system, where the income tax rate for companies is 12.5%. There is no capital or coupon tax.
The blockchain & crypto ecosystem in Liechtenstein
- Well-known companies such as Aeternity and Bittrex Global have set their offices up in Liechtenstein
- CV Labs, a well-known blockchain-related Swiss venture, is also set up in Liechtenstein
- The legal framework for TT Service Providers has been heralded as one of the most advanced of its kind
- The Token Summit is an annual event attracting various companies and enthusiasts from around the world
- Access to banking for blockchain and crypto-related companies
Tax and Operational Regime
- Flat income tax rate of 12.5% for companies
- Bank accounts are available from institutions such as Bank Frick.
- No need for physical presence for the actual registration of the company.
- EEA member state status grants access to the European Market
- Easily accessible via Zurich