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Liechtenstein Tax Haven Liechtenstein Banking


Liechtenstein Tax Haven

The Principality of Liechtenstein was established within the Holy Roman Empire in 1719. Occupied by both French and Russian troops during the Napoleonic wars, it became a sovereign state in 1806 and joined the Germanic Confederation in 1815. Liechtenstein became fully independent in 1866 when the Confederation dissolved. Until the end of World War I, it was closely tied to Austria, but the economic devastation caused by that conflict forced Liechtenstein to enter into a customs and monetary union with Switzerland. Since World War II (in which Liechtenstein remained neutral), the country's low taxes have spurred outstanding economic growth.

The country is situated between Austria and Switzerland in the middle of Europe with a population of 36,000.00. The official language is German.

The Principality is a constitutional Monarchy with Prince HANS ADAM II as Chief of State (since 13 November 1989, assumed executive powers on 26 August 1984); Heir Apparent Prince ALOIS, son of the monarch (born 11 June 1968); note - on 15 August 2004, HANS ADAM transferred the official duties of the ruling prince to ALOIS, but HANS ADAM retains status of chief of state. The parliament is headed by the Prime Minister Klaus Tschutscher.

In 2000, shortcomings in banking regulatory oversight resulted in concerns about the use of financial institutions for money laundering. However, Liechtenstein implemented anti-money-laundering legislation and a Mutual Legal Assistance Treaty with the US that went into effect in 2003.

The first bank was established in Liechtenstein in 1861 “Liechtensteinische
Liechtenstein has traditionally concentrated on Private Banking and wealth management.

As member of the EEA Liechtenstein banks follow the same regulations as other EU banks. Liechtenstein is actively engage in the fight against money laundering and terrorist financing.

Upon Liechtenstein's conclusion of 12 bilateral information-sharing agreements, the OECD in October 2009 removed the principality from its "grey list" of countries that had yet to implement the organization's Model Tax Convention. By the end of 2010, Liechtenstein had signed 25 Tax Information Exchange Agreements or Double Tax Agreements. This has not compromised Liechtenstein’s bank secrecy laws.

A Mutual Legal Assistance Treaty was signed in 2002 with the United. In 2005 Liechtenstein implemented the EU Tax Saving Directive.

Liechtenstein Banking
There are only 15 banks registered in Liechtenstein Tax haven as of 2010.

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