Looking for a structure that is bankable, compliant and built to last for generations? The Liechtenstein foundation is one of the most respected vehicles in Europe for holding family assets and company shares.
Legal personality and separation
- The foundation owns itself: no shareholders.
- It holds shares, contracts and assets in its own name.
- A natural holding vehicle for Swiss companies and family holdings.
Confidentiality, within the rules
- No public register of beneficiaries.
- Beneficial owners are recorded in the register of beneficial owners and are known to the competent authorities.
- Managed by licensed Liechtenstein fiduciaries, supervised by the Financial Market Authority (FMA).
- Fully compliant with CRS and FATCA: tax authorities receive the information they are entitled to; the public does not.
Asset protection and succession
- Assets separated from the founder’s personal estate and personal creditors.
- Smooth transition on death or incapacity.
- Succession tailored through the statutes and by-laws.
Tax
| Private asset structure (PVS) | Commercial foundation | |
|---|---|---|
| Tax | Minimum tax of CHF 1,800 a year | 12.5% on net income |
| Capital gains and dividends | Not taxed | Generally exempt on participations |
| Accounts and audit | Simplified, no audit | Full bookkeeping, audit |
| Treaty access | No | Possible with real activity |
| Use | Asset protection, holding, succession | Operating or investment entity |
Foundation or trust?
Traditional offshore trusts are increasingly red-flagged by banks. A trust is a relationship; a foundation is a legal person. It owns assets in its own name, signs contracts and is treated by banks as a clear counterparty, which means smoother onboarding and higher bank acceptance. The founder keeps strategic influence through the by-laws, a protector or reserved rights, without legal ownership. And it is European, not offshore.
Use cases
- Holding Swiss or EU company shares
- Wealth structuring and estate planning
- Holding of digital assets
- Cross-border family investments
- An alternative to the trust in civil-law countries
Want a full set-up, a tax memo or integration with a Swiss AG/SA? Contact us at insight@fintechlex.com.
This article is for general information only and does not constitute legal or tax advice.
