Why Start an Investment Fund in Liechtenstein?

Updated on Tuesday 03rd April 2018

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Liechtenstein is an appealing investment destination, as it is an active member of the European Economic Area (EEA). This provides an attractive legal framework, as the country has adopted the European Union’s legislation on investments, granting access to the European single market and thus, being a suitable market for the investors who want to set up hedge fund startup or another type of investment vehicle

With a stable economy, Liechtenstein benefits from a predictable taxation system and compliance with international standards. Equally important is the fact that Liechtenstein enjoys from a top credit ranking awarded by international credit rating agencies, which is generally established at AAA, one of the best indicators of a strong economy

A growing investment market in Liechtenstein 

At the level of 2016, Liechtenstein accounted for approximately 670 investment funds, which managed assets with a total value of EUR 44 billion. Since 2008, the investment market increased at a rapid pace, considering that in that year, the investment market had a total value of only EUR 18 billion

Foreign investors who are interested in how to start a fund in Liechtenstein should know that the country complies with the EU regulations for a wide range of investment vehicles, including for the legislation on undertakings for collective investments in transferable securities (UCITS) and alternative investment funds (AIF)

Funds registered here are required to hold their financial assets in local banks and the procedures on this matter are also regulated under the EU legislation

Rapid registration in Liechtenstein 

Foreign businessmen are allowed to establish an investment fund as prescribed for local businessmen. The procedure on how to start an investment fund in Liechtenstein is rather simple, as the processing steps can be concluded in a short period of time. In the case of UCITS funds, the processing procedure lasts approximately 10 working days, while in the case of AIFs, it can increase to 20 days

Another advantage provided by the local legislation refers to the types of investors that may set up a fund here, who can be retail, professional or institutional investors and who can choose from a wide category of vehicles, designed to address their investment needs

Foreign investors may find out more on the advantages of setting up a fund in this country from our team of affiliates in Liechtenstein