The foundation, also known as Stiftung, is the most frequently used by foreign investors’ legal form in Liechtenstein. Foundation is a hybrid entity, which incorporates many of the characteristics of both a company limited by guarantee and a trust. A foundation cannot generally be formed to pursue commercial purposes so it is suitable only for holding assets such as properties, shares in other companies and other forms of investments and has traditionally been used to hold and pass assets from one generation to another in complete confidentiality.
The Liechtenstein Foundation is an ideal portfolio investment vehicle from the management of numbered accounts to the structuring of complicated estates. Investors wishing to shelter their assets from high taxes, to maximize asset protection and at the same time to maintain personal control over their assets as well as provide for the orderly devolution of their worldly goods upon their death, are well advised to consider the Liechtenstein foundation.
Liechtenstein foundations which manage offshore funds pay practically no taxes in Liechtenstein and are free from official supervision.