Liechtenstein

In Liechtenstein, cryptocurrencies are legally classified as property, falling under the general rules for movable private assets. The country has a regulated environment for crypto, driven by its dedicated Blockchain Act (TVTG), which has been in force since January 1, 2020. This comprehensive legal framework provides clarity for blockchain and token service providers. The Financial Market Authority (FMA) oversees blockchain and crypto regulation under the Blockchain Act. However, crypto taxation is administered by the National Administration for Taxes and Customs, which applies the principles of the general Tax Act (Steuergesetz, StG). For individuals, Liechtenstein generally imposes no capital gains tax on the disposal of privately held crypto assets. This 0% rate applies regardless of how long the assets have been held, meaning there is no distinction between short-term and long-term gains. Income derived from crypto, such as through professional trading or rewards, is subject to progressive income tax rates ranging from 1.2% to 8%, encompassing both state and communal taxes. For corporations, the standard corporate tax rate is 12.5%, in addition to a capital tax on equity ranging from 0% to 0.89%. Value Added Tax (VAT) at 8.1% applies to crypto-related services. However, crypto-to-crypto and crypto-fiat exchanges are exempt from VAT, as they are considered financial services. Converting crypto to fiat currency or swapping one crypto for another is not a taxable event for private asset holders. Staking rewards are taxed as income at the 1.2-8% progressive rates if the activity is considered professional. However, passive staking by private individuals is generally exempt. Similarly, income from crypto mining is treated as business income, taxed at 1.2-8% for individuals and 12.5% for corporations, with deductible expenses. Decentralized Finance (DeFi) yields are taxed as income if the activity is active, while gains from private DeFi holdings are exempt. Non-Fungible Tokens (NFTs) are considered movable private assets, resulting in a 0% capital gains tax for individuals unless they are trading professionally. Liechtenstein is preparing for new international reporting standards. From January 1, 2026, crypto-asset service providers will be required to report user data, including transaction information, under the OECD's Crypto-Asset Reporting Framework (CARF) and the revised Common Reporting Standard (CRS). This involves drafting specific legislation, such as the CARF-G and AIA-G-rev, to facilitate the exchange of crypto data.