Structures Liechtenstein
The Liechtenstein trust (Treuhänderschaft)
Updated: · Leutrim Miftaraj, FLIORE · Editorial standards · Deutsche Fassung
Short answer
Liechtenstein is one of the few continental European states with its own trust law: the Treuhänderschaft has been governed by the Persons and Companies Act (Art. 897 ff. PGR) since 1926 and is modelled on the English trust. The trustee holds assets in their own name for beneficiaries under the trust deed. It must be distinguished from the trust enterprise (trust reg.), which is a separate legal form.
Basic principle
In a Treuhänderschaft the settlor transfers assets to a trustee, who holds them as trust property separate from their own assets and manages them for the beneficiaries under the trust deed. The trust itself is not a legal entity. The trust property is protected in the trustee's insolvency. In its basic structure it thus corresponds to the common-law trust, embedded in a civil-law system.
Distinctions
| Treuhänderschaft | Trust enterprise (trust reg.) | Foundation | |
|---|---|---|---|
| Legal nature | Legal relationship, no legal entity | Enterprise with or without legal personality | Legal entity |
| Assets belong to | The trustee as trust property | The trust enterprise | The foundation |
| Basis | Art. 897 ff. PGR | Act on Trust Enterprises | Art. 552 ff. PGR |
| Typical use | Succession planning on the trust model | Business and asset-holding purposes | Family and charitable purposes |
Roles
- Settlor: contributes the assets.
- Trustee: holds and manages the trust property, often a licensed trust company.
- Beneficiaries: receive benefits under the trust deed, with fixed entitlements or at discretion.
- Protector or curator: oversees the trustee where provided for.
Register and due diligence
Depending on duration and structure, trusts must be entered in the commercial register or their documents deposited. Their beneficial owners belong in the register of beneficial owners (VwbP). The trustee is subject to the Due Diligence Act and the Trustee Act and therefore requires complete information on the settlor, beneficiaries and source of the assets.
When it is chosen
The Treuhänderschaft suits families familiar with the trust concept, for example with ties to common-law countries, who want a European location. For tax purposes it is treated differently in the states of residence of those involved; a review in every country concerned is indispensable.
In FLIORE
FLIORE records Liechtenstein trusts as mandates with the roles settlor, trustee, protector and beneficiaries, with trust deed, supplements and register documents in the vault. The assets flow into the family's consolidated view.
At a glance
| Basis | Art. 897 ff. PGR, since 1926 |
|---|---|
| Legal nature | Legal relationship, no legal entity |
| Distinction | Trust enterprise (trust reg.) is a separate legal form |
Frequently asked questions
Is the Liechtenstein Treuhänderschaft a real trust?
It is modelled on the common-law trust and is generally treated internationally as a trust, for example for CRS and FATCA. In an individual case the applicable law of the state concerned decides.
Who may act as trustee?
In principle natural or legal persons; trustees acting professionally need a licence under the Trustee Act.
How does it differ from the foundation?
The foundation is a separate legal entity with bodies; in a Treuhänderschaft the assets belong to the trustee as trust property.
Must the trust be entered in the VwbP?
Yes, if a trustee acts in Liechtenstein; the beneficial owners under the VwbP Act must be registered.
Sources
- Liechtenstein legal database – gesetze.li
- Financial Market Authority Liechtenstein (FMA)
- Liechtenstein National Administration – Commercial register
This page provides orientation and does not replace legal or tax advice. The cited legal sources in their applicable version are authoritative.
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