Freelancing in Liechtenstein: self-employed registration, AHV/IV/FAK contributions, income tax, and the CHF 100,000 VAT threshold shared with Switzerland
A Liechtenstein freelancer registers as self-employed and joins the AHV/IV/FAK social-security scheme (around 11–12% of net income). Income tax combines a national scale with a communal surcharge, giving effective rates up to about 22.4%. VAT is run jointly with Switzerland: the standard rate is 8.1% and registration is mandatory once worldwide turnover reaches CHF 100,000.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
Liechtenstein pairs a very small size with a modern, Swiss-aligned tax system. Going freelance here means registering as self-employed, joining the AHV/IV/FAK social scheme, and — for VAT — plugging into the common market it shares with Switzerland.
Registering as self-employed
You register your activity as a self-employed person (a sole proprietorship is an Einzelfirma/Einzelunternehmen) and enrol with the social-security system. Businesses owned directly by an individual are transparent for tax — the profit is taxed on you personally rather than at a separate company level — which keeps the setup simple for a one-person operation.
AHV/IV/FAK contributions
Self-employed people contribute to AHV (old-age and survivors' insurance), IV (disability insurance) and FAK (family allowances) at a combined rate of roughly 11–12% of net self-employment income, within minimum and maximum bases. Unlike employees, the self-employed are not automatically covered by occupational pension and accident schemes, so arranging that cover privately is a deliberate decision worth making early.
Income tax and the shared VAT system
Personal income tax combines a national scale with a communal surcharge (each municipality sets its own multiplier), producing effective rates from about 2.5% up to roughly 22.4% at the top; there is also a personal exemption and a modest wealth tax. For indirect tax, Liechtenstein forms a single VAT territory with Switzerland: the standard VAT rate is 8.1%, and registration becomes mandatory once worldwide turnover reaches CHF 100,000 (voluntary below that to recover input VAT). VAT is run by the Liechtenstein Tax Administration in coordination with the Swiss authorities.
General information about freelancing in Liechtenstein, current as of the review date above, and not tax advice. Rates, communal multipliers and thresholds change — confirm current figures with the Liechtenstein authorities (llv.li), the AHV (ahv.li) or a qualified adviser.
Frequently asked questions
What is the VAT threshold in Liechtenstein?
CHF 100,000 of worldwide turnover. Liechtenstein forms a single VAT territory with Switzerland, so the Swiss system applies: the standard rate is 8.1%, and registration becomes mandatory once turnover reaches CHF 100,000. Below that you are exempt but may register voluntarily to recover input VAT. VAT is administered by the Liechtenstein Tax Administration in coordination with the Swiss Federal Tax Administration.
What social contributions do the Liechtenstein self-employed pay?
Self-employed people register with and contribute to AHV/IV/FAK — old-age and survivors' insurance (AHV), disability insurance (IV) and family allowances (FAK) — at a combined rate of roughly 11–12% of net self-employment income, subject to minimum and maximum bases. Occupational pension and accident cover work differently for the self-employed than for employees, so it is worth arranging private cover deliberately.