European Prestige
& Asset Protection

A Liechtenstein foundation is a civil-law legal entity with no owners or shareholders, created when a founder dedicates assets to a defined purpose. The transferred assets become a legally independent, special-purpose fund owned by the foundation itself rather than by any individual.

Because the foundation is a separate legal person, the assets it holds belong to the foundation — not to the founder or beneficiaries — placing them beyond the reach of an individual's personal creditors. Creditors generally cannot access foundation assets unless they can prove the structure is a sham or was funded by a fraudulent transfer.

Administration and legal representation rest with the foundation council (Stiftungsrat), which must have at least two members, one typically a licensed Liechtenstein professional. The founder defines the purpose and rules in the statutes and may reserve certain rights, while beneficiaries fall into categories (entitled, prospective, discretionary, ultimate) with differing claims.

The minimum foundation capital is CHF 30,000 (or the equivalent in EUR or USD). It must be fully paid up before registration, with a Liechtenstein or Swiss bank issuing a confirmation letter evidencing the deposit.

Foundations are subject to a flat 12.5% corporate income tax, with an annual minimum tax of CHF 1,800. A foundation that only manages private wealth with no commercial activity can qualify as a Private Asset Structure (PVS), taxed only at the CHF 1,800 minimum, with dividends and capital gains on shareholdings generally exempt.

Once the statutes are drafted and capital is deposited, a notice of formation is filed and approval typically follows within a few business days. Unlike an Anglo-American trust (a fiduciary relationship with no separate legal personality), a Liechtenstein foundation is itself a legal entity that owns the assets — which can offer greater certainty in civil-law jurisdictions.