Liechtenstein Inheritance & Gift Tax Guide: 0% Spouse/Children, Up to 27% Non-Relatives 2026

Q: Is there any tax on assets I inherit from abroad as a Liechtenstein resident?

Liechtenstein may tax inherited assets from abroad depending on relationship and DTTs. Close family transfers are generally exempt. The deceased's country may also tax.

Liechtenstein imposes cantonal inheritance and gift tax with highly favorable rates for close family members. Transfers to spouses, descendants, and parents are generally taxed at 0%. Non-relatives face progressive rates up to 27%. Stiftungen (foundations) are popular for estate planning. Here is how inheritance and gift tax works in 2026.

Inheritance and gift tax in Liechtenstein is a cantonal/municipal tax, meaning rates and exemptions follow the Liechtenstein system (similar to Swiss cantonal inheritance tax). The tax is imposed on the recipient (heir or donee), not on the estate or donor. The relationship between the deceased/donor and the heir/recipient determines the applicable rate. Close family members benefit from full exemptions, making Liechtenstein highly attractive for family wealth transfer. Compared to Austria (inheritance tax abolished but gift tax up to 25%), Germany (up to 50%), and France (up to 60% between non-relatives), Liechtenstein offers one of the most favorable inheritance tax regimes in Europe for family transfers. Wealth tax guide →

Real-world example: A parent transfers CHF 2,000,000 in assets (including real estate and cash) to their child as an inheritance. Tax: 0% (descendant exemption). An individual leaves CHF 1,000,000 to their spouse. Tax: 0%. A person leaves CHF 500,000 to a non-relative friend. Tax at progressive rate up to 27% = potentially CHF 135,000. If the same assets were passed in Germany, the child would pay between 7% and 30% (depending on the amount above the €400,000 allowance). In France, a child inheriting CHF 2,000,000 from a parent would pay approximately CHF 340,000 after the €100,000 allowance. Wealth tax →

Inheritance Tax Rates

Spouse/registered partner: 0% — fully exempt from inheritance tax
Descendants (children, grandchildren): 0% — fully exempt
Parents and grandparents: 0% — fully exempt
Siblings: Lower progressive rates, typically 5-15% depending on amount
Other relatives: Moderate progressive rates
Non-relatives: Higher progressive rates up to 27%

The exemption for spouse/descendants/parents is absolute — no cap on the exempt amount. This makes Liechtenstein one of the most tax-efficient jurisdictions for family wealth transfer in Europe.

Gift Tax

Gift tax: Follows the same rates and exemptions as inheritance tax
Spouse/descendants/parents: 0% gift tax on any amount
Non-relatives: Progressive rates up to 27%
Annual gift exemption: Small gifts below a threshold may be exempt even for non-relatives
Filing: Gifts must be reported to the tax authorities; exemptions require proper documentation

Gifts made within a certain period before death may be aggregated with the inheritance for tax calculation purposes (clawback rules apply in some cases).

Stiftungen (Foundations) for Estate Planning

Liechtenstein Stiftungen (foundations) are a popular vehicle for estate and succession planning:

Privately held foundations: Can be used to hold family assets, provide for beneficiaries, and manage succession
Tax treatment: Foundations are separate legal entities. Depending on their structure and activities, they may be subject to CIT at 12.5% on business income
Confidentiality: Foundations offer privacy as the foundation documents are not publicly registered
Flexibility: Foundations can be tailored to specific family needs with detailed beneficiary provisions

Related Costs

Notary fees: Required for legalizing inheritance and gift transfers, typically 0.5-1% of asset value
Property registration: Fees for registering inherited or gifted property in the land registry
Legal fees: Costs for lawyers handling probate, foundation setup, or gift documentation

Is there any tax on assets I inherit from abroad as a Liechtenstein resident?

Liechtenstein may impose inheritance tax on assets received by a Liechtenstein resident from a foreign estate, depending on the relationship and applicable DTT. Many treaties exempt close family transfers. The country where the deceased was resident may also impose its own inheritance tax.

Do I need to report gifts or inheritances to the tax authorities?

Yes. Gifts and inheritances must be reported to the Steuerverwaltung, even if the applicable tax rate is 0%. This ensures proper documentation and avoids future disputes. Failure to report may result in penalties.