Private asset structure (Liechtenstein)
PAS, Privatvermögensstruktur, PVS
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Liechtenstein tax status for legal entities that exclusively manage their own assets passively; they pay only the minimum income tax.
Economic activity or asset management for third parties rules out the status. Founders and beneficiaries are taxed under the rules of their country of residence.
In practice
The private asset structure status requires that the entity carries out no economic activity and manages its assets exclusively passively. It is confirmed by the tax administration on application and can be lost if the activity changes. In practice, the conditions are reviewed and documented every year – especially where the structure grants loans, holds real estate or actively manages participations.
Distinctions and common mistakes
The status is a tax status, not a legal form; foundations, establishments or companies that meet the conditions can apply for it. Typical mistakes are activities that may count as economic activity – such as advisory services or asset management for persons outside the structure – and missing documents with which the conditions can be evidenced to the tax administration.
Relevant in: Liechtenstein
Related terms
- Anstalt (Liechtenstein establishment)
- A Liechtenstein legal form without members, whose rights lie with the holder of the founder's rights; depending on its articles, it resembles either a company or a foundation.
- Family foundation
- A foundation whose purpose lies predominantly in the interest of one or more families.
Mentioned in these guides
- Foundation in Switzerland or Liechtenstein? The comparisonSwiss family foundation and Liechtenstein foundation compared: purposes, maintenance payments, supervision, bodies, confidentiality, tax and administration.